Zijin Mining(SH:601899)2025-04-21 03:00Investment Rating - The investment rating for Zijin Mining Group is Overweight, with an industry view classified as Attractive [5][68]. Core Insights - Zijin Mining Group reported higher management expenses year-over-year primarily due to increased employee bonuses following strong FY24 earnings. Gains from fair value are mainly attributed to stock investments [2]. - The company is slowing down the construction of its lithium projects due to low lithium prices, while aiming to improve project designs to reduce production costs. Zijin plans to be ready for a quick ramp-up when lithium prices become favorable [3]. - Zijin is negotiating the purchase of 100% of the Akyem gold mine in Ghana, believing the project has potential for increased reserves given the current high gold prices [4]. - The growth in copper production volume in 1Q25 was mainly driven by Julong and Zijinshan, while gold volume growth was primarily from Shanxi Zijin and Porgera gold mine. Zijin is utilizing more low-grade ore due to rising gold prices, which has led to some increased costs, but aims to keep cost increases within 5% year-over-year in 2025 [8]. Financial Metrics - The price target for Zijin Mining Group is HK$22.90, representing a 33% upside from the current price of HK$17.22 [5]. - For the fiscal year ending December 2025, the estimated revenue is Rmb397,524 million, with an EBITDA of Rmb66,114 million and a net income of Rmb41,496 million [5]. - The projected EPS for 2025 is Rmb1.58, with a P/E ratio of 10.3 and a P/BV of 2.6 [5].