Zijin Mining(SH:601899) Huachuang Securities·2026-01-25 12:45Investment Rating - The report maintains a recommendation for precious metals, particularly gold and silver, due to rising geopolitical risks and expectations of interest rate cuts by the Federal Reserve [1][2]. Core Viewpoints - The report highlights that the recent geopolitical tensions and the crisis of independence of the Federal Reserve have led to a surge in gold and silver prices, with gold surpassing $4900 per ounce and silver exceeding $100 per ounce [1][2]. - It is anticipated that the demand for gold from central banks will continue to support prices, as China has increased its gold reserves for 14 consecutive months, and other countries are also planning to increase their gold holdings [2]. - The aluminum market is expected to experience fluctuations due to seasonal demand and macroeconomic disturbances, but the long-term fundamentals remain strong, with supply constraints and new demand emerging in various sectors [3][4]. Summary by Sections Industrial Metals - The report indicates that geopolitical tensions and the Federal Reserve's independence crisis are driving precious metal prices to new highs, with significant increases in gold and silver prices [1][2]. - The aluminum market is entering a consumption off-season, but the long-term outlook remains positive due to rigid supply and new demand in energy storage and other sectors [3][4]. Company Insights - Zijin Mining's second phase of the Julong Copper Mine has commenced production, increasing its copper production capacity to 350,000 tons per day, which will enhance its position as a major global copper producer [4][9]. - The report expresses optimism about the profitability of the electrolytic aluminum industry, projecting average profits around 7600 RMB per ton, with companies showing a strong willingness to return value to shareholders through dividends [4][10]. Stock Recommendations - The report recommends investing in precious metals and copper-aluminum sectors, highlighting specific companies such as Zijin Mining, China Hongqiao, and others as potential investment opportunities [10][11].