Huaxin Securities·2024-05-18 13:02Investment Rating - The investment rating for Zijin Mining (601899.SH) is "Buy" (maintained) [2] Core Views - Zijin Mining aims to accelerate the release of mining capacity and strives to achieve its originally set goals two years ahead of schedule, targeting completion by 2028 instead of 2030 [4][5] - The company plans to enhance its production capacity across various minerals, including copper, gold, zinc, silver, and lithium, with significant production targets set for the coming years [5][6] Summary by Sections Production Plans - In 2024, the company plans to produce 1.11 million tons of copper, 73.5 tons of gold, 470,000 tons of zinc (aluminum), 420 tons of silver, 25,000 tons of lithium carbonate equivalent, and 9,000 tons of aluminum [5] - By 2025, production targets include 1.22 million tons of copper, 85 tons of gold, 500,000 tons of zinc (aluminum), 10,000 tons of lithium carbonate equivalent, and 1,000 tons of molybdenum [5] - For 2028, the targets are set at 1.5-1.6 million tons of copper, 100-110 tons of gold, 55-60 tons of zinc (aluminum), 600-700 tons of silver, and 25,000-30,000 tons of lithium carbonate equivalent [5] Resource Development - The company is focusing on accelerating the capacity release of its major copper mines, including the construction of the second phase of the Tibet Julong copper mine and the initiation of projects in Congo (Kinshasa) and Serbia [6][7] - In the gold sector, Zijin Mining aims to maintain high production levels at its existing mines while developing new projects in Shandong and Xinjiang [6] - The company is also prioritizing the development of silver resources related to new energy and expanding its zinc and lead production [6] Strategic Acquisitions - Zijin Mining plans to implement a strategy combining counter-cyclical acquisitions and independent exploration, focusing on significant resource projects globally and in neighboring countries [8] - The company aims to enhance its resource reserves significantly through strategic acquisitions during market downturns and increased exploration during prosperous periods [8] Financial Forecast - The projected revenues for Zijin Mining from 2024 to 2026 are estimated at 327.03 billion, 357.19 billion, and 384.68 billion yuan, respectively, with net profits expected to be 29.44 billion, 39.06 billion, and 44.78 billion yuan [9][11] - The company’s earnings per share (EPS) is forecasted to grow from 1.12 yuan in 2024 to 1.70 yuan in 2026, reflecting a strong growth trajectory [13]