Core Viewpoint - The report from Northeast Securities indicates that Zijin Mining International (02259) is expected to maintain a long-term bullish trend in gold prices, supported by its strong resource acquisition, mining operation, and production capabilities, warranting a higher valuation and a "buy" rating for the company [1] Company Analysis - **Resource Acquisition Capability**: Zijin Mining International has a lower average acquisition cost for gold mines at $61.3 per ounce from 2019 to 2024, compared to the industry average of $92.9 per ounce. The acquired mines have also seen resource increases, with the Rosberl and Akim mines showing over 70% growth in resources since acquisition [1] - **Mining Operation Capability**: The company has improved its mining operations by enhancing stripping ratios and recovery rates, turning previously unprofitable mines into profitable ones. The average grade of the company's producing mines is around 1.4g/t, with an All-In Sustaining Cost (AISC) of $1400-$1500 per ounce, ranking 6th among the top 15 gold producers. Costs are expected to stabilize in 2024-2025 [1] - **Production Delivery Capability**: Over the past three years, the company's production growth rate has been 21%, the fastest among large gold stocks. The company has consistently met its production guidance, with delivery rates of 99%, 101%, and 103% for its six producing mines from 2022 to 2024. Future growth is anticipated through both organic growth and external acquisitions, with a projected compound annual growth rate (CAGR) of over 15% for gold production [1] Industry Outlook - **Short to Medium Term**: Global central bank gold purchases are expected to remain above 1000 tons annually, coupled with sustained enthusiasm from Chinese investors, which is likely to support gold prices. The current environment of the Federal Reserve maintaining a rate-cutting cycle and the U.S. economy facing stagflation has led to a significant shift of European and American funds towards gold, indicating continued support for a bull market in gold [2] - **Long Term**: The depreciation of fiat currencies and ongoing geopolitical tensions are foundational elements for the current super bull market in gold. The expansion of U.S. fiscal policy and increasing government debt, along with challenges to the independence of the Federal Reserve, particularly with potential changes in leadership, may further open up upward space for gold prices. Geopolitical tensions are also likely to drive various buyers to reduce their dollar asset allocations in favor of gold [2]

Core Insights - The gold ETF fund (159937) has seen a recent increase of 0.16%, with a latest price of 7.43 yuan and a transaction volume of 2.57 billion yuan as of May 27, 2025 [1] - The fund has maintained a strong performance, with a 91.39% increase in net value over the past five years, ranking second among comparable funds [1] - The fund's year-to-date relative drawdown is 0.32% as of May 26, 2025, indicating resilience against market fluctuations [3] Trading Activity - The gold ETF fund has experienced significant trading activity, with an average daily transaction volume of 9.98 billion yuan over the past month, placing it among the top three comparable funds [1] - Leveraged funds have been actively buying into the gold ETF, with a net inflow of 24.19 million yuan on the highest single day, bringing the latest financing balance to 3.738 billion yuan [1] Performance Metrics - The fund's Sharpe ratio over the past year stands at 2.36, indicating a favorable risk-adjusted return [2] - Historical performance shows that the fund has achieved a maximum monthly return of 10.62%, with the longest streak of consecutive monthly gains being six months [1] Fees and Management - The management fee for the gold ETF fund is 0.50%, while the custody fee is 0.10% [4]