Summary of Zijin Mining Conference Call Company Overview - **Company**: Zijin Mining (2899 HK/601899 CH) - **Industry**: Metals & Mining Key Financial Results - **3Q25 Net Profit**: RMB 14.6 billion, an increase of 11% quarter-on-quarter (q-o-q) and 57% year-on-year (y-o-y) [1][10] - **Mined Gold Sales Volume**: Increased by 9% q-o-q and 27% y-o-y [1] - **Mined Copper Sales Volume**: Remained flat q-o-q but increased by 8% y-o-y [1] - **Average Selling Price (ASP) of Mined Gold**: Increased by 4% q-o-q and 43% y-o-y [1] - **Unit Cost of Mined Gold**: Increased by 3% q-o-q and 20% y-o-y to approximately RMB 280/g [1] - **Gross Margin for Mined Gold**: Improved to 63.6%, up 7 percentage points (ppt) y-o-y, flat q-o-q [1] Strategic Outlook - **Output Targets**: - Copper: 1.5-1.6 million tons (mt) by 2028, revised target for 2025 to 1.1 mt [2] - Gold: 100-110 tons by 2028, with Zijin Gold International targeting approximately 100 tons annually by 2030 [2] - **Cost Management**: Focus on cost optimization before scaling lithium output, with full-year cost inflation for gold and copper expected to remain within 5-8% y-o-y [2] - **Earnings Momentum**: Anticipated sustained gold price strength and operational efficiency improvements to support earnings in 4Q25 and FY26 [2] Investment Ratings and Target Prices - **Rating**: Maintain Buy on H/A shares [3] - **Target Prices**: - H-share: Increased to HKD 43.00 from HKD 41.80, implying a 33% upside [3][5] - A-share: Increased to RMB 39.20 from RMB 38.00, implying a 32% upside [3][5] Financial Projections - **Earnings Growth**: Projected compound annual growth rate (CAGR) of 31% for 2024-2027 [3] - **Earnings Estimates**: Increased for 2025/26/27 by 5%/10%/6% respectively [3][23] Risks and Challenges - **Potential Risks**: - Delays in new capacity construction - Lower metal prices - Geopolitical conflicts affecting overseas operations - Overambitious mergers and acquisitions (M&A) impacting financials - Rising production costs due to inflation and stricter regulations [26] Additional Insights - **One-off Gains**: Approximately RMB 1.5 billion from changes in fair value of financial assets [1] - **Market Capitalization**: Approximately HKD 872.25 billion (USD 112.29 billion) [6] - **Free Float**: 77% for both H and A shares [6] This summary encapsulates the key points from the conference call, highlighting Zijin Mining's financial performance, strategic outlook, investment ratings, and associated risks.