Core Viewpoint - The mining industry, particularly gold, is experiencing significant growth, with Zijin Mining achieving substantial revenue and profit increases due to rising international gold prices and strategic acquisitions [2][3]. Financial Performance - In the first three quarters of 2025, Zijin Mining reported operating revenue of 254.2 billion yuan, a year-on-year increase of 10.33%, and a net profit of 45.701 billion yuan, up 53.99% year-on-year [2]. - The company's non-recurring net profit reached 34.127 billion yuan, reflecting a growth of 43.71% compared to the previous year [2]. Gold Production and Market Dynamics - Zijin Mining's gold production for January to September 2025 was 65 tons, marking a 20% increase year-on-year, with the third quarter alone contributing 24 tons, a 7% increase from the previous quarter [3]. - The rise in gold production is attributed to new acquisitions and increased processing at existing mines, including the Ghana Akim Gold Mine and the Xinjiang Sava Yalton Gold Mine [3]. Listing and Strategic Focus - Zijin Gold International, a subsidiary of Zijin Mining, successfully listed on the Hong Kong Stock Exchange in September 2025, focusing on global gold asset operations [2][3]. Copper Production Challenges - Copper production growth has slowed due to a flooding incident at the Kamoa-Kakula mine, with Zijin Mining's copper output for the first three quarters of 2025 at 830,000 tons, a 5% increase year-on-year, but a 6% decrease quarter-on-quarter [6][7]. - The flooding incident has led to a downward revision of the mine's production expectations for 2025 [7]. Cost Pressures - The unit sales costs for major products, including gold and copper, have increased, with gold ingot costs rising by 15.2% and copper concentrate costs by 14.37% year-on-year [9][10]. - The increase in costs is attributed to declining ore grades, increased transportation distances, and higher transitional costs from newly acquired mines [9]. Market Outlook - The global demand for copper is expected to rise significantly due to the growth of electric vehicles and clean energy sectors, with a projected total demand exceeding 35 million tons within the next 20 years [6]. - Zijin Mining's lithium carbonate production is also progressing, with 11,000 tons produced in the first three quarters of 2025 [8].

Core Viewpoint - The report from Jefferies indicates that Zijin Mining's (601899) (02899) net profit after tax for Q3 reached 14.6 billion RMB, reflecting a quarter-on-quarter increase of 11% and a year-on-year increase of 57%, slightly exceeding expectations [1] Financial Performance - The recurring net profit after tax was 12.5 billion RMB, with a quarter-on-quarter increase of 6% and a year-on-year increase of 50%, aligning with expectations [1] - The target price for Zijin's H-shares has been raised from 29.6 HKD to 38.1 HKD, while the A-shares target price has increased from 27.3 RMB to 35.2 RMB, both maintaining a "Buy" rating [1] Production Metrics - Gold production for the period was 23.8 tons, showing a quarter-on-quarter increase of 7% and a year-on-year increase of 26%, with a cumulative year-to-date increase of 20% [1] - Following the acquisition of the Raygorodok gold mine in Kazakhstan, the company expects total gold production to exceed the guidance of 85 tons, now estimated at approximately 89 tons for the year [1] - Copper production guidance has been revised down from 1.15 million tons to 1.10 million tons for the year, with a further reduction to 1.07 million tons anticipated for 2024; however, the impact on profitability is expected to be limited due to rising copper prices offsetting the production decline [1]

Core Insights - The report from CITIC Securities indicates that Zijin Mining (02899) benefited from rising gold and copper prices, achieving a revenue of 86.49 billion yuan in Q3 2025, a year-on-year increase of 8.1%, and a net profit attributable to shareholders of 14.57 billion yuan, a year-on-year increase of 57.1% and a quarter-on-quarter increase of 11.0% [1] Group 1 - The production of gold significantly exceeded the annual plan's progress [1] - Copper production experienced a quarter-on-quarter decline due to the flooding incident at the Kamoa-Kakula copper mine in the Democratic Republic of Congo, with the company actively working on the resumption of operations in the eastern section of the Kamoa mine [1] Group 2 - On September 30, Zijin Gold International (02259) successfully listed on the Hong Kong Stock Exchange, setting multiple records for mining company IPOs [1] - As the controlling shareholder of Zijin Gold International, the company stands to benefit from substantial returns from future high-speed growth and potential overall market value enhancement through revaluation [1] Group 3 - Zijin Gold International has completed the acquisition of 100% equity in the Raygorodok gold mine in Kazakhstan, with all conditions precedent for the agreement having been fulfilled or waived as of October 10, 2025 [1]

Core Viewpoint - Jefferies' research report indicates that Zijin Mining's net profit after tax for Q3 reached 14.6 billion yuan, representing a quarter-on-quarter increase of 11% and a year-on-year increase of 57%, slightly exceeding the firm's expectations [1] Financial Performance - The recurring net profit after tax was 12.5 billion yuan, with a quarter-on-quarter increase of 6% and a year-on-year increase of 50%, aligning with the firm's expectations [1] - Gold production for the period was 23.8 tons, showing a quarter-on-quarter increase of 7% and a year-on-year increase of 26%, with a cumulative year-on-year increase of 20% for the first three quarters of the year [1] Production Guidance - Following the recent acquisition of the Raygorodok gold mine in Kazakhstan, the company is expected to exceed its annual gold production guidance of 85 tons, with the latest estimate reaching approximately 89 tons [1] - However, copper production guidance has been revised down from 1.15 million tons to 1.10 million tons for the year, and to 1.07 million tons for 2024 [1] - The impact on profitability is expected to be limited, as rising copper prices may offset the decline in production [1] Target Price Adjustment - Jefferies has raised the target price for Zijin's H-shares from 29.6 HKD to 38.1 HKD, and for A-shares from 27.3 CNY to 35.2 CNY, maintaining a "Buy" rating [1]

Core Viewpoint - China Gold International (600916) has seen its stock price rise over 7%, reaching a historical high of 96 HKD, driven by strong mid-year performance results [1] Financial Performance - The company reported a sales revenue of 580 million USD, an increase of 178.36% year-on-year [1] - Mining operating profit reached 277 million USD, reflecting a significant increase of 1443.71% year-on-year [1] - Shareholder profit attributable to the company was 200 million USD, a turnaround from a loss of 31.67 million USD in the same period last year [1] Production Metrics - Total gold production for the first half of the year was 2.74 tons, representing a year-on-year growth of 69% [1] - Total copper production reached 35,000 tons, showing a substantial increase of 231% year-on-year [1] - Both gold and copper production exceeded 50% of the annual guidance [1] Future Expansion Potential - The company has significant expansion potential at the Jiama mine, with the Yulong tailings project expected to be operational by mid-2027, increasing daily processing capacity from 34,000 tons to 44,000 tons [1] - There is a possibility of further increasing processing capacity to 50,000 tons per day, pending safety permit approvals [1] - Exploration activities in the Bayi Ranch and Zhegu Langbei areas have shown considerable resource potential, which may support larger-scale expansions in the future [1]

Market Overview - On July 30, US stock indices showed mixed results, with the Dow Jones down 0.38%, S&P 500 down 0.12%, and Nasdaq up 0.15% [1] - Major technology stocks experienced varied performance, with Nvidia rising over 2% and Apple falling more than 1% [3] Gold and Precious Metals - Gold stocks fell across the board, with notable declines including US Gold down over 7%, AngloGold down over 5%, and Kinross Gold down over 3% [5] - International precious metal futures saw a general decline, with COMEX gold futures down 1.58% to $3327.9 per ounce and COMEX silver futures down 2.90% to $37.175 per ounce [12][13] Copper Sector - Copper mining stocks experienced significant drops, with Freeport-McMoRan down nearly 10% and a cumulative decline of 13% over the last five trading days [8] - Hudbay Minerals fell nearly 7%, and Southern Copper dropped over 6% [8] Economic Indicators - The US Federal Reserve maintained the federal funds rate target range at 4.25% to 4.50% following a two-day monetary policy meeting [1] - The Bureau of Economic Analysis reported a 3.0% annual growth rate for real GDP in Q2 2025, reversing a previous contraction of -0.5% in Q1 [11]

Core Viewpoint - Zijin Mining Group Co., Ltd. plans to spin off its subsidiary, Zijin Gold International Co., Ltd., for a public listing on the Hong Kong Stock Exchange, aiming to enhance its overseas gold mining operations and maintain a degree of independence from the parent company [2][3]. Group 1: Spin-off Details - The spin-off will involve the issuance of shares not exceeding 15% of the total share capital of Zijin Gold International post-issuance, with the offering comprising both public and international placements [2]. - Prior to the spin-off, Zijin Mining intends to restructure and consolidate several overseas gold mining assets under Zijin Gold International, which is currently in progress [2]. - The spun-off entity will focus on gold exploration, mining, production, and sales in regions such as South America, Central Asia, Africa, and Oceania, leveraging local gold resource advantages [2][3]. Group 2: Business Strategy and Future Plans - Following the spin-off, Zijin Gold International aims to deepen its overseas market presence and continue global gold resource development while maintaining operational independence from Zijin Mining and its other subsidiaries [2]. - Zijin Mining's 2024 report indicates a strategic focus on low-cost operations and optimizing the construction and production schedules of its major lithium projects, with plans to achieve a lithium carbonate equivalent production capacity of 40,000 tons by 2025 [4]. - The company also plans to produce 115,000 tons of copper, 85 tons of gold, 44,000 tons of zinc (lead), 4,000 tons of lithium carbonate equivalent, 450 tons of silver, and 10,000 tons of molybdenum by 2025 [4].