Zijin Mining (02899.HK): Diversified Expansion Drives Long-Term Growth, Demonstrating Resource Integration Advantages

$ZIJIN MINING(02899.HK) Zijin Mining Group released its third-quarter results, with management clearly stating that the annual gold production target will reach 100-110 tons by 2028, and capacity will continue to expand through technological upgrades and acquisitions of domestic and overseas mines. As a newly listed company, Zijin Gold International is expected to produce 50 tons of gold this year, and is expected to reach the 100-ton milestone by 2030. With the gradual increase in production at mines such as Shanxi Zijin and Xinjiang, as well as the expansion of overseas acquisitions, Zijin is expected to consolidate its leading position in the global gold industry.

In terms of copper and lithium, Zijin is actively deploying major mining areas. Benefiting from the increased demand from the AI and new energy industries, copper prices are supported, but the company also faces challenges such as supply disruptions and rising fixed costs, requiring continuous optimization of resource efficiency and cost control. In the next few years, projects such as Kamoa, Julong, and Zhunuo are expected to come into production, bringing annual copper production growth of millions of tons to the group and further improving profitability. The lithium sector is also accelerating its penetration, with salt lake projects such as "Lakto Tso" steadily releasing capacity, becoming a new profit growth point for the group.

Overall, with its global strategy, rapid capacity release, and diversified resource layout, the company is seizing the upward cycle of the industry and is expected to benefit from the boom in commodities such as gold, copper, and lithium in the coming years. However, potential risks such as metal price fluctuations, project expenditures exceeding expectations, and cost inflation should be noted. Investors are advised to pay attention to the progress of capacity implementation and the sustainability of profit growth.

Source: KGI Securities