CITIC Securities released a research report stating that maintaining Zijin Mining's (02899) “buy” rating, the company's net profit for 2024 to 2026 is estimated to be 26.5 billion yuan, 32.17 billion yuan, and 37.92 billion yuan respectively, with corresponding earnings estimates of 1.01 yuan, 1.22 yuan, and 1.44 yuan per share, with a target price of HK$20. The bank said that continued epitaxial mergers and acquisitions provide solid support for the company's long-term growth, and it is expected that the company will benefit from the long-term rise in profits brought about by the sharp rise in the volume and price of copper and gold products.
The report mentioned that the company's mineral copper and gold production reached new highs last year. Coupled with rising product prices, performance recorded steady growth. As copper, gold, and lithium incremental projects continue to be released, the company's mineral copper and gold production is expected to achieve the goals of 8.9% and 8.6% growth, respectively, and continue to grow steadily this year, and the “two lakes and two mines” layout in the lithium sector is expected to usher in a phase of expansion. In addition, the increase in the cost of the Group's mineral copper and gold is mainly affected by factors such as depreciation of the exchange rate, the decline in selected grades, the rise in raw energy prices, and the increase in production of low-grade mines. However, the company's C1 mineral copper costs and mineral gold AISC costs are in the top 20% range in the world, which is low in the industry compared to leading global companies, fully demonstrating the company's ability to control costs.