2899 Zijin Mining: A Global Gold PowerhouseRecommendation: Buy
Target Price: HK$21.00
Current Share Price: HK$18.56
Valuation: 2024F PE of 17x (+2SD)
Gold Output: Targeting 85 tonnes in 2025 and 100-110 tonnes by 2028
Zijin Mining is among the top 10 global miners in terms of attributable gold reserves, positioning itself as a global powerhouse in gold production. The company aims to achieve mine-produced gold output of 85 tonnes by 2025 and 100-110 tonnes by 2028, significantly enhancing its earnings profile. Zijin’s production plans indicate a move towards a more balanced earnings contribution.
The company’s gold all-in-sustaining cost was the second-lowest globally in 2023 at US$1,161 per ounce. This cost advantage, coupled with Zijin’s ambitious production targets, provides a compelling growth narrative. With a valuation pegged at a 17x 2024F PE, the stock offers a strong upside potential.
