Goldman Sachs has released a research report stating that, due to rising energy prices leading to increased per-unit mining costs, it has lowered its profit forecast for Zijin Mining (02899) for the 2026-2027 fiscal years by 1% to 3%. The investment bank has also reduced the target price to HK$51 while maintaining a "Buy" rating. The firm views the current valuation as attractive, noting that the implied copper price level is significantly below the spot price.
Zijin Mining's first-quarter performance met expectations, with strong sales growth. Recurring net profit for the first quarter was RMB 18.9 billion, an 88% year-on-year increase, aligning with market expectations. The bank anticipates the company will maintain strong growth momentum, benefiting from rising gold and copper prices, coupled with a production increase of 6% to 12%. Recurring profit for 2026 is projected to grow by 53%, reaching RMB 77.9 billion.
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