Zijin Mining Group released its first-quarter financial report for 2026 on April 21. In the first quarter of 2026, the company achieved revenue of 98.498 billion yuan, representing a year-on-year increase of 24.79% and a quarter-on-quarter increase of 3.81%. Net profit attributable to shareholders was 20.079 billion yuan, surging 97.50% year-on-year and 44.31% quarter-on-quarter. Adjusted net profit reached 18.459 billion yuan, up 86.81% year-on-year and 11.22% quarter-on-quarter. The results were in line with expectations.
The company, a large multinational mining group listed on both A-share and H-share markets, is engaged in the exploration and development of metal mineral resources such as copper, gold, lithium, zinc, silver, and molybdenum globally. Adhering to its mission of "developing mining for the benefit of society," it is committed to providing low-carbon mineral materials for a better life. The first quarter of 2026 marked another record-breaking quarterly performance.
Year-on-year comparison (Q1 2026 vs. Q1 2025): Net profit attributable to shareholders increased by 9.913 billion yuan, primarily driven by a 17.716 billion yuan rise in gross profit. This growth was largely due to higher volumes and prices of key metal products, especially copper and gold. Additional profit contributors included a 2.342 billion yuan increase in fair value changes. Factors reducing profit included expenses and taxes (-2.285 billion yuan), other/investment income (-1.096 billion yuan, mainly due to reduced profits from partial suspension at Kamoa and lower stock investment gains), income tax (-4.195 billion yuan), and minority interest (-2.789 billion yuan).
Quarter-on-quarter comparison (Q1 2026 vs. Q4 2025): Net profit attributable to shareholders rose by 6.166 billion yuan. Key contributors were a 2.373 billion yuan increase in gross profit, supported by higher copper and gold prices, a 670 million yuan rise in other/investment income, and a 2.899 billion yuan increase in fair value changes, likely due to higher financial asset investment returns. A reduction in minority interest decreased profit by 879 million yuan.
Gross profit analysis: Copper and gold volumes and prices rose, while lithium carbonate began to contribute significantly. Overall, gross profit increased by 17.717 billion yuan year-on-year, with the comprehensive gross margin rising by 13.44 percentage points to 36.33%. The substantial growth was attributed to higher volumes and prices of copper and gold. Gross profit from copper and gold segments increased by 4.283 billion yuan and 10.277 billion yuan, respectively, year-on-year.
Quarter-on-quarter, detailed product-wise gross profit showed strong performance in mineral copper, gold, and silver. Gross profit from mineral products and smelting increased by 5.422 billion yuan, with mineral gold, copper, and silver contributing increases of 2.748 billion yuan, 2.450 billion yuan, and 619 million yuan, respectively. Mineral zinc gross profit rose by 71 million yuan, while smelted copper and zinc gross profit changed by -529 million yuan and +63 million yuan, respectively. Gross profit from other non-core products decreased by 3.050 billion yuan, likely due to a high base in Q4 2025 returning to normal levels in Q1 2026.
Sales volume: In Q1 2026, sales volumes of mineral gold, silver, copper, zinc, and lithium carbonate changed by -3.33%, +0.72%, -0.30%, -12.36%, and -17.42% quarter-on-quarter, respectively. Gold, silver, and copper sales aligned with production, while zinc and lithium carbonate sales were lower, possibly due to quarterly sales adjustments.
Prices: In Q1 2026, selling prices for mineral gold, silver, copper, zinc, and lithium carbonate increased by 13.86%, 60.89%, 13.89%, 13.76%, and 68.16% quarter-on-quarter, respectively, reflecting significant price hikes for major metals.
Costs: Costs for mineral gold, silver, copper, zinc, and lithium carbonate changed by -5.85%, -5.69%, -3.36%, +3.41%, and -14.01% quarter-on-quarter, respectively. Costs for gold, silver, and copper declined, ending several quarters of sequential increases. Lithium carbonate costs fell notably due to production ramp-up reducing unit costs.
Year-on-year, gross profit from mineral products and smelting increased by 15.580 billion yuan, while other non-core products rose by 2.137 billion yuan. The increase was mainly driven by mineral gold (+10.277 billion yuan) and mineral copper (+4.283 billion yuan). Mineral gold profit growth benefited from a 64.87% year-on-year price increase, a modest 9.90% cost rise, and a 22.84% sales volume increase. Mineral copper gains were due to a 34.80% price increase and an 11.87% cost increase.
Unit gross profit for mineral products rose both year-on-year and quarter-on-quarter, while smelting unit gross profit declined year-on-year. Unit gross profit for mineral gold, silver, copper, and zinc increased by 100.23%, 274.86%, 49.38%, and 57.71% year-on-year, and by 22.95%, 82.61%, 24.46%, and 30.62% quarter-on-quarter, respectively, as price increases far outpaced cost rises. Smelting profitability declined due to ore shortages and lower processing fees. Lithium carbonate unit gross profit surged 320% quarter-on-quarter to 62,000 yuan per ton, driven by lower costs and higher prices.
Expenses: Cost control continued, with period expense ratio declining quarter-on-quarter. Period expenses decreased by 930 million yuan, mainly due to an 1.121 billion yuan reduction in management expenses. Sales, management, financial, and R&D expenses were 255 million yuan, 3.130 billion yuan, 711 million yuan, and 364 million yuan, respectively, changing by -8 million yuan, -1.121 billion yuan, +390 million yuan, and -191 million yuan quarter-on-quarter. The management expense drop was due to high base effects from year-end salary payments in Q4 2025, while financial expenses rose as foreign exchange gains normalized.
The debt-to-asset ratio decreased by 0.2 percentage points to 51.4% at the end of Q1 2026 compared to year-end 2025. Total borrowings increased by 7.752 billion yuan to 98.610 billion yuan, with short-term borrowings rising by 8.822 billion yuan to 41.175 billion yuan and long-term borrowings decreasing by 1.070 billion yuan to 57.434 billion yuan. Non-recurring profits increased quarter-on-quarter, primarily due to higher net gains from fair value changes.
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