Goldman Sachs has issued a research report indicating that it has lowered its profit forecast for Zijin Mining (02899) by 1% to 3% for the 2026–2027 period, attributing the revision to increased per-unit mining costs resulting from rising energy prices. The firm also reduced the target price to HK$51 while maintaining a "Buy" rating. Goldman Sachs 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 reached RMB 18.9 billion, an 88% year-on-year increase, aligning with market forecasts. The bank expects the company to maintain strong growth momentum, supported by rising gold and copper prices, along with production growth of 6% to 12%. Recurring profit for 2026 is projected to grow by 53%, reaching RMB 77.9 billion.
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