Zijin Mining Group Company Ltd (ASX: ZIJ) has released its preliminary performance figures for the first half of 2026, forecasting a net profit attributable to shareholders of 39.1 billion yuan, a substantial 68% year-on-year increase.
The company has maintained its strategic focus on gold, copper, and lithium, with steady capacity expansion across its core mineral assets and the rapid emergence of new growth drivers.
The standout feature of this interim update is the significant contribution from lithium, now established as a key growth pillar alongside the company's consistently strong performance in gold, copper, zinc, and silver.
This, combined with notable revenue gains from rare and precious metals like molybdenum, tungsten, and tin, as well as by-products such as sulfur concentrate and sulfuric acid, has acted as a powerful catalyst for the company's robust and high-paced earnings growth.
According to the company's announcement, mineral gold production for the first half is estimated at 47 tonnes, marking a 15% increase, while mineral copper output reached 534,000 tonnes, representing 5% growth after excluding production from the Kamoa copper mine.
With lithium prices trending upward, the company's key lithium projects, including the Manono mine which commenced heavy media separation production in May 2026, are coming online at an opportune time.
The lithium segment achieved production of 43,000 tonnes of lithium carbonate equivalent in H1, a remarkable surge of 514% year-on-year.
Rising prices for rare and precious metals have also enabled Zijin to ramp up production of tungsten, molybdenum, and tin, leading to a substantial expansion in gross profit margins.
Concurrently, the company's new management team has focused on enhancing internal operations and building a stronger foundation to sharpen its competitive edge.
A key initiative is the progressive introduction of electric mining trucks across its domestic and international operations, with the first batch of 140-tonne electric trucks from Zijin Longjing already showing significant efficiency gains at sites like the Zijinshan and Julong mines.
Data indicates these electric trucks have reduced accounting costs per tonne-kilometer by approximately 29% compared to diesel-powered vehicles, delivering both economic and environmental benefits.
The company aims to fully replace its traditional diesel truck fleet with new-energy vehicles within three years, with the Julong mine's Zhibula project targeting fully unmanned operation by the end of this year.
At the Laguo resource, a dedicated new-energy power grid has slashed electricity costs from 3 yuan per kilowatt-hour for diesel generation to 0.74 yuan, cumulatively saving over 1 billion yuan since its commissioning.
Looking to the second half of the year, the company plans to accelerate technical upgrades and capacity expansion at several major projects to drive further production and efficiency gains.
Within the gold segment, key mines under ZIJIN GOLD INTL such as Rosebel, Akim, and Riguodo are advancing their expansion plans.
In copper, the Julong mine is steadily increasing output, and the Juno copper project is scheduled for commissioning within the year.
For lithium, the Manono mine's first-phase smelter is slated for completion in December 2026, while projects like the 3Q Salt Lake, Laguocuo Salt Lake, and Xiangyuan hard-rock lithium mines continue their production ramp-up.
The rapid scaling of lithium production is set to establish this segment as another core profit engine for the company.
In the rare metals sector, construction has begun on the Shapinggou molybdenum concentrator, which is expected to produce 22,000 tonnes of molybdenum annually at full capacity.
The company also plans to systematically assess resources in tailings ponds, waste dumps, and surface stockpiles to enhance the recovery and monetization of rare metals and by-products.
On July 10th, following the earnings forecast, Zijin Mining announced its interim profit distribution plan for 2026, proposing a cash dividend of 4.2 yuan per 10 shares, amounting to approximately 11.1 billion yuan.
Enhancing returns for investors and stakeholders has been a priority for the new management, with this interim dividend payment being issued significantly earlier than in previous years to allow shareholders to share in the company's development results sooner.
Zijin has established a long-term shareholder return mechanism, committing to a cumulative cash dividend payout over the 2026-2028 period of no less than 35% of the total distributable profits for those three years.
Market analysts view the early interim dividend as a move to swiftly translate policy commitments into tangible returns for shareholders, reflecting the company's strong profitability and ample operating cash flow reserves.
As its performance has grown exponentially in recent years, Zijin has consistently raised its dividend levels.
In 2024, its total cash dividend exceeded 10 billion yuan for the first time, ranking 38th among A-share listed companies for cash payouts.
For the 2025 fiscal year, the company distributed a total of 15.922 billion yuan through interim and final dividends.
Following the completion of a 10.1 billion yuan payout for 2025 in late June, combined with this new 11.1 billion yuan plan, Zijin is set to distribute a total of 21.2 billion yuan to investors within the 2026 calendar year.
Comments