Pacific Securities has issued a research report initiating coverage on WANGUO GOLD GP (03939) with a "Buy" rating. The firm forecasts the company's net profit attributable to shareholders for 2025-2027 to be 1.46 billion, 3.02 billion, and 4.14 billion yuan, respectively. The company possesses the world-class Jinling Mine, indicating substantial long-term growth potential. Its deep collaboration with Zijin Mining Group (02899) is expected to support sustained growth in future gold production.
Key points from Pacific Securities are as follows:
**Recent Developments** On January 29, 2026, the company released its 2025 earnings forecast, projecting a net profit attributable to shareholders of 1.4 to 1.5 billion yuan, representing a year-on-year increase of 143% to 161%. For the second half of 2025 alone, the net profit is estimated between 800 million and 900 million yuan, a surge of 149% to 180% compared to the same period last year and a 33% to 50% increase from the first half of 2025. This profit growth is primarily attributed to an increase in gold sales volume and a rise in the price of gold.
**Significant Expansion Potential at Jinling Mine** WANGUO GOLD GP holds an 88.2% stake in the Jinling Mine, located in the Solomon Islands in Oceania. Guadalcanal, the largest island, is rich in gold resources, making the Jinling Mine a major global gold asset. In January 2025, a subsidiary of WANGUO GOLD GP, Jinling Mining, signed a contract with Zijin (Xiamen) Engineering Design Co., Ltd. for a feasibility study on a new expansion project at the Jinling Mine. This project aims to add an annual capacity of 10 million tonnes, bringing the total capacity to 13 million tonnes per year. The primary products will be gold ingots (with a gold grade of 80%) and flotation gold concentrate (with a gold grade of 25 grams per tonne), underscoring the mine's considerable potential for increased production.
**Continuous Growth in Daily Flotation Capacity** In the first half of 2025, the Jinling Mine's mining and ore processing volumes were 1.98 million tonnes and 1.27 million tonnes, respectively, marking year-on-year increases of 347% and 12%. The significant jump in mining volume was mainly due to frequent rainfall in the first half of 2024 that hampered operations. By the end of June 2025, the flotation capacity had been increased to 10,000 tonnes per day. The company plans to install a new 500-cubic-meter flotation machine before the end of 2025, which will further boost the flotation capacity to 12,000 tonnes per day. This continuous growth in daily flotation capacity is instrumental in driving the steady increase in the company's gold production.
**Deep Collaboration with Zijin Mining Beneficial for Long-Term Development** On September 22, 2024, WANGUO GOLD GP entered into a subscription agreement with Jinshan (Hong Kong) International Mining Co., Ltd., a wholly-owned subsidiary of Zijin Mining Group. Jinshan Mining subscribed to 166 million new shares of the company at HKD 8.33 per share. As of the first half of 2025, Zijin Mining held a 17.57% stake in WANGUO GOLD GP. This deep cooperation facilitates the sharing of overseas mine development technology and operational expertise, which is advantageous for the long-term development of the Jinling Mine project.
**Risk Warning** Potential risks include a significant decline in gold prices, slower-than-expected project progress, and more aggressive-than-anticipated monetary tightening by the U.S. Federal Reserve.
Comments