ZHAOJIN MINING Shares Surge Over 8% as Oil Price Drop Eases Inflation Worries, Overseas Projects Boost Output

Stock News08-05 14:00

ZHAOJIN MINING (01818) shares jumped more than 8%, trading at HK$23, with a turnover of HK$355 million as of press time. The rally follows market reports that regional sources and US officials indicate the US, Iran, and Oman are "close to reaching" a temporary agreement to reopen the Strait of Hormuz, with the US hoping to announce the deal by Wednesday.

According to Guoxin Futures, positive progress in US-Iran talks has emerged, with US Treasury Secretary Bessent stating an agreement to reopen the Strait of Hormuz could be reached as early as Wednesday. This triggered a sharp drop in international oil prices, marginally easing market concerns about inflation. Expectations for multiple Federal Reserve interest rate hikes this year have been dampened, while the US dollar and Treasury yields have weakened, providing support for precious metals.

As of August 5, international gold prices broke above $4,100 per ounce intraday. A previous research report from CICC noted that ZHAOJIN MINING's offshore gold mine construction is progressing steadily. At Ruihai Mining, TBM tunneling is advancing efficiently, and the ore processing system has successfully completed a water trial, achieving initial industrial production capacity. The company holds a 70% stake in the offshore gold mine, which is expected to produce 15-20 tonnes of gold annually upon full operation, with attributable output of 10.5-14.0 tonnes.

Additionally, the company's overseas project pipeline is ramping up. The AGN mining area at the Abuja gold mine has commenced production smoothly, with an average annual output of 5.3 tonnes in the future, while the construction of the mining and processing project at Odeland Mining is accelerating at full speed.

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