GTHT has issued a research report stating that it expects ZIJIN GOLD INTL (02259) to report earnings per share of US$1.05, US$1.25, and US$1.62 for 2026, 2027, and 2028, respectively. Using a 2026 PE multiple of 20x based on comparable companies for valuation, the brokerage assigns a 2026 target price of HK$163.8 (based on an exchange rate of 1 USD to 7.8 HKD), initiating coverage with an "Overweight" rating. The brokerage believes that both organic and inorganic growth will drive production increases, with gold output and financial performance set to be delivered as scheduled.
The main points from GTHT are as follows:
Global gold mining footprint with strong organic growth momentum
The company has established a global portfolio of high-quality gold mines, with operations spanning Central Asia, Africa, Australia, and South America, demonstrating outstanding capabilities in global mining operations. As of 2025, the company's gold reserves (proven and probable) total 917 tonnes, and the company added 45.6 tonnes of attributable gold resources in 2025, indicating abundant gold resources. Core mines such as Ruiguoduo, Akim, and Rosebel possess strong organic growth momentum and are expected to continue contributing incremental output from 2026 to 2028. The Norton Gold Fields' new 2-million-tonne-per-year low-grade heap leach resource comprehensive utilization project is scheduled for completion and trial production in June 2026. The Ruiguoduo new 10-million-tonne-per-year mining and processing technical renovation project is expected to commence production in the third quarter of 2028. The Rosebel Gold Mine's plant expansion of a 10-million-tonne mining and processing project is expected to be completed in the second quarter of 2028, while the newly built Saramacca 4-million-tonne-per-year mining and processing project is expected to be completed in the third quarter of 2028. The Akim Gold Mine's mining and processing system expansion and tailings storage facility expansion project is progressing steadily; upon completion, annual processing capacity will increase from 8.5 million tonnes to 13 million tonnes, with the project expected to be completed in the third quarter of 2028. The Jilau-Taror Gold Mine's new 2-million-tonne-per-year processing plant for low-grade resources will have a total processing capacity of approximately 600 tonnes per day upon completion, with the project expected to commence production in the first quarter of 2028.
Strong inorganic acquisition capabilities with continuous mining portfolio expansion
In April and October 2025, the company acquired the Akim Gold Mine in Ghana and the Ruiguoduo Gold Mine in Kazakhstan. In July 2025, the company completed the restructuring of the Porgera Gold Mine (joint venture). In the first half of 2026, the Akim, Ruiguoduo, and Porgera gold mines produced 4 tonnes, 3.3 tonnes, and 1.3 tonnes, respectively, with the Akim Gold Mine increasing by 2.8 tonnes year-on-year. Backed by Zijin Mining, the brokerage believes that the company's future inorganic acquisitions will continue to materialize.
Well-controlled costs with excellent operational capabilities
In the first half of 2026, the AISC costs across the company's mines remained stable. The Rosebel Gold Mine and Norton Gold Fields reported AISC of US$1,701 and US$2,146 per ounce, respectively, in the first half of 2026, both declining year-on-year. The Left Bank, Aurora, and Jilau-Taror gold mines reported AISC of US$2,038, US$1,682, and US$1,298 per tonne, respectively, in the first half of 2026, all increasing year-on-year. The company's gold production costs remain relatively stable, reflecting excellent operational capabilities.
Risk warnings: New project commissioning may fall short of expectations, and gold prices may experience significant declines.
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