HONG KONG, Sep 13, 2022 – (ACN Newswire) – Under the market divergence, the long-term allocation value of gold stocks becomes more prominent.

In September when over half of the year has passed, with the frequent "black swan" incidents taking place in 2022, the downward pressure and market volatility of the global economy has become more severe than in previous years. In such a capital winter, gold stocks are expected to become one of the most valuable assets for investment to hold for an extended period of future time.

On the one hand, from a macro perspective, there have been more and more catalyst factors that drive the price of gold to rise recently, meanwhile the logic behind the medium and long-term upward trend of gold prices is also strengthening. On the other hand, in terms of valuation, the current gold industry is at the bottom value of the ten-year cycle. Hence the gold industry's profitability and return level are now maintained at a stable and optimized state, providing effective investment values.

When it comes to selecting individual stocks, Zhaojin Mining (01818), listed in HKSE, deserves your attention.

In addition to the expectation that the rising gold price will boost the company's profits, Zhaojin Mining's endogenous growth momentum is also very strong. From the perspective of Zhitong Finance APP, the biggest attraction of Zhaojin Mining itself is Haiyu goldmine.

Zhaojin Mining's two main mines used to be Dayingezhuang goldmine and Xiadian goldmine, with reserves of 229.2 tons and 108.6 tons, respectively. In 2015, the company acquired Haiyu goldmine, the largest single gold mine in China, with reverses of 562.4 tons, getting Zhaojin's total reserves to be over 1,000 tons.

As for the current progress, Haiyu goldmine has obtained a 15-year mining license issued by the Shandong Provincial Department of Natural Resources in July 2021. According to the disclosed information, the area of mineral exploration right in Haiyu is 17.91 square kilometers. As of December 2020, it has retained 562.37 tons of mineral reserves, with an average ore grade of 4.20 grams per ton.

It is also understood that Zhaojin has sunk a total investment of RMB 7.3 billion to the Haiyu goldmine project, with a designed mining goal of 3.96 million tons per year. The mine is set to start production in 2023 and to achieve its target production in 2-3 years, with an annual output of 16-20 tons after the project is completed. For reference, Zhaojin Mining's gold output in 2021 was 12.6 tons. In other words, Zhaojin Mining's annual output will double after Haiyu goldmine reaches its designed production capacity.

On the cost side, thanks to the large production scale and high ore grade of Haiyu goldmine, the overall gold cost is expected to be as low as RMB 100/gram after full establishment of production, holding obvious advantages. For reference, Zhaojin Mining's overall gold cost in the first half of this year was about RMB 193.98/gram.

It is also worth mentioning that the linear distance between Haiyu goldmine and the Zhaojin port is only 45 kilometers, which can generate a significant regional synergistic effect in the future.

Given all the above, after the production Haiyu goldmine is completed, the overall profitability of Zhaojin Mining's goldmining business will usher in a qualitative leap forward.

According to Zhaojin Mining's latest disclosure, the design of the safety facilities of Haiyu goldmine has passed the review of the relevant departments earlier this year, and the project has recently obtained the approval of the "Safety Three Simultaneousness". Therefore, the construction of the project will soon be carried out.

In summary, Zhitong Finance APP believes that now is the perfect time to enter the left side trading of Zhaojin Mining. As we all know, the logic that drives the rise of cyclical stock prices can be divided into two categories: one is beta – rising commodity prices driving company profits and thus the stock prices; the other is alpha – stock prices and company profits driven by other factors besides commodity price fluctuations, such as an increase of an individual company's market share, an increase in product yield, etc.

Long-term investors clearly prefer alpha logic to beta logic, as alpha is trendier and lasts longer.

At present, Zhaojin Mining undoubtedly has investment opportunities with a strong alpha under the resonance of two advantages: the expectation of the rising gold price, as well as the upcoming stable increase of gold production contributed by Haiyu goldmine. Moreover, if we consider the fact that Zhaojin's share price has been unsatisfying in recent months due to the decline of the overall Hong Kong stock market, this is an even more rare opportunity for investors to go long.


Copyright 2022 ACN Newswire. All rights reserved. http://www.acnnewswire.com

HONG KONG, Aug 16, 2022 – (ACN Newswire) – Zijin Mining Group Co., Ltd. (2899.HK; 601899:SH; "Zijin Mining" or "The Company") announced its interim results for the six months ended 30 June 2022 ("Reporting Period"). The Company realised RMB132.46 billion in operating income, up 20.57% year-on-year, while net profit attributable to owners surged to RMB12.63 billion, representing an increase of 89.95% compared with the same period last year. The profit increase was largely driven by the completion of major mine projects, including Serbia Zijin Mining, Kamoa Copper in the Democratic Republic of the Congo (DRC) and Julong Copper in China, which have commenced production and reached their designated production capacities on schedule. During the reporting period, the production volume of mine-produced copper and mine-produced gold amounted to 410,000 tonnes and 27 tonnes, representing an increase of approximately 70.47% and 22.79%, respectively.

Zijin Mining 2022 Interim Results Highlights:

For the six months ended 30 June 2022, the Group realised an operating income of RMB132.46 billion, representing an increase of 20.57% compared with the same period last year (same period last year: RMB109.86 billion).

For the six months ended 30 June 2022, the Group realised a profit before tax of RMB18.57 billion, representing an increase of 61.90% compared with the same period last year (same period last year: RMB11.47 billion).

For the six months ended 30 June 2022, the Group realised a net profit attributable to owners of the listed company of RMB12.63 billion, representing an increase of 89.95% compared with the same period last year (same period last year: RMB6.65 billion).

As of 30 June 2022, the Group's total assets was RMB271.57 billion, representing an increase of 30.19% compared with the beginning of the year (beginning of the year: RMB208.60 billion).

As of 30 June 2022, the Group's net assets attributable to owners of the listed company was RMB77.47 billion, representing an increase of 9.06% compared with the beginning of the year (beginning of the year: RMB71.03 billion).

CHEN Jinghe, Chairman of Zijin Mining, commented, "Our strong performance in the first half of 2022 is attributable to the strengths of the Company's global growth strategy. By leveraging Zijin Mining's strong financial resources and track record of mining expertise, we will continue to seek opportunities and add to our global asset mix. As the world races towards a 'net-zero' transition, we have also allocated resources globally to increase our competitiveness in new energy minerals. Looking forward, Zijin Mining will continue to work closely with in-country local communities and government authorities to ensure our mission of 'Mining for a Better Society'."

Heralding new energy minerals boom

With a 15% equity stake in the DRC Manono Lithium-tin project and the completed acquisition of Neo Lithium Corp and its flagship 3Q Lithium Project in Argentina, the Company has continued to prioritize new energy minerals such as copper, lithium and other metallic minerals. Zijin Mining currently owns over 10 million tonnes of lithium carbonate equivalent resources, with long-term development plans to boost annual production capabilities to over 150,000 tonnes per year, laying the foundation for becoming a leading lithium producer and meeting growing demand amid the global 'clean energy transition'.

Construction at the 3Q Lithium Project has accelerated and first-stage trials of brine mining and solar evaporation have been concluded. Completion of the 3Q Project and commercial production is planned for the end of 2023. The Company has also accelerated the construction and development of the Lakkor Tso project and Xiangyuan project, with the Company having finalised a 70% acquisition of the former and is near completion on a 71% acquisition of the latter.

Increased investment to tackle global climate change

During the reporting period, the Company prioritized strict controls of pollution emissions. SO2 and NOx emissions intensity by revenue decreased by 25.59% and 4.22%, respectively. The Company's investment in environmental protection measures also continued to increase during the first half of 2022, amounting to RMB577 million, of which RMB271 million was used for ecological restoration, representing an increase of 67% compared with the same period last year.

Zijin Mining's efforts at the Kamoa-Kakula Mining Complex in the DRC have also ensured the project is on track to become one of the world's 'greenest copper producers'. With RMB120 million already invested as of the end of 2021, the Company continues to enhance and invest in the rehabilitation of the Mwadingusha, Inga G25 and related networks to realise the overall electrification of the mining fleet, and further reduce the GHG emissions per tonne of copper produced from the project.

During the reporting period, the Company obtained a 25.04% equity share in Fujian Longking Co., Ltd. (Longking) and secured controlling rights through corporate governance and other arrangements. Zijin Mining aims to leverage this new acquisition's leading environmental management service expertise to further minimize the Company's global carbon footprint; and promote Longking's strategic 'environmental protection + new energy' transformation to achieve greater industrial synergy.

During the reporting period, the Company continued its biodiversity and restoration efforts, with a total area of restored vegetation amounting to 7.92 million m2, and over 839,000 trees planted.

Mining for a Better Society

Adhering to the United Nations Sustainable Development Goals, Zijin Mining remains steadfast in promoting its core value of 'Mining for a Better Society'. The Company's efforts have been widely applauded for its contributions to the social and economic development of local communities and host countries where projects are located.

With global operations, the Company has continued to deliver on its social development and responsibility commitments, including the USD4.4 million development plan for the Musonoie community in the DRC and support of the 'Sustainable Livelihoods Program' at the Kamoa-Kakula Mining Complex providing approximately 12,000 community members with clean water. Zijin Mining also supports the coffee growers of Western Antioquia, Colombia, through training, construction of infrastructure and maintenance of coffee plantations, helping coffee-growing families increase their scale and ability in 'going abroad'. In Serbia, the Company also maintains investments for environmental protection and community support, amounting to over USD200 million since 2018. During the reporting period, the Company also launched the 'For a Better Future Program' to support local Serbian students, by offering scholarships and providing school supplies.

ZOU Laichang, President of Zijin Mining and Director of the ESG Management Committee, commented, "We have made significant steps towards our goal of 'Mining for a Better Society' as Zijin Mining strives for even higher-quality sustainable development. The Company actively promotes local industries, local employment and local procurement policies across our global network, aiming to contribute to global economic growth and supporting the betterment of all people in all countries."

* USD1 = RMB6.7423

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