Zijin Mining Group Co: Strong Buy Rating Backed by Record Performance and Strategic Growth Initiatives

Analyst Eunyoung Lee from DBS maintained a Buy rating on Zijin Mining Group Co (ZIJMF – Research Report) and keeping the price target at HK$24.50.

Eunyoung Lee has given his Buy rating due to a combination of factors that highlight Zijin Mining Group Co’s strong performance and growth potential. The company achieved record high quarterly results in the first quarter of 2025, surpassing expectations due to increased average selling prices and sales volume growth. This momentum is expected to continue into the second quarter, driven by elevated gold prices and sales volume, which could result in over 10% year-over-year growth in gross profit.
Zijin Mining’s robust growth is further supported by its strategic mergers and acquisitions and operational capabilities, making it a leading player in the global mining industry. The company ranks highly in terms of copper and gold reserves and output, with significant earnings growth projected for 2025, backed by increased sales volume and higher metal prices. Additionally, Zijin’s ventures into lithium projects are anticipated to be future growth drivers. The valuation of the company’s shares is based on a discounted cash flow model, with major risks including metal price volatility and geopolitical factors.