Zijin Mining Group (2899) Q2 2024 earnings summary

Executive summary

• Operating income for H1 2024 reached RMB150.4 billion, up 0.06% year-over-year, with net profit attributable to owners at RMB15.1 billion, up 46.4% year-over-year; profit before tax increased 38.9% to RMB21.6 billion.

• Net profit after non-recurring items was RMB15.43 billion, up 59.8%.

• Net cash flows from operating activities increased 27.6% to RMB20.4 billion; total assets reached RMB368.9 billion, up 7.6% from year-beginning; net assets attributable to owners RMB126.4 billion, up 17.6%.

• Debt-to-asset ratio improved to 56.7%, down 3 percentage points; gearing ratio decreased to 1.307 from 1.479 at year-end 2023.

• Major breakthroughs in overseas financing: USD2 billion convertible bonds and USD500 million H shares issued, oversubscribed, boosting market capitalization above RMB500 billion.

Financial highlights

• Mine-produced copper output was 519,000 tonnes (+5.3% YoY), gold 35.4 tonnes (+9.5% YoY), zinc (lead) 222,000 tonnes, and silver 210.3 tonnes.

• Profit before tax was RMB21.6 billion (+38.9% YoY).

• Overall gross profit margin increased to 19.2% (+4.5pp YoY); mining segment gross margin reached 57.3%.

• Cash dividend distribution for 2023 was RMB5.27 billion, with an interim dividend of RMB2.66 billion for 2024; cumulative dividends since listing reached RMB47.8 billion.

• Operating costs were RMB121.6 billion (down 5.2% YoY).

Outlook and guidance

• The company targets annual production by 2028 of 1.5–1.6 million tonnes copper, 100–110 tonnes gold, 550–600 thousand tonnes zinc (lead), 600–700 tonnes silver, 250–300 thousand tonnes lithium (LCE), and 25–35 thousand tonnes molybdenum.

• Major economic indicators are expected to rank among the top 3–5 globally by 2028 and aims to achieve 2030 targets by 2028.

• Expects continued volatility in metal prices; copper and gold prices supported by supply constraints and safe-haven demand, while lithium faces ongoing oversupply and price pressure.