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, and profit before tax at RMB21.6 billion, up 38.9%.

• 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, and net assets attributable to owners RMB126.4 billion.

• Major overseas financing included USD2 billion convertible bonds and USD500 million H-share issuance, both oversubscribed.

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 rose to 57.3% (+5.6pp YoY).

• Cash dividend distribution for 2023 was RMB5.27 billion, with an interim dividend of RMB2.66 billion for 2024.

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.

• Industry trends suggest continued volatility in metal prices, with copper and gold expected to remain strong.