Zijin Mining Group (2899) Q4 2024 earnings summary

Executive summary

• 2024 marked the start of a new Five Year Plan, emphasizing quality improvement, cost control, and profitability amid complex challenges.

• Operating income reached RMB303.64 billion, up 3.49% year-over-year, with net profit attributable to owners rising 51.76% to RMB32.05 billion and profit before tax up 53.66% to RMB48.08 billion.

• Achieved record mineral output: copper production reached 1.07 million tons, gold output 73 tons, with global rankings expected to rise.

• Major acquisitions included the La Arena Copper and Gold Mine in Peru and a 25% stake in Zangge Mining, enhancing copper and lithium resources.

• Advanced ESG initiatives, including green development, increased social contributions, and a dividend payout exceeding RMB10 billion for the first time, representing 31.5% of net profit.

Financial highlights

• Revenue rose 3.5% year-over-year to RMB303.6 billion; copper contributed 45%, gold 30%, zinc 4.6%, and other segments 20%.

• Total profits reached RMB48.1 billion, up 53.7%; net attributable profit was RMB32.1 billion, up 51.8%.

• EBITDA reached RMB63.24 billion, up 36%; net cash flows from operating activities were RMB48.86 billion, up 33%.

• Basic EPS was RMB1.21, up from RMB0.80; overall gross profit margin rose to 20.37%, with mine-produced products at 57.97%.

• Debt ratio dropped to 55.2% from 59.7%, and net debt to EBITDA decreased by 28.6%.

Outlook and guidance

• 2025 production targets: 1.15 million tons copper, 85 tons gold, 440,000–570,000 tons zinc/lead, 40,000–300,000 tons LCE, 450–700 tons silver, and 10,000 tons molybdenum.

• Strategic focus on unlocking potential at existing assets, accelerating copper, gold, and lithium projects, and maintaining cost competitiveness.

• Continued commitment to ESG, digital transformation, and AI integration for operational efficiency.