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, resulting in record performance and significant growth in mineral output, especially copper and gold.

• Global rankings in copper and gold output improved to number four and six, respectively, with substantial expansion in resources and reserves and rapid progress in key project construction.

• 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.

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

• Share prices rose 24% (A-share) and 30% (H-share); a $2.5 million H-share refinancing was the largest mining deal in Hong Kong last year.

Financial highlights

• Revenue increased 3.5% year-over-year to RMB 303.6 billion; copper contributed 45%, gold 30%, zinc 4.6%, and other segments 20%.

• Total profits reached RMB 48.1 billion, up 53.7%; net attributable profit was RMB 32.1 billion, up 51.8%.

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

• Debt ratio dropped by 4.47% to 55.2%; net debt to EBITDA fell by 28.6%.

• EPS was RMB 1.21, up 51.3% year-over-year; cash dividend payout increased by 53.5%.

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, 10,000 tons molybdenum.

• Focus on quality, cost, and profitability to outperform phase two strategic targets and unlock incremental growth.

• Strategic focus on mergers, acquisitions, reserve increment, and production ramp-up, aiming to achieve 2028 targets for copper, gold, and lithium two years ahead of schedule.

• Continued expansion in copper, gold, and lithium projects, leveraging AI and digital technologies for efficiency.

• Plans to further lower debt-to-asset ratio, enhance global operational management, and strengthen ESG governance.