Macquarie raises Zijin Mining's target price to 40 yuan, profit forecast upgraded due to gold prices

Macquarie published a report indicating that Zijin Mining (02899.HK) has updated the copper production guidance for its key copper mine project Kamoa-Kakula for 2026 and 2027, adjusting it to 380,000 to 420,000 tons and 500,000 to 540,000 tons, respectively, alleviating concerns over production disruptions earlier.

The firm raised its gold price forecasts for 2025 to 2027 by 2%, 22%, and 35%, respectively, and copper price forecasts by 2%, 13%, and 0%. At the same time, it raised Zijin Mining's earnings forecasts for the same period by 20%, 61%, and 35%, respectively; Macquarie increased Zijin's target price by 75% to HKD 40, equivalent to a forecasted price-to-earnings ratio of 9.6 times for next year, maintaining an "outperform" rating