DBS Bank maintains a "Buy" rating on Zijin Mining, with a target price raised to 55 yuan

DBS published a research report stating that active mergers and acquisitions and operational capabilities drive Zijin Mining (02899.HK) growth. The company ranks fifth and fourth globally in copper reserves and mined copper production, respectively, and sixth in gold reserves and mined gold production in 2024. Its strong market position is achieved through active mergers and acquisitions, as well as its strong operational capabilities in mining, backed by industry expertise and experience. In terms of performance, the company's copper C1 cost is expected to decrease by 14% year-on-year to USD 0.93 per pound in 2024, placing it in the top 20% globally, while maintaining competitive sustainable costs among gold miners.

Optimism regarding copper and gold prices will support its profit growth, with the bank expecting a compound annual growth rate of 44% in profits by 2027. The optimistic sentiment towards gold is reinforced by central banks increasing gold reserves and speculative demand related to exchange-traded funds. On the other hand, due to mining disruptions, declining grades, and sustained demand from energy transition and artificial intelligence trends, the copper market is expected to face intensified supply shortages. Therefore, the bank anticipates that the average gold price in 2026 and the London Metal Exchange copper price will rise by 39.3% and 12.1%, respectively, to USD 4,700 per ounce and USD 11,000 per ton. The bank maintains its "Buy" rating on Zijin Mining and raises the target price for H shares to HKD 55