As international gold mining giants face declining production, Chinese mining companies are turning high gold prices into performance leverage through aggressive overseas acquisitions and capacity expansion.
According to the latest forecast from Bloomberg, driven by high gold prices and proactive expansion plans, Chinese gold mining companies are expected to continue outperforming their global peers in 2026. Companies like Zijin Gold International Co., Shandong Gold, and Chifeng Gold are steadily moving towards profit peaks in 2026. Earlier, in 2025, soaring gold prices and increased production had pushed these companies' profits to historic highs.
Earlier this year, supported by geopolitical tensions and safe-haven demand, gold prices briefly surpassed $5,000 per ounce. Although recent rebounds in the dollar, rising oil prices, and inflation concerns triggered by the Middle East conflict have led to a correction in gold prices—falling over 10% since February 28—the widespread economic uncertainty and risk aversion may still provide support for gold prices.
<h2>Chinese Mining Companies Expand Against the Trend</h2>
While international competitors face declining production and limited project reserves, Chinese gold mining companies are pursuing higher output and actively acquiring overseas mines.
One of the most notable transactions is Zijin Gold's acquisition of Canada's Allied Gold for CAD 5.5 billion (approximately USD 4 billion), which operates mines in Africa. This expansion move sharply contrasts with Western competitors like Newmont Corp. and Fresnillo Plc, which are cutting production this year.
&#34;Chinese mining companies are snapping up mines that global giants are avoiding,&#34; said Eric Xiao, head of sales at CMC Markets Singapore.
Although Xiao added that these transactions come with challenges, including local instability and operational risks, HSBC's China materials analyst Howard Lau pointed out that Chinese producers are experiencing record profit margins, which will provide strong operational leverage.
&#34;With recent completions or new acquisitions expanding production, along with organic growth achieved through project expansions, there is still room for profit growth in 2026,&#34; Lau stated.
<h2>Domestic Mining Companies Perform Well</h2>
Zijin Gold is set to release its first annual report since its IPO last September on March 20. The company has previously hinted at strong performance in 2025, with preliminary data showing net profit growth of more than twofold. Bloomberg's estimated data indicates that its profits are expected to double again this year.
Competitor Shandong Gold reported a net profit increase of up to 66%, with market consensus expecting a 70% growth in 2026. While Chifeng Gold may have achieved an 81% growth last year, its growth rate is expected to slow to 31% this year.
<h2>International Giants Face Challenges</h2>
In contrast, while European and American gold mining companies have reported robust performance in recent weeks, concerns over declining production have weighed on market sentiment
Hochschild Mining, a mining company listed in the UK, benefited from the &#34;extraordinary rise&#34; in precious metal prices, with annual profit growth exceeding analysts' expectations. Peer Fresnillo reported an 81% surge in its earnings before interest, taxes, depreciation, and amortization (EBITDA).
In the United States, the world's largest gold miner, Newmont, announced record quarterly profits, and Canadian Barrick Mining Corp.'s earnings also surpassed expectations. However, due to concerns over capital expenditures and a slowdown in production, the stock prices of both companies fell after the earnings announcements.
Newmont expects a reduction in production by 2026, partly due to planned upgrades at some of its managed mines and a decline in output from its two joint ventures with Barrick Mining.
Hochschild's production also saw a slight decline due to planned work at one of its mines, while Australia's Northern Star Resources Ltd. experienced a significant drop in stock price after lowering its production guidance.
Expenditures are another concern. Fresnillo's capital expenditure budget for 2026 is higher than expected, leading to a drop in stock price as investors question when these investments will translate into growth.
&#34;The upside may depend on continued capital constraints and higher shareholder returns,&#34; Bloomberg Industry Research analysts Grant Sporre and Umesh Agarwal stated. They added that rising costs could pressure mining companies' profit margins in the second half of this year

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Driven by high gold prices and active overseas mergers and acquisitions, Chinese gold mining companies such as Zijin Mining and SD-GOLD are expected to achieve record profits in 2026, potentially outperforming their global peers. In contrast to the counter-cyclical expansion of Chinese mining companies, international giants like Newmont and Barrick are facing challenges of declining production and increasing capital expenditures, leading to pressure on their stock prices. HSBC analysts believe that new acquisitions and expansion projects will provide strong operational leverage for Chinese mining companies

- As international mining giants face declining output, Chinese mining companies leverage high gold prices through aggressive overseas acquisitions and capacity expansion.  
- Leading firms like Zijin Mining International and Shandong Gold are projected to outperform their global counterparts in 2026, with Zijin hinting at a strong profit growth since its IPO last September.  
- In contrast, Western mining companies report robust earnings but struggle with production declines and rising concerns over capital expenditures affecting market sentiment.

Wallstreetcn

EFUND GOLD MI-R

ChinaAMC CSI SH-SZ-HK Gold Industry Equity ETF

SD-GOLD

EFUND GOLD MI-U

SD GOLD

ZHONGJIN GOLD

EFUND GOLD MI ETF

Zijin Mining

MaxWealth CSI SH-SZ-HK Gold Industry Equity ETF

ZIJIN MINING

ChinaAMC Gold ETF

"International peers are cutting production, Chinese gold miners are buying up!" Domestic mining companies are expected to lead global performance this year