$LINGBAO GOLD(03330.HK) Net profit exceeding 1.05 billion yuan in the first three quarters of 2025 (a significant year-on-year increase), surpassing the full-year 2024 figure of 699 million yuan, primarily benefiting from soaring gold prices and cost reduction and efficiency improvement measures, with self-produced gold costs dropping to 273 yuan/gram.

Domestic projects such as the Birch Concentrator have commenced production, targeting 6.3 tons of mined gold for the full year. Overseas, the 3-million-ounce gold mine in Ecuador has been established, with overseas production expected to reach 6-7 tons in the next 2-3 years. Combined with the new gold value-added tax policy, the company enjoys tax advantages as an exchange member, highlighting profit flexibility.

Concerns remain as Q3 production fell short of 2 tons, with some projects delayed due to weather, posing challenges to meeting annual capacity targets. Risks of high gold price volatility persist, and overseas projects face long construction cycles and high uncertainty.

Current valuations are advantageous among Hong Kong-listed gold mining stocks, without excessive overvaluation of growth expectations.