In "Major Banks," China International Capital Corporation: ZIJIN GOLD INTL's acquisition of United Gold is expected to increase proven and probable reserves by 36%

Bank of China International published a report stating that ZIJIN GOLD INTL (02259.HK) has agreed to acquire all issued shares of United Gold Company at a price of CAD 44 per share, with a total consideration of CAD 5.5 billion. United Gold Company holds six mining rights and five exploration rights in Africa. As of the end of 2024, the company has identified and indicated gold resources of 488 tons, with proven and probable gold reserves of 337 tons. Its gold production is expected to reach 11.7 to 12.4 tons in 2025.

The report indicates that with the expansion of the Sadiola mine and the completion of the Kouroumk mine, its gold production is expected to reach 25 tons by 2029. This acquisition will increase ZIJIN GOLD's proven and probable reserves by 36% and gold production in 2029 by 43%. The acquisition is also expected to generate synergies with ZIJIN GOLD's existing mines in Ghana. Currently, the bank maintains a "Hold" rating on ZIJIN GOLD INTL and a "Buy" rating on ZIJIN MINING (02899.HK)