Glonghui, April 23 | Bank of America Securities released a report stating that Zijin's first-quarter results were in line with expectations. Net profit after tax was 6.3 billion yuan, up 15% year-on-year and 26% quarter-on-quarter, reaching 22% and 23% of the bank's and market forecasts for the company for the whole year; revenue reached 75 billion yuan, down 0.2% year-on-year and 9% quarter-on-quarter. The overall gross profit was 11.2 billion yuan, up 6% year-on-year and 3% quarterly. The bank believes that the quarterly increase in Zijin's profit is mainly a rise in metal prices since the first quarter of this year; unit costs have been reduced quarterly, including year-end expenses; and production increases due to continued increases in mine production and mergers and acquisitions. Looking ahead, the bank expects spot copper and gold prices to increase 14% from the average price in the first quarter of this year, and believes Zijin's strong profit momentum will continue in the second quarter. According to the bank's forecast model, every 1% increase in copper/gold prices will cause Zijin's net profit after tax to increase by 1.1%/0.7% this year. The bank maintains a “buy” rating for Zijin, with a target price of HK$21.