Jingu financial news | CICC issued a research report stating that Zhaojin Mining (01818) announced its performance for the first 9 months of 2024, with Q3 quarterly revenue increasing by +17.8% year-on-year to 3.25 billion yuan, and net income attributable to the mother of 0.35 billion yuan, up +169.7% year-on-year and +10.5% quarter-on-quarter.

The bank continued to point out that excluding the impact of impairments and fair value fluctuations, the adjusted net income attributable to the mother in Q3 was 0.57 billion yuan, a 36% increase from Q2, and the profit met expectations. The bank estimates that the Titao Abuja gold mine consolidation accounted for more than half of the performance increase, with additional performance coming from gold price elasticity and cost savings, partially offset by the decline in domestic self-produced gold output and increasing unit costs.

The bank stated that as interest rate cuts are implemented globally, central bank allocations are continuous, and they remain bullish on gold prices. 1) The offshore gold mine is Zhaojin's "killer" project, with consecutive overseas acquisitions opening up growth opportunities. The offshore gold mine has large reserves, high grade, low costs, smooth construction, expected to start production in mid-2025, reach production by the end of 2027, with an annual production capacity of 16 tons. The bank estimates that the self-produced gold output CAGR from 2023 to 2028 will be 22%, and production in 2028 is expected to almost double compared to 2023; 2) Zijin and Zhaojin have initiated equity joint ventures and project partnerships to empower Zhaojin in various aspects from technology to management. The bank expects the company's net income attributable to the mother in 2024/2025/2026 to be 1.36/2.415/2.775 billion yuan, with year-on-year growth rates of +98.2%/+77.6%/+14.9%, maintaining a "buy" rating.