Zhongtong Finance APP learned that Goldman Sachs released a research report stating that Zijin Mining Group (02899) continues to be listed in the 'Conviction Buy List,' maintaining a 'buy' rating with an unchanged H-share target price of 21.5 Hong Kong dollars. The bank maintains its forecast for a minority of Zijin's metal miners to benefit from both production volume and commodity price increases, expecting Zijin's recurring business net profit to reach 41.3 billion yuan by 2026, compared to 22.4 billion yuan last year, with a compound annual growth rate of 23%. The bank estimates that Zijin's stock price reflects the price of copper, which is 22% lower than the spot copper price.

The bank stated that Zijin Mining Group's third-quarter performance met the bank's expectations and exceeded market expectations, with a 40% increase in operating cash flow and a 9-fold increase in free cash flow in the first three quarters, reducing the net debt ratio from 115% at the end of last year to 90% in the third quarter. The bank revised down its profit forecast for Zijin in the next two years by 2% to 5%, reflecting lower copper price forecasts and reduced expectations for production at the Kamoa copper mine in the Republic of Congo, partially offset by an upward revision in gold price forecasts. The bank lowered its copper production forecast for Zijin in the next two years by 2%, reflecting production guidance cuts at the Kamoa copper mine due to unstable electrical supply, but still expects an 8% to 10% synchronous growth in copper production during the period. Zijin's recent acquisition of the Akyem gold mine is expected to bring a 7% increase in gold production and a 2% increase in profit next year.