Jingu Financial News | First Shanghai issued a research report, in the first three quarters of 2024, Chinagoldintl (02099) achieved revenue of 0.463 billion USD, a year-on-year growth of 19%; with a net loss of 3 million USD, a year-on-year reduction of 2.5 million USD. The company's sales cost increased by 30% year-on-year, mainly due to a one-time expenditure of 54.4 million USD in the third quarter for mining rights recognized over the past 7 years. In the third quarter, benefiting from the simultaneous increase in the volume and price of gold and copper, the company achieved revenue of 0.255 billion USD, a year-on-year growth of 309%; a net profit of 27.9 million USD, reversing a loss of 58.7 million USD.

The bank pointed out that the company has released production guidance for 2024, expecting a gold production range of 3.3 to 3.5 tons at Changshanhaogold mine in 2024; the copper production range at Jamamining area is from 0.0432 million tons to 0.0445 million tons, with a gold production range of 1.32 tons to 1.41 tons. The company is actively progressing with the construction of Phase III tailings dam, expected to be completed and put into operation in the first half of 2027. Once the Phase III tailings facility is completed, the total daily ore processing capacity is expected to increase to 44,000 tons/day.

The bank stated that based on the resumption of production in the Jamamining area driving the gradual recovery of production, and the high running of copper and gold prices, the company's future performance will enter a high-speed growth track. The overall valuation of the company is relatively low in the copper and gold sector, with significant room for recovery. The bank respectively adjusted the revenue forecast for 2024-2026 to 0.76 billion / 1.08 billion / 1.13 billion USD; adjusted the net income forecast to 0.09 billion / 0.36 billion / 0.39 billion USD, giving a target price of 63.42 Hong Kong dollars, corresponding to a 9 times PE for 2025, maintaining a buy rating.