Citi Maintains ZIJIN MINING as Leading Industry Choice, Anticipates Allied Gold Acquisition to Enhance Gold Output and Profitability
Acquisition Details: ZIJIN GOLD INTL, a subsidiary of ZIJIN MINING, has agreed to acquire 100% of Allied Gold's equity for CAD5.5 billion, which is expected to enhance its gold production capabilities significantly.
Production Forecast: The company's gold production is projected to reach 11.7-12.4 tons in 2025 and increase to 25 tons by 2029 due to expansions in the Sadiola and Kurmuk projects.
Market Performance: ZIJIN GOLD INTL's stock rose by 10.345%, while ZIJIN MINING's stock increased by 3.888%, reflecting positive market sentiment following the acquisition announcement.
Analyst Ratings: Citi maintains a Buy rating on ZIJIN MINING, citing the attractive acquisition price amid high gold prices, and has set a target price of HKD39 for the stock.
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Net Inflow of HKD800.5M in Southbound Trading for TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) and XIAOMI-W (01810.HK) saw significant Southbound Trading net inflows of HKD800.5 million and HKD643.1 million, respectively, while ZIJIN MINING (02899.HK), BABA-W (09988.HK), and SMIC (00981.HK) experienced notable outflows.
Short Selling Activity: TENCENT and XIAOMI had short selling amounts of $789.05 million and $1.09 billion, with respective ratios of 5.535% and 16.245%, indicating active trading interest in these stocks.
HSBC Research Increases Price Targets for Zijin Group, Anticipates Sustained High Copper and Gold Prices
Target Price Increases: HSBC Global Investment Research raised the target prices for ZIJIN MINING, ZIJIN GOLD INTL, and Zijin Mining, maintaining a Buy rating due to anticipated increases in gold and copper prices.
Copper Market Outlook: The broker expects copper prices to remain high through 2026, supported by a tight market, while geopolitical uncertainties and a weakening USD will bolster gold prices.
ZIJIN GOLD INTL Acquisition: ZIJIN GOLD INTL's acquisition of Allied Gold, which includes three gold mines, is projected to increase its gold production CAGR to approximately 37% from 2025 to 2027, expanding its portfolio to 13 gold mines.
ZIJIN MINING Production Growth: The expansion of ZIJIN MINING's Julong Copper Mine is on track, with expected copper production rising from about 186,000 tons in 2025 to approximately 204,000 tons in 2026.
