<Research>BOCI: ZIJIN GOLD INTL's Purchase of Allied Gold Anticipated to Increase Proven and Probable Reserves by 36%
ZIJIN GOLD INTL Acquisition: ZIJIN GOLD INTL has agreed to acquire Allied Gold Corporation for CAD5.5 billion, which includes a price of CAD44 per share, enhancing its gold resources and reserves significantly.
Production Projections: The acquisition is expected to boost ZIJIN GOLD INTL's gold production to between 11.7 and 12.4 tonnes in 2025, with projections of reaching 25 tonnes by 2029 due to expansions in existing mines.
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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.
