The net profit of Zijin Mining is expected to increase by 156.09% to 172.61%.

On the evening of July 1, Zijin Mining issued a semi-annual performance forecast that the net profit attributed to shareholders of listed companies from January to June 2021 is expected to be 6.2 billion yuan to 6.6 billion yuan, an increase of 156.09% to 172.61% over the same period last year.

Zijin Mining said that during the reporting period, the company fully seized the market opportunity, actively organized production, and increased the output of main mineral products such as gold, copper and zinc compared with the same period last year. In the first half of the year, Zijin Mining two major mines have been put into production. On May 26th, Zijin Mining announced that the Camoa-Kakoula Copper Mine, a world-class copper mine, had been completed and put into production. Chen Jinghe, chairman of Zijin Mining, said that the commissioning of the Kamoa-Kakoula copper mine will have an important impact on the increment of copper in Zijin Mining, and will be of positive significance to the realization of the company's strategic goals in the next five years and 2030. In addition to Kakoula Copper Mine, Zijin Mining's two world-class copper mines, namely, the Paiji Copper Mine in Serbia and the Julong Copper Mine in Tibet, China, are also speeding up construction, which will bring new increments to the supply of copper resources that are scarce in the transformation and upgrading of the energy structure under the "carbon peak" and "carbon neutralization". On June 16, Zijin Mining World-class Peiji Copper and Gold Mine officially entered the stage of trial production. After the project is put into production, it is expected to produce an average of 91000 tons of copper and 2.5 tons of gold.

In addition, the sharp rise in copper, zinc and other metal prices compared with the same period last year is also an important reason for the sharp increase in profits in the first half of the year. According to the SMM database, copper prices have continued to rise since the beginning of this year, with SMM#1 copper spot reaching 76900 yuan / ton.

"Click to view related metal prices

In addition, Zijin Mining also continues to strengthen internal management, tap potential and increase efficiency, and promote the development of Zijin Mining.

In late February, Zijin Mining shares soared to 15 yuan per share, the highest since its listing. Although the stock price subsequently recovered, it still outperformed the market in the first half of the year. As of 10:06 on July 2, Zijin Mining had a total market capitalization of 260.6 billion yuan, ranking first in the precious metal sector.

In addition, Zijin Mining said that the recent correction in share prices is affected by multiple factors such as the macroeconomic and industry situation. At present, the company has good fundamentals and normal operation.

Tianfeng Securities pointed out that globally, the limited resources of traditional periodic products determine the endogenous endowment of mining companies. The limited resources and the scarcity of high-grade resources give mining companies a certain valuation premium space. At the same time, the development of mergers and acquisitions is the only way for the growth of mining companies, the company is countercyclical expansion into the growth harvest stage. From 2021 to 2022, along with Camoa, Julong Copper, Serbian Zijin Copper, Quiana Jintian and other copper and gold mines, copper reached 54 and 800000 tons respectively, and mineral gold reached more than 53 and 67 tons respectively; the company is expected to benefit from the double valuation premium of sustained growth and scarcity of resources in terms of resource identification, operation management and capital expenditure.

At present, countries all over the world are making efforts to turn to green and clean energy, and China's "14th five-year Plan" has also proposed to vigorously develop 'carbon peak' and 'carbon neutralization'. The transformation of green energy is bound to bring an increase in the demand for copper, although the price of copper fluctuates in the short term. but in the long run, the demand for copper is bound to keep growing, and Zijin Mining will continue to improve in the future.