Zijin Mining: Net Profit Up 52% YoY in 2024, Resource Reserves and Production of Key Minerals Such as Copper and Gold Hit Record Highs Again

As gold and copper prices continued to soar, Zijin Mining Group Co., Ltd. (hereinafter referred to as "Zijin Mining") released its 2024 performance report on the evening of March 21. The resource reserves, production, and operational indicators of key mineral products such as copper and gold reached new historical highs, with a net profit attributable to the parent company of 32.1 billion yuan, up 52% YoY. Zijin Mining plans to implement a cash dividend of 7.44 billion yuan for 2024, combined with the semi-annual cash dividend of 2.66 billion yuan already completed, bringing the total annual cash dividend to over 10 billion yuan for the first time.

Some believe that in recent years, as global geopolitical conflicts have escalated and the mining market has undergone significant changes, Zijin Mining's stock price has achieved positive annual returns for six consecutive years, with its market value ranking fourth globally in the metal mining sector by the end of 2024. This demonstrates that its long-term focus on the mining industry and its resource strategy of "counter-cyclical investment and pro-cyclical output" have withstood the impact of severe and complex situations, highlighting its strong development resilience and ability to navigate cycles.

Growth: Volume and Price Rise Coupled with Cost Pullback

Global Competitiveness Continues to Improve

As critical metals, the global supply-demand imbalance for copper and gold continues to deepen. In 2024, the average prices of copper and gold rose by 7.9% (LME copper price) and 23% (London gold price) YoY, respectively.

As a global top-tier enterprise in copper and gold, Zijin Mining seized historical opportunities, leveraging its unique "Ore Flow Five-Ring Integration" mining engineering management model to drive significant growth in the production of world-class copper and gold incremental clusters.

Zijin Mining's copper production exceeded 1 million mt and continued to grow, reaching 1.07 million mt in 2024, ranking among the top four globally, up 6% YoY. Over the past five years, it has maintained a compound annual growth rate of 24%, making it one of the companies with the highest copper production growth among major global copper producers. Data from the China Nonferrous Metals Industry Association shows that China's mine copper production reached 1.643 million mt in 2024, with Zijin Mining's mine copper production accounting for 65% of the total.

In 2024, Zijin Mining's gold production reached 73 mt, ranking first among major listed mining companies in China and among the top six globally, up 8% YoY, with a growth rate second only to Newmont (following its acquisition of Newcrest). Over the past five years, its gold production has achieved a compound annual growth rate of 12%.

Against the backdrop of widespread cost pressures in the global mining industry, Zijin Mining accelerated the construction of a global operational management system, focusing on overseas markets. Through technological innovation, enhanced project pre-settlement, and self-operated mining, mine construction, and installation, it effectively curbed the rising cost trend. The company's main mineral product costs are in the leading range of the global "cost curve," with its C1 cost for copper significantly reduced and maintained at a low industry level, and its AISC for gold also kept at a low industry level.

Benefiting from the simultaneous rise in volume and price of its main products and effective cost control, Zijin Mining's operational indicators reached new historical highs, with revenue of 303.6 billion yuan, ranking fourth globally among mining companies, and a net profit attributable to the parent company of 32.1 billion yuan, ranking fifth globally, up 52% YoY, demonstrating growth far exceeding the industry average.

Meanwhile, Zijin Mining is driving its transformation towards green, low-carbon, and sustainable development through international ESG rules.

In 2024, Zijin Mining's total carbon emissions were 6.99 million mt, down 17.96% YoY. The carbon emission intensity per 10,000 yuan of industrial added value decreased by 34.9% compared to the 2020 baseline, achieving the 2025 target ahead of schedule. The total installed capacity of clean energy reached 767 MW, with equity clean power generation of 564.54 GWh, up 48.21% YoY.

Despite continuous capacity growth, total carbon emissions have continued to decline, vividly illustrating the company's green development and accumulating strong momentum for its commitment to achieving carbon peak by 2029 and carbon neutrality by 2050.

Focusing on core directions such as clean energy, energy conservation, emission reduction, and ecological protection, Zijin Mining has fully integrated climate change into its management system, creating a global sustainable development "Zijin Model."

Momentum: Significant Growth in Resource Reserves

Giant Project Production Continues to Climb

"The company aims to achieve its first-class goal two years ahead of schedule by 2028, with its main metal mineral product production ranking among the top three globally." Supporting Zijin Mining's confidence are its world-class resources and the imminent surge in capacity.

2024 was undoubtedly a highlight year for Zijin Mining's resource reserve growth. The Tibet Julong Copper Mine and Heilongjiang Tongshan Copper Mine together added 18.377 million mt of copper metal resources, contributing the main increment to the national new round of mineral exploration breakthrough actions.

Overseas, in addition to the continuous acquisition of Peru's La Arena Copper-Gold Mine and Ghana's Akyem Gold Mine, the company applied its self-developed "Sinian 3D IP System," playing a key role in the exploration and discovery of the high-grade Maga copper-gold deposit in the deep Timok metallogenic belt in Serbia, representing an important development direction in global metal mineral exploration technology.

In 2024, the growth rate of the company's main product resource reserves exceeded double digits YoY. Currently, the company's total proven, controlled, and inferred resources include: over 110 million mt of copper, 4,000 mt of gold, 18 million mt of lithium carbonate equivalent, 32,000 mt of silver, 5 million mt of molybdenum, and 13 million mt of zinc (lead), building a solid "moat" of world-class assets.

Meanwhile, a batch of world-class copper mine giant capacities are accelerating their climb, gathering strong momentum for the company to become a world-class leader: Serbia's Čukaru Peki Copper-Gold Mine and Bor Copper Mine are accelerating the construction of a total annual copper production of 450,000 mt expansion project, expected to become Europe's largest copper mining enterprise; the DRC's Kamoa Copper Mine Phase III beneficiation plant, once completed, will achieve an annual copper production of 600,000 mt, becoming the world's third-largest copper mine; the Tibet Julong Copper Mine Phase II expansion project is planned to be completed and put into operation by the end of 2025, and if Phase III is approved and put into operation, it is expected to achieve an annual copper production of 600,000 mt, becoming the world's largest, lowest-grade, and highest-altitude copper mine.

The company has six controlled mines planning to produce over 5 mt of gold in 2025. The resumption of production at the Papua New Guinea Porgera Gold Mine, in which it holds a stake, has stabilized capacity. The company's stake in China's largest single gold mine, the Haizhou Gold Mine, is sprinting towards the goal of production in H1 2026. Combined with the new capacity from the recently acquired Peru Arena Copper-Gold Mine and other projects, the company's ranking among global gold companies is expected to steadily rise.

Despite the low lithium price period, the company remains steadfast in its "lithium" vision, optimistic about the continued high growth in global lithium carbonate demand. The "Two Lakes, Two Mines" lithium project and the new energy and new materials industry are progressing orderly, ready to launch. Depending on market conditions, the company plans to form a lithium carbonate equivalent capacity of 40,000 mt by 2025, creating an important new growth pole and accelerating its entry into the ranks of the world's most important lithium producers.

After completing the acquisition of Zangge Mining's controlling stake, the company will achieve absolute control over the Julong Copper Mine, significantly enhancing its copper and lithium resource reserves and adding strategic potassium resources, which is of great significance for forming a new growth pole.