Zijin Mining: Phase II Project of Julong Copper Mine Completed and Put into Operation, Net Profit Forecast to Increase YoY in 2025

Zijin Mining announced on the evening of January 23: The second-phase project of its Julong Copper Mine has been officially completed and put into operation. Building upon the existing 15,000-ton-per-day mining and processing capacity, the Julong Copper Mine will add a new production scale of 20,000 tons per day, forming a total production capacity of 35,000 tons per day. After the second-phase project reaches full production, the annual ore mining and processing scale of the Julong Copper Mine will increase from 45 million tons to 105 million tons. The annual production of mined copper is expected to rise from 190,000 tons in 2025 to approximately 300,000–350,000 tons (with projected mined copper output reaching 300,000 tons in 2026). The annual production of mined molybdenum will increase from 8,000 tons in 2025 to about 13,000 tons, and the annual production of mined silver will rise from 109 tons in 2025 to approximately 230 tons. The Julong Copper Mine will become the largest copper mine in China and a world-class super-large copper mine with the highest altitude and the lowest processing grade globally.

Zijin Mining announced on January 15 that the company signed the "Project Cooperation and Equity Transfer Agreement" with Jinmu Co., Ltd. Under the framework of the "Cooperation Intent Agreement" signed on August 29, 2025, the two parties formally reached a package cooperation for the integrated development and deep processing of the Shapinggou Molybdenum Mine in Jinzhai County, Anhui Province. On the premise that Jinmu Co., Ltd. agrees to establish, construct, and operate the smelting company in accordance with the terms and arrangements stipulated in the "Cooperation Agreement," Zijin Mining agrees to transfer a 24% equity stake in Jinsha Molybdenum Industry to Jinmu Co., Ltd. for a consideration of 1,730.87 million yuan. After the transfer, Zijin Mining or its subsidiaries, Jinmu Co., Ltd., and Jinzhai County Urban Development Investment Co., Ltd. will hold 60%, 34%, and 6% equity in Jinsha Molybdenum Industry, respectively. The construction and operation of Jinsha Molybdenum Industry will be led by Zijin Mining.

Zijin Mining introduced in its announcement: The Julong Copper Mine is located in a high-altitude, oxygen-deficient region at over 5,000 meters above sea level, characterized by harsh natural geographical conditions, difficult working environments, and extremely challenging construction management. Since acquiring and taking the lead in constructing and operating the Julong Copper Mine in June 2020, the company has relied on its strong independent technology and engineering R&D innovation capabilities across the entire process, as well as the Zijin spirit of "hard work and pioneering innovation." It took only about 18 months to complete and put the first-phase project into operation. After the commencement of the second-phase project, it once again achieved completion and operation in approximately 18 months.Currently, the company is further planning the implementation of the third-phase project for the Julong Copper Mine. If the project is approved by the relevant government departments, the final mining elevation of the third-phase project will be reduced from 4,452 meters in the second phase to 3,880 meters. The exploitable copper reserves within the boundary will exceed 20 million tons, and the annual ore mining and processing volume will reach approximately 200 million tons. Upon completion, the Julong Copper Mine will become the world's largest copper mine in terms of mining and processing scale, with an annual copper production of about 600,000 tons after reaching full capacity.

Zijin Mining's announcement also revealed that, based on the resource reserves of the Julong Copper Mine filed with the natural resources authority in 2024, the mine's cumulative identified copper metal resource content reached 25.88 million mt, approximately 2.5 times the 10.41 million mt verified at the time of the company's acquisition, making it the largest copper mine in China by filed resource volume. The Julong Copper Mine also contains associated resources, including molybdenum metal content of 1.672 million mt with an average grade of 0.019%, and silver metal content of 15,145 mt with an average grade of 1.68 g/mt. The company's wholly-owned subsidiary and its controlled publicly listed firm, Zangge Mining Co., Ltd., collectively hold an 80.88% interest in the Julong Copper Mine, with the post-penetration equity ratio attributable to the company being 58.16%.The completion and commissioning of the Julong Copper Mine Phase II project will significantly enhance the comprehensive strength of the company's copper segment.The Julong Copper Mine, together with the company's core copper mine projects in Serbia and the DRC, has formed a "troika" pattern for copper industry development. Coupled with the successive construction, commissioning, and technological transformation and capacity expansion of a number of key copper mine projects under the company, this will drive continuous growth in the company's mined copper production. This is of great significance for consolidating the company's leading position in the global copper industry and achieving its strategic goal of becoming a world-class mining group.

Zijin Mining announced on the evening of December 30, 2025, in its performance forecast that,based on preliminary calculations by the finance department, it is estimated that the net profit attributable to shareholders of the listed company for the full year of 2025 will be approximately 51-52 billion yuan, an increase of approximately 18.9-19.9 billion yuan compared to 32.051 billion yuan in the same period last year, up approximately 59%-62% YoY.The estimated net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses for the full year of 2025 is approximately 47.5-48.5 billion yuan, an increase of approximately 15.8-16.8 billion yuan compared to 31.693 billion yuan in the same period last year, up approximately 50%-53% YoY.

Regarding the main reasons for the expected performance increase in the reporting period, Zijin Mining's announcement stated:(1) The production of major mineral products during the reporting period increased YoY, specifically: mined gold approximately 90 mt (2024: 73 mt), mined copper (including Kamoa's attributable production) approximately 1.09 million mt (2024: 1.07 million mt), mined silver approximately 437 mt (2024: 436 mt), and lithium carbonate equivalent (including Zangge Mining's production from May to December) approximately 25,000 mt (2024: 261 mt). (2) During the reporting period, the selling prices of mined gold, mined copper, and mined silver rose YoY.

Regarding the company's production plan for major mineral products in 2026, Zijin Mining's announcement stated: The company proposed the following production plan for major mineral products in 2026: mined gold 105 mt, mined copper 1.2 million mt, lithium carbonate equivalent 120,000 mt, and mined silver 520 mt.

In its latest research report, Goldman Sachs significantly raised its gold price forecast, increasing its December 2026 gold price prediction from the previous $4,900/oz to $5,400/oz, an increase of over 10%. Goldman Sachs believes that the private investment sector is accelerating its allocation to gold, which may become a key force driving gold prices to rise beyond expectations. The report stated that as global policy uncertainty increases, private investment departments are placing greater emphasis on gold as a hedging tool. These investors are not expected to sell their holdings in 2026, which effectively raises the baseline level for gold price movements.

Pacific Securities' research report on Zijin Mining pointed out: Mine gold production exceeded targets. In 2025, the company's mine copper/mine gold/mine silver/lithium carbonate production was 1.09 million mt, 90 mt, 437 mt, and 25,000 mt, respectively, up +2%/+23%/+0%/+9,479% YoY, achieving 95%/106%/97%/63% of the full-year targets, respectively. In Q4, mine copper/mine gold/mine silver production was 260,000 mt, 25 mt, and 102 mt, respectively, down -7%/+34%/-3% YoY and -1%/+6%/-9% QoQ. The overachievement in mine gold production was mainly due to increased production from the Akim mine, Shanxi Zijin, Serbia Zijin Copper, and the Porgera mine, among others. The mine gold target exceeded expectations. The company's 2026 production targets for mine copper/mine gold/mine silver/lithium carbonate are 1.2 million mt, 105 mt, 520 mt, and 120,000 mt, respectively, up +10%/+17%/+19%/+380% YoY, maintaining a high growth trend. The mine gold target increase exceeded expectations; based on the commissioning progress, the 2026 mine gold increment is expected to come from projects such as the Akim mine, Raygorodok mine, Buriticá, and Rosebel. Regarding mine copper, the Kamoa copper mine is expected to gradually return to full production capacity in 2026, with the main increment coming from the Julong copper mine. Metal prices continue to rise, and the long-term price trend remains positive. Against a backdrop of weakening US dollar credit, coupled with geopolitical factors and tightening metal supply and demand, metal prices continue to climb. Current SHFE gold prices exceed 1,000 yuan/gram, SHFE silver prices exceed 20 yuan/gram, and SHFE copper prices exceed 100,000 yuan/mt. Both volume and price increases will drive the company's sustained performance improvement. The report considers the company a global leading mining enterprise with outstanding globalization capabilities, strong growth certainty, and excellent cost control. With continuous increases in gold, silver, copper, and lithium production, the company is expected to fully benefit from high industry prosperity, maintaining a "Buy" rating. Risks: Demand falls short of expectations; supply exceeds expectations; US Fed tightening exceeds expectations.