Key Takeaways:
Zijin Gold International reported first-half net profit of $1.451 billion, up 179 percent on a 51 percent jump in realized gold prices.
The result beat the company's prior profit guidance of about $1.4 billion, and management kept full-year mined gold production guidance at 59 tonnes, BofA Securities said in a note that raised its target price to HKD150 from HKD140.
Revenue rose 100 percent to $3.987 billion for the six months ended June 30, with earnings per share of 54 US cents. Mined gold production climbed 44 percent to 27.3 tonnes, helped by full-period contributions from the Akyem and RG mines acquired in 2025. The average realized gold price reached $4,643 an ounce, while all-in sustaining cost rose 7 percent to $1,678 an ounce, driven by higher royalties tied to the stronger gold price and increased energy costs. Excluding royalties, per-ounce costs declined from a year earlier, management said.
Operating cash flow surged 331 percent to $1.8 billion, lifting cash reserves to $3.869 billion and cutting the debt ratio to 36 percent, with return on equity improving to 17.6 percent. The board declared its first interim dividend since listing of HK$1.5 per share, a payout ratio of about 35 percent of attributable first-half profit.
Cost of sales rose 55 percent to $1.66 billion, reflecting higher sales costs, wages and royalty expenses tied to the 2025 acquisitions, along with adverse weather, longer haulage distances and higher fuel costs.
International gold prices stayed in historically elevated territory through the first half, with geopolitical uncertainty and central-bank reserve accumulation providing support. The company cited ore-grade fluctuations, abnormal rainfall and cost inflation as risks, though it has partly offset these through technology upgrades and supply-chain coordination.
The stock rose 4.7 percent to HKD133.5 on Aug. 17 after the results, giving the company a market value of about HK$341.2 billion, or $43.5 billion. Analysts rate the shares a Buy with a consensus target of HK$144.33.
The maiden dividend and maintained guidance point to management's confidence in hitting operational targets for the rest of the year. Investors will watch second-half gold prices, the key variable that will determine whether the earnings momentum holds.
This article is for informational purposes only and does not constitute investment advice.
