Key Takeaways:
Zijin Mining reported H1 net profit of 39.17 billion yuan, up 68% year-on-year, as gold output rose 13% and copper volumes expanded.
The company attributed the performance to its operating principle of "improving quality, ramping up production, controlling costs, and enhancing efficiency," Zijin said in the interim report released August 22.
Revenue reached 194.18 billion yuan, up 15.78% year-on-year. Non-GAAP net profit rose 75.89% to 38.03 billion yuan. Operating cash flow jumped 92.41% to 55.47 billion yuan. Mine-produced gold output reached 47 tonnes, while mined copper totaled 534,000 tonnes, up 5% excluding the Kamoa copper mine impact. Lithium carbonate equivalent output surged to 44,000 tonnes.
The company proposed an interim dividend of 11.1 billion yuan, or 4.2 yuan per 10 shares, up 90.9% from 2.2 yuan per 10 shares a year earlier. Combined with the 2025 annual dividend of 10.1 billion yuan, calendar-year payouts exceed 20 billion yuan for the first time. Shares opened 3.42% higher at HKD39.88 on August 24.
Gross margin stood at 37.75%, while the debt-to-asset ratio fell to 49.55%. Total assets reached 541.35 billion yuan, with net assets attributable to shareholders at 205.87 billion yuan. Basic earnings per share came in at 1.473 yuan. Total profit rose 84.05% to 63.49 billion yuan, outpacing net profit growth of 73.90% to 49.81 billion yuan, reflecting improved cost control and operational efficiency.
The lithium segment, the company's "third growth engine," has begun contributing at scale. Production capacity for molybdenum, tungsten, and tin was released in line with market conditions, while full utilization of sulfur resources including sulfur concentrate and sulfuric acid delivered additional profit growth. Mined zinc (lead) reached 200,000 tonnes and mined silver totaled 229 tonnes during the period.
Zijin has been advancing its global resource footprint in the Democratic Republic of Congo, Serbia, and Colombia, with key projects entering production release phases. The diversified asset portfolio and cost advantages enabled a substantial leap in profitability as metal prices stayed elevated. The strong results also support a bullish outlook for the broader precious metals mining complex in Hong Kong and mainland Chinese markets, with Citi recently initiating Buy coverage on Zijin Gold International (02259.HK) on output growth and gold price expectations.
The dividend increase reflects management's confidence in sustained cash generation. Investors will watch the company's full-year production guidance and progress on its lithium expansion projects for the next update.
This article is for informational purposes only and does not constitute investment advice.
