Key Takeaways:
- Net profit rose 68.2% to RMB39.17 billion in the first half
- Gold output climbed 13% to 47 tonnes, driving 41.7% of gross profit
- Kamoa-Kakula copper output target cut on flooding at the Congo mine
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Zijin Mining H1 profit jumps 68% as gold prices lift margins
Zijin Mining Group reported first-half net profit of RMB39.17 billion, up 68.2% from a year earlier, as higher gold prices widened margins at China's largest listed gold and copper producer.
The results were driven by a 13% rise in mined gold output to 47 tonnes, with the gold business contributing 41.2% of operating revenue and 41.7% of gross profit, according to the interim statement filed under PRC Accounting Standards. Revenue rose 15.8% to RMB194.178 billion, while earnings per share reached RMB1.473. The board declared an interim dividend of RMB4.2 per 10 shares.
Gold prices have climbed to around $4,389 an ounce, still 21% below January's record, as the People's Bank of China added 20 tonnes in July and Chinese households shifted savings into the metal. The rally has lifted margins across the sector, with peer Kinross Gold converting 88% of EBITDA into operating cash flow over the past year.
Copper output, however, slipped 5.7% to 534,000 tonnes, and the company cut its 2026 production plan for the Kamoa-Kakula mine in the Democratic Republic of Congo to 290,000-330,000 tonnes from 380,000-420,000 after a flooding incident. Excluding Kamoa, mined copper output rose 4.8%. The revision trims group copper output by 22,000-57,000 tonnes and pressures this year's target.
The company's debt-to-asset ratio fell to 49.55%, the first time below 50% since 2012, giving it room to fund expansion. Shares rose 4.9% intraday on the earnings release, with short selling at 19.8% of turnover.
The profit surge confirms that elevated gold prices are flowing straight to the bottom line for low-cost producers, and Zijin's 2028 targets of 1.5-1.6 million tonnes of copper and 130-140 tonnes of gold keep it on track as the fastest-growing major miner. Investors will watch the Kamoa-Kakula ramp-up and any further US regulatory action against its Serbian copper unit, which analysts at Citi flagged as bullish on output growth and the gold price outlook.
This article is for informational purposes only and does not constitute investment advice.
