Report
Dan Baker
EUR 147.86 For Business Accounts Only

Zijin Mining’s First-Half Results Beat on Better Margins; Increasing FVE to HKD 1.74

Zijin Mining’s first-half 2016 net profit of CNY 538 million, down 60% year over year, beat our expectation on the back of higher gold prices and effective cost-cutting. Stripping out CNY 720 million of losses on changes in fair value and CNY 456 million of investment losses, largely owing to hedging and the gold-leasing business, operating profit grew 35% year over year, despite lower average selling prices for copper and zinc. We raise our fair value estimate to HKD 1.74 (CNY 1.46 per share) f...
Underlying
Zijin Mining Group Co. Ltd. Class A

Zijin Mining Group Company Limited is a China-based company principally engaged in the exploration, mining, smelting and sales of gold and other metal minerals. The Company's main products include gold products, copper products, lead and zinc products, iron products, silver products, among others. Its gold products mainly include the mineral gold, standard gold bullions, gold ingots and gold concentrates, among others. The Company is also involved in the geographic survey businesses through its subsidiaries.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Dan Baker

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