Overview
Zhaojin Mining (1818.HK) is a comprehensive gold producer and gold smelting enterprise
that integrates exploration, mining, beneficiation and smelting operations and focuses on
developing the gold industry. The company’s main products are “9999 gold” and “9995 gold”
standard gold ingots. As of December 31, 2023, the company has a total of approximately
38,10 million ounces of gold mineral resources and approximately 15.18 million ounces of
mineable gold reserves. In the first half of 2024, a total of 14.31 tons of new gold was
discovered through exploration.
Company performance review
As of September 30, 2024 (January-September), the company’s revenue was 8.09 billion
yuan (RMB, the same below) with a year-on-year increase of 26.6%. Operating costs were
4.46 billion yuan with a year-on-year increase of 14.2%. Operating profit was 1.66 billion
yuan with a significant year-on-year increase of 109.80%. Net profit was 1.23 billion yuan
with a significant increase of 128.4%. EPS was 0.26 with a year-on-year increase of 136.4%.
The company’s performance in the first three quarters achieved significant year-on-year
growth, mainly due to the upward trend in gold price caused by safe-haven demand.
Industry Analysis
According to statistics from the China Gold Association, on the supply side: in 2024,
domestic raw gold production achieved 377.242 tons, an increase of 2.087 tons compared
with 2023 with a year-on-year increase of 0.56%, among them, mineral gold production
achieved 298.408 tons and non-ferrous by-product gold achieved 78.834 tons. In addition,
China’s imported raw gold achieved 156.864 tons in 2024 with a year-on-year increase of
8.83%. If the above imported gold is included, China’s production of gold achieved 534.106
tons with a year-on-year increase of 2.85%. In 2024, the overseas mines of China large gold
companies achieved the gold production of 71,937 tons with a year-on-year increase of
19.14%. In terms of consumption: In 2024, China’s gold consumption was 985.31 tons with a
year-on-year decrease of 9.58%, among them, gold jewelry consumption was 532.02 tons,
with a year-on-year decrease of 24.69%; gold bars and gold coins consumption was 373.13
tons with a year-on-year increase of 24.54%; gold for industry and other purposes
consumption was 80.16 ton with a year-on-year decrease of 4.12%. As of the end of
December 2024, China’s gold reserves reached 2,279.57 tons, ranking sixth in the world, and
the gold reserves hit a new historical high. Overall, the supply of gold increased slightly, but
the consumption of gold, especially the consumption of gold jewelry declined, mainly
because the gold price is prohibitive. Unemployment Insurance Weekly Claims were higher
than expected. At the same time, the tariffs and immigration policies implemented by
Trump after taking office were weaker than expected. The market expected the Federal
Reserve to make a dovish decision. In addition, geopolitical issues remain unresolved,
investors’ risk aversion demand has increased, and the value of gold has been highlighted.
Therefore, we believe that gold price will be strong in the short term.
Important events of the company
In June 2024, Zhaojin Mining’s full offer to acquire the Australian TIETTO MINERALS LIMITED
project was finalized. TIETTO MINERALS ‘s flagship asset is the Abuja gold mine, which has a
mining area of 1,114 square kilometers, 1.36 million ounces of gold reserves and 3.83 million
ounces of resources. Currently, less than 10% of the area has been explored, leaving a lot of
room for exploration. The acquisition will help increase Zhaojin Mining’s gold resources and
self-produced gold production.
Important Information
This report is prepared and/or distributed by Phillip Securities Research Pte Ltd ("Phillip Securities Research"), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgment. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSE
Where the report contains research analyses or reports from a foreign research house, please note:
本科主修市場行銷和英語，並於香港浸會大學獲得經濟學碩士學位。現為輝立証券持牌分析師，主要負責能源和公用事業等板塊的研究。曾在大型銀行、券商和資產管理公司工作，對於期貨和大宗商品衍生品領域擁有銷售、研究分析和市場推廣等工作經驗。 Margaret, a holder of a Bachelor`s degree in Marketing and English and a Master`s degree in Applied Economics from Hong Kong Baptist University, is currently employed as a licensed analyst at Phillip Securities. She specializes in conducting research focusing on the energy and utilities sectors. Prior to her current position, Margaret gained valuable work experience in a large bank, securities firm, and asset management companies. Her expertise lies in sales, research analysis, and marketing within the fields of futures and commodities derivatives.
