ZIJIN MINING's net profit in 2024 increased by 51.8% year-on-year, and mineral gold production grew by 7.7% year-on-year | Financial Report Insights
ZIJIN MINING's net profit in 2024 increased by 51.76% year-on-year, reaching CNY 32.051 billion, with revenue of CNY 303.6 billion, a year-on-year increase of 3.49%. The production of copper was 1.0685 million tons, a year-on-year increase of 6.07%, and gold production was 72,900 kilograms, a year-on-year increase of 7.70%. The company plans to establish a lithium carbonate production capacity of 40,000 tons by 2025 and actively promote new businesses. The board of directors recommends a cash dividend of CNY 2.8 (including tax) for every 10 shares
Despite a weakening growth momentum in the fourth quarter, Zijin Mining's performance in 2024 remains impressive. Benefiting from steady increases in copper and gold production as well as optimized cost control, the company's net profit last year surged by 51.76% year-on-year, reaching 32.051 billion yuan. The copper production continued to grow steadily, maintaining its position as the only mining company in Asia with copper production exceeding one million tons, while the gold business also grew steadily, and new lithium mining projects are actively being advanced.
On the 21st, Zijin Mining announced its 2024 performance report. Key points are as follows:
Revenue Performance: Total revenue for 2024 is 303.6 billion yuan, a year-on-year increase of 3.49%; of which, revenue in the fourth quarter reached 73.243 billion yuan;
Profit Situation: Net profit attributable to shareholders is 32.05 billion yuan, a year-on-year increase of 51.76%, with basic earnings per share of 1.21 yuan, up 51.25% year-on-year; in the fourth quarter, net profit attributable to shareholders was 7.693 billion yuan, with operating cash flow of 12.751 billion yuan;
Strong Cash Flow: Net cash flow from operating activities was 48.86 billion yuan, a year-on-year increase of 32.56%;
Shareholder Returns: The board of directors recommends a cash dividend of 2.8 yuan (tax included) for every 10 shares;
Mineral Scale: In 2024, copper production reached 1.0685 million tons (up 6.07% year-on-year), and gold production was 72,900 kilograms (up 7.70% year-on-year), continuing to maintain its position as the only mining company in Asia with copper production exceeding one million tons;
Resource Reserves: The company has proven and inferred total resources of 110 million tons of copper, 3,972.53 tons of gold, 12.9823 million tons of zinc (lead), and 17.8815 million tons of lithium (LCE);
Major Project Progress: The Serbian copper mine is advancing its expansion to an annual production of 450,000 tons; the Kamoa copper mine in the Democratic Republic of the Congo will reach 600,000 tons after Phase III, becoming the third-largest copper mine in the world; the expansion of Tibet Julong Copper Industry will make it the largest single copper mine in terms of mining and selection scale in China.
New Lithium Business: Plans to establish a lithium carbonate equivalent production capacity of 40,000 tons by 2025, with projects in Argentina's 3Q salt lake, Lagotso salt lake, and Hunan Xiangyuan hard rock lithium mine actively progressing.
Steady Growth in Copper Production Further Consolidates Industry Leadership
In 2024, Zijin Mining's copper production reached 1.0685 million tons, a year-on-year increase of 6.07%, firmly ranking among the top four copper mining companies globally, and is the only mining company in Asia and China with copper production exceeding one million tons.
It is worth mentioning that the company's copper production has maintained an average annual compound growth rate of 24% over the past five years, making it one of the fastest-growing companies among major global copper enterprises.
According to data from the China Nonferrous Metals Industry Association, the company's copper production from its mines accounts for 65% of the total in China, demonstrating its absolute dominance in the domestic copper mining industry.
Global Strategic Layout Continues to Optimize, Major Projects Accelerate Progress
Zijin Mining currently has over 30 large and super-large mineral resource development bases in 16 countries worldwide and 17 provinces (regions) in China. The progress of the company's major key projects is smooth and will continuously contribute to future growth:
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The Chukalu-Pej copper-gold mine and the Bor copper mine in Serbia are advancing the renovation and expansion project with an annual copper production capacity of 450,000 tons, which is expected to make it the largest copper mining company in Europe;
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After the completion of Phase III of the Kamoa copper mine in the Democratic Republic of the Congo, annual copper production will increase to 600,000 tons, making it the third-largest copper mine in the world, while the accompanying 500,000 tons/year copper smelting plant will also become a new profit growth point;
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After reaching production capacity, the Phase II renovation and expansion project of Tibet Julong Copper will achieve an annual copper production of 300,000 to 350,000 tons, becoming the largest domestic mining and selection scale and the largest single copper mine in the world this century.
Steady Growth in Gold Business, Accelerated Layout in Emerging Lithium Business
In terms of gold business, the company's mined gold is expected to reach 72,938 kilograms in 2024, a year-on-year increase of 7.70%, accounting for 24% of China's total output.
Among them, South America has become the region with the fastest growth in the company's gold production. The Rosebel gold mine in Suriname and the Aurora gold mine in Guyana are actively promoting expansion, and the newly acquired Arequipa copper-gold mine in Peru will also enhance gold production capacity. Additionally, the Akyem gold mine in Ghana is accelerating delivery and is expected to contribute approximately 5.8 tons of gold production annually.
It is noteworthy that Zijin Mining is actively laying out lithium resources. According to market conditions, the company plans to form a lithium carbonate equivalent production capacity of 40,000 tons by 2025:
The Phase I project of the 3Q salt lake lithium mine in Argentina is expected to be put into production in the third quarter of 2025; the Phase I project of the Lagotuo salt lake lithium mine is expected to be put into production by the end of the first quarter of 2025; the Hunan Xiangyuan hard rock lithium mine project and supporting factory are planned to be completed and put into production simultaneously in the third quarter of 2025. These projects will establish an important position for Zijin Mining in the field of new energy metals.
Rich Resource Reserves, Laying the Foundation for Long-term Growth
As of the end of the reporting period, Zijin Mining's total proven, controlled, and inferred resource amount reached 110,374,100 tons of copper, 3,972.53 tons of gold, 12,982,300 tons of zinc (lead), 31,836.01 tons of silver, and 1,788,150 tons of lithium (LCE). These rich resource reserves provide a solid foundation for the company's future long-term and sustainable growth.
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