Understanding the Market | ZHAOJIN MINING surged over 7% during the session as rising interest rate cut expectations provided momentum for gold prices, with institutions optimistic about the company's performance being bolstered by marine gold mines

Zhitong
2025.08.04 02:10
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ZHAOJIN MINING surged over 7% during the session, and as of the time of writing, it rose 7.08% to HKD 20.86, with a trading volume of HKD 175 million. On the news front, the U.S. non-farm payroll data for July was far below expectations, raising expectations for a Federal Reserve interest rate cut. The strong performance of the gold market last week fully reflected the resonance effect of the U.S. economic slowdown, the weakening dollar, and global risk aversion demand. The market generally believes that the August employment data (to be released on September 5) will be a key reference for the Federal Reserve's meeting on September 16-17. If the data continues to show weakness in the labor market, the likelihood of an interest rate cut will further solidify, providing more upward momentum for the gold market. In terms of performance, Zhongyou Securities pointed out that the company and Zijin Mining hold 70% and 30% equity in the Haiyu Gold Mine, respectively, with an expected annual gold production of 15-20 tons after production begins. Due to the high grade of the Haiyu Gold Mine, the average annual unit cost of ore extraction after reaching production is expected to be HKD 340 per ton, and the early mining of high-grade ore bodies (approximately 6 grams per ton) is expected to further reduce overall costs. Considering that the company's Haiyu Gold Mine is expected to gradually release production after 27 years, its low cost and high output are expected to significantly enhance the company's performance in the future

According to Zhitong Finance APP, ZHAOJIN MINING (01818) surged over 7% during the trading session, with a current increase of 7.08%, priced at HKD 20.86, and a trading volume of HKD 175 million.

On the news front, the U.S. non-farm payroll data for July was far below expectations, raising expectations for a Federal Reserve interest rate cut. The strong performance of the gold market last week fully reflected the resonance effect of the U.S. economic slowdown, the weakening dollar, and global risk aversion demand. The market generally believes that the August employment data (to be released on September 5) will be a key reference for the Federal Reserve's meeting on September 16-17. If the data continues to show weakness in the labor market, the possibility of an interest rate cut will be further solidified, providing more upward momentum for the gold market.

In addition, regarding performance, Zhongyou Securities pointed out that the company and Zijin Mining hold 70% and 30% equity in the Haiyu Gold Mine, respectively, with an expected annual gold production of 15-20 tons after production begins. Due to the high grade of the Haiyu Gold Mine, the average total cost of ore extraction after reaching production is expected to be HKD 340 per ton, and the early mining of high-grade ore bodies (approximately 6 grams per ton) is expected to further reduce comprehensive costs. Considering that the company’s Haiyu Gold Mine is expected to gradually release production after 27 years, its low costs and high output are expected to significantly enhance the company's performance in the future

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