Driven by the surge in gold prices, Zijin Mining's net profit in the first half of the year increased by 55% year-on-year, proposing a dividend of 2.2 yuan for every 10 shares | Financial Report Insights

Driven by the dual forces of steady increases in copper and gold production and rising prices, Zijin Mining delivered an impressive performance report for the first half of 2025, with net profit soaring by 55%.

On Tuesday evening, Zijin Mining announced its performance report for the first half of the year. Key points are as follows:

• Operating revenue of 167.7 billion yuan, a year-on-year increase of 11.50%
• Net profit of 28.6 billion yuan, a year-on-year increase of 55%
• Net profit attributable to shareholders of 23.3 billion yuan, a year-on-year increase of 54%
• Net cash flow from operating activities of 28.8 billion yuan, a year-on-year increase of 41%
• Gross profit margin for mineral products at 60.23%, an increase of 3 percentage points year-on-year
• Core business progress: copper production of 570,000 tons (+9%), gold production of 41 tons (+16%), silver production of 224 tons (+6%)
• The Kamoa Copper Mine in the Congo has adjusted its annual production target down to 370,000-420,000 tons due to mining tremors, which is expected to impact the company's annual copper equity production by 44,000-93,000 tons.
• The company plans to distribute a cash dividend of 2.2 yuan per 10 shares (tax included)

Significant Improvement in Profitability Under Rising Volume and Price Effects, Gold Business Becomes an Important Engine

Zijin Mining delivered an impressive performance report for the first half of 2025. The company achieved operating revenue of 167.7 billion yuan, a year-on-year increase of 11.5%; net profit of 28.6 billion yuan, a year-on-year increase of 55%; and net profit attributable to shareholders of 23.3 billion yuan, a year-on-year increase of 54%. This performance is primarily driven by the dual forces of rising metal prices and steady increases in production.

Specifically, the company's copper production reached 570,000 tons, a year-on-year increase of 9%; gold production was 41 tons, a year-on-year increase of 16%. More importantly, benefiting from the significant rise in metal prices, the overall gross profit margin for mineral products reached 60.23%, an increase of 3 percentage points year-on-year.

From a business structure perspective, copper business sales revenue accounted for 27.8%, with gross profit accounting for 38.5%; gold business sales revenue accounted for 49.1%, benefiting from the significant rise in gold prices, with gross profit accounting for 38.6%, becoming an important engine for profit growth.

Significant Downward Adjustment of Kamoa Copper Mine Production Target

However, it is worth noting that a flooding incident occurred at the Kamoa Copper Mine in the Congo, leading to a downward adjustment of the annual production plan from 520,000-580,000 tons to 370,000-420,000 tons, which is expected to impact the company's annual copper equity production by 44,000-93,000 tons.

Although management stated that this would not have a significant impact on the company's annual copper production, this black swan event still needs to be closely monitored for its actual impact on the second half of the year's performance.

Continuous Enrichment of Resource Reserves, Major Acquisition Strengthens Strategic Layout

In terms of resource reserves, Zijin Mining has continued its "exploration + acquisition" dual-driven strategy. During the reporting period, the company added copper resources of 2.049 million tons and reserves of 1.322 million tons; added gold resources of 888 tons and gold reserves of 345 tons.

Most notably, the company acquired a controlling stake in Zangge Mining for 13.729 billion yuan, increasing its shareholding to 26.178% and gaining control. This acquisition not only added strategic potassium mineral resource reserves but also further enriched the company's copper and lithium metal resource reserves. Zangge Mining achieved a net profit of 1.8 billion yuan during the reporting period, of which 471 million yuan was attributable to Zijin Mining, reflecting a good investment return In addition, the company has continuously acquired the Akim gold mine in Ghana and the Raygorodok gold mine in Kazakhstan, achieving an important strategic layout in West Africa and Central Asia.

Spin-off listing progress, proposing a distribution of 2.2 yuan for every 10 shares

In terms of capital operations, the company's overseas gold segment spin-off listing is progressing smoothly. The company has restructured the assets of eight overseas gold mines into Zijin Gold International and officially submitted a listing application to the Hong Kong Stock Exchange on June 30.

At the same time, the company is actively implementing market value management. At the end of the reporting period, the stock prices of A-shares and H-shares increased by approximately 31% and 44% respectively compared to the beginning of the year, with a total market value reaching 596.2 billion yuan, ranking 21st in the entire A-share market. The company also launched a 2025 employee stock ownership plan and implemented a 1 billion yuan share repurchase, effectively maintaining market value stability.

In terms of shareholder returns, the company's annual dividend has exceeded 10 billion yuan for the first time, with a dividend of 7.4 billion yuan for the 2024 fiscal year, in addition to a mid-term dividend of 2.7 billion yuan. The board of directors has agreed to implement a mid-term dividend of 0.22 yuan per share (tax included) for 2025, with a proposed total dividend amount of 5.85 billion yuan.