Zijin Mining's Golden Run: Is This $56 Billion Giant Still Worth Buying?
10min read The price of gold has surged to record highs in 2025, fueled by geopolitical tensions and inflation fears. But with its stock up 40% year-to-date, is China’s Zijin Mining Group (SHA:601899) still a buy? Let’s dig into the data and decide whether this $56 billion mining titan can keep climbing—or if it’s time to take profits.
The Numbers Are Blazing Hot
Zijin Mining has been the gold standard in the sector, with its market cap soaring to $56.48 billion as of early 2025—nearly double its valuation from 2020. But the real fireworks are in its stock price: up 47% in 2025 alone, outperforming even the glittering price of gold itself.
Why Investors Are Digging In
- Gold’s Rally Isn’t Slowing: With central banks hoarding gold and global uncertainty spiking, the metal is trading near $3,000/ounce. Zijin’s 29 million ounces of gold reserves are a gold mine in more ways than one.
- China’s Mining Champion: As Beijing pushes for resource independence, Zijin is expanding operations in Africa and Latin America. Its $307 billion revenue (yes, billion) in 2024 shows scale even the U.S.’s Newmont can’t match.
- Diversified Treasure Chest: Unlike rivals focused solely on gold, Zijin also produces copper, silver, and cobalt. This mix shields it from commodity price swings—a 21% CAGR since 2003 proves it works.
The Red Flags You Can’t Ignore
- Valuation Stretch? With a P/E ratio of 12.73, Zijin is cheaper than rivals like Newmont (P/E 14.2), but its rapid rise could mean profit-taking looms.
- Geopolitical Minefields: Mining in politically unstable regions like Congo or Peru could hit earnings. China’s trade wars also pose risks.
- Debt Loads: Zijin’s $606 billion enterprise value includes hefty debt. A gold price slump could crimp flexibility.
Compare & Contrast: Zijin vs. the Competition
While Zijin leads by market cap, U.S.-based Newmont ($47.76 billion) and Canadian Barrick Gold ($29.99 billion) trail. But Zijin’s operational efficiency shines: its all-in sustaining costs (AISC) are $1,200/ounce, $250 cheaper than Newmont’s. That margin advantage is pure profit gold.
The Bottom Line: Buy, Hold, or Bail?
BUY with a caveat. Zijin’s fundamentals—diversified assets, low costs, and China’s backing—make it a pillar of the sector. But don’t let greed overrule: a 40%+ surge means some cooling is inevitable.
Target: Hold if gold stays above $2,800/ounce. If the metal dips, consider trimming.
Final Stats:- Market Cap Growth: 5,847% since 2003 (CAGR 21%).- Revenue: $307.79 billion in 2024 (up 18% YoY).- Debt-to-Equity: A manageable 0.6, thanks to state support.
In Jim’s words: “This stock isn’t just gold—it’s platinum on steroids. But don’t chase it at $3,000/ounce. Wait for a pullback to $2,500, then load up. China’s mining king still has room to grow!”
Stay Foolish, Stay Hungry—But Keep an Eye on the Charts.
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