Zijin Mining's Golden Run: Is This $56 Billion Giant Still Worth Buying?

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.

Ask Aime: Is Zijin Mining Group still a buy despite its 40% YTD surge?

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

1. 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.
2. 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.
3. 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.