Zijin Mining's Net Profit Surges 54% on Higher Metal Prices

Zijin Mining, a leading mining company, reported a substantial increase in its net profit for the first half of 2025. The company achieved a net profit of 233 billion yuan, marking a 54% year-on-year growth. This impressive performance was driven by a combination of increased production and rising metal prices. The company's revenue for the period reached 1,677.11 billion yuan, up 11.5% from the same period last year. The total profit amounted to 345 billion yuan, a 60% increase year-on-year.

The strong financial results were underpinned by robust performance across key mineral products. The company produced 570,000 tons of copper, a 9% increase, and 41 tons of gold, a 16% increase. The overall gross margin for mineral products stood at 60.23%, an improvement of 3 percentage points from the previous year. This was largely due to the significant rise in metal prices, which boosted the company's profitability.

The company's copper business contributed 27.8% to total sales revenue, with a 38.5% share of the gross margin. The gold business, however, was the standout performer, accounting for 49.1% of sales revenue and 38.6% of the gross margin. The surge in gold prices played a crucial role in driving the company's overall profitability.

Despite the positive outlook, the company faced challenges, particularly with the Kamoya copper mine. An accident at the mine led to a reduction in the annual production target from 52-58 million tons to 37-42 million tons. This incident is expected to impact the company's annual copper production by 4.4-9.3 million tons. However, management assured that this setback would not significantly affect the company's overall performance for the year.

Zijin Mining has been actively expanding its resource base through a combination of exploration and acquisitions. During the reporting period, the company added 204.9 million tons of copper resources and 132.2 million tons of copper reserves. Additionally, 88.8 tons of gold resources and 34.5 tons of gold reserves were added. The company's acquisition of a controlling stake in Zangge Mining for 13.729 billion yuan further strengthened its strategic resource portfolio, adding significant reserves of potassium, copper, and lithium.

The company also made strategic acquisitions in West Africa and Central Asia, including the Akim gold mine in Ghana and the Raygorodok gold mine in Kazakhstan. These acquisitions are part of the company's broader strategy to enhance its global presence and resource base.

In terms of capital management, the company's overseas gold business is progressing towards a separate listing. The eight overseas gold mines have been restructured under Zijin Gold International, which submitted a listing application to the Hong Kong Stock Exchange on June 30. The company also implemented a share buyback program worth 10 billion yuan and launched a 2025 employee stock ownership plan to maintain market stability.

The company's commitment to shareholder returns was evident in its dividend policy. For 2024, the company distributed 74 billion yuan in dividends, and for the first half of 2025, it plans to distribute 27 billion yuan. The board of directors approved a dividend of 0.22 yuan per share for the first half of 2025, totaling 58.5 billion yuan. This reflects the company's strong financial performance and its dedication to rewarding shareholders.