Zijin Mining to Raise Over $3 Billion in Hong Kong IPO Amid Gold Price Surge

Zijin Mining Group, China's largest gold producer, plans to spin off its international gold-mining operations in Hong Kong through a public listing that could raise over $3 billion. The move aims to increase investor appetite with gold prices hitting record highs above $3,500 an ounce. The company targets to expand production above 100 tons by 2028 and has pursued aggressive acquisitions, most recently securing a $1.2 billion gold mine in Kazakhstan.

Zijin Mining Group, China's largest gold producer, is set to spin off its international gold-mining operations in Hong Kong through a public listing that could raise over $3 billion. The move comes as gold prices hit record highs above $3,500 an ounce, fueling investor demand for the precious metal.

The IPO, which would create a standalone entity called Zijin Gold International, aims to provide the company with a significant capital infusion. This funding will be used to expand production and invest in its overseas assets. According to the company's latest earnings report, its output last year was 73 tons of gold, with around 60% coming from international operations in Central Asia, Africa, Oceania, and South America [1].

Zijin's aggressive acquisition strategy has bolstered its global presence. The company recently secured a $1.2 billion gold mine in Kazakhstan, following the acquisition of Ghana's Akyem project from Newmont in 2023. These acquisitions have contributed to the company's growth, with the goal of expanding production above 100 tons by 2028 [1].

The timing of the IPO aligns with favorable market dynamics for the gold sector. Gold has been one of the year's best-performing assets, driven by central-bank purchases, geopolitical risks, and investor demand for diversification. Hong Kong is also experiencing a resurgence in listings, with IPO proceeds expected to more than double to above $26 billion this year [1].

Zijin's flagship gold assets include Colombia's Buriticá mine, one of the world's largest high-grade underground deposits, and the Norton Gold Fields in Western Australia. The company's 95% stake in Suriname's Rosebel mine also contributed significantly to its annual output [1].

The company's first-half GAAP EPS for 2025 was RMB0.86, representing a 59.80% increase compared to the same period last year. This strong financial performance supports the company's ambitious expansion plans [2].

References:
[1] https://www.benzinga.com/markets/commodities/25/09/47502880/zijin-mining-plans-3-billion-hong-kong-listing-as-gold-hits-record-highs
[2] https://seekingalpha.com/news/4490429-zijin-mining-group-gaap-eps-of-rmb086