To The Moon

On August 21, Zijin Mining (02899.HK) released its 2026 interim results, reporting first-half revenue of RMB 194.178 billion, up 15.78% year-on-year. Net profit attributable to shareholders surged 68.17% to RMB 39.17 billion, while net cash flow from operating activities climbed 92.41% to RMB 55.472 billion.

During the period, the gold business contributed 41.2% of total revenue and 41.7% of group gross profit. The copper segment accounted for 33.8% of gross profit, while the lithium division — dubbed the company's "third growth engine" — contributed 2.2% of revenue and 3.4% of gross profit.

Gold, Copper, and Lithium All See Volume and Price Gains

According to the interim report, Zijin Mining's overall gross margin reached 37.75%, up 14 percentage points year-on-year. The gross margin for mined products stood at 69.34%, a rise of 9.11 percentage points, driven by significantly higher metal selling prices and effective management of cash costs per tonne. As of the reporting period end, total assets stood at RMB 541.4 billion, with net assets attributable to shareholders at RMB 205.9 billion. The debt-to-asset ratio fell to 49.55%, dropping below 50% for the first time since 2012, reflecting a more optimized capital structure.

The sharp improvement in profitability was underpinned by robust metal prices. In the first half, amid rising global sovereign debt and diversification of central bank reserve assets, gold's value underwent a revaluation, with average international gold prices hitting USD 4,693 per ounce, up 53.0% year-on-year. Zijin Mining produced 46.70 tonnes of mined gold, an increase of 13.4%.

Copper, a core "computing metal," benefited from rapid AI development and the electrification wave, with prices reaching record highs and maintaining elevated volatility. The average LME copper price rose 38.5% year-on-year to USD 13,083 per tonne. Zijin Mining produced 534,400 tonnes of mined copper, up 5% excluding the impact of Kamoa. However, due to the flooding incident at the Kamoa-Kakula copper mine and the subsequent ramp-up, the mine's 2026 production guidance was revised down from 380,000–420,000 tonnes to 290,000–330,000 tonnes, putting pressure on the company's full-year mined copper output target.

Benefiting from improved lithium fundamentals driven by energy storage demand, lithium prices recovered, with average domestic lithium carbonate prices soaring 132.1% year-on-year to RMB 163,427 per tonne. The lithium segment, as Zijin Mining's "third growth engine," has achieved scale contributions, with lithium carbonate equivalent output reaching 43,600 tonnes, a year-on-year surge of 496%. Additionally, comprehensive utilization of by-products such as molybdenum, tungsten, sulfur concentrate, and sulfuric acid delivered notable benefits, emerging as new profit highlights.

Cumulative Dividends Exceed RMB 20 Billion This Year

In resource acquisition, Zijin Mining has pursued a dual-track strategy of exploration and mergers. The company is actively advancing the closing of its acquisition of control over Chifeng Gold, whose Sepon gold-copper mine in Laos (SND project) added 153 tonnes of gold equivalent metal. It also completed the acquisition of a 72% stake in Gansu Northwest Gold for approximately RMB 2.4 billion, which holds 16 exploration permits with cumulative identified gold resources of 107.4 tonnes. Through court auction and agreement transfer, the company acquired Lianrui Mining, indirectly obtaining a 55% interest in the Kekekarde tungsten-tin mine for about RMB 900 million, lifting consolidated WO3 resources to 320,000 tonnes and positioning the company among China's top-tier tungsten producers.

On the exploration front, Zijin Mining has intensified its "prospecting near existing mines" strategy, with deep-level supplementary exploration at projects including Julong Copper, Zhunuo Copper, Buriticá Gold, Rosebel Gold, and Ruiguoduo Gold yielding significant results.

In project expansion, the Julong Copper Mine expansion was completed and commissioned in January 2026, adding 300,000–350,000 tonnes of annual mined copper capacity. The Zhunuo Copper Mine is scheduled for commissioning by end-2026, adding 76,000 tonnes of annual capacity. The Manono Lithium Mine achieved heavy media separation commissioning in May 2026, about one month ahead of schedule, with the first phase of the smelting series targeted for commissioning by end-2026. Construction of the Shapinggou molybdenum ore processing project began in June 2026, which will position the company among the world's largest molybdenum producers. The 3Q Salt Lake lithium project, Laguocuo Salt Lake lithium project, and Xiangyuan hard rock lithium mine are steadily ramping up capacity.

Notably, in shareholder returns, Zijin Mining completed its FY2025 dividend distribution of RMB 10.1 billion in late June 2026, followed by an interim dividend proposal of RMB 11.1 billion on July 10 — RMB 4.2 per 10 shares (pre-tax) — marking the first time cumulative dividends in a single calendar year have exceeded RMB 20 billion. Concurrently, the company unveiled its 2026–2028 shareholder dividend return plan, raising the cumulative cash dividend ratio to 35% of cumulative distributable profits, up from 30%.