Zijin Mining : Continues to Deliver Strong Output Growth in 2023

Highlights：

1. Strong Production Growth among Top Mining Companies

n Zijin's mined copper output in 2023 reached 1.01 million tonnes, a rise of 11% year-on-year.

In 2023, Zijin became the first Asian miner to produce more than one million tonnes of mined copper, accounting for about 60% of China's annual copper production. Zijin has become one of the world's top 5 copper producers by output, with a compound annual growth rate of around 30% in output since 2020.

n Mined gold production stood at 68 tonnes, up 20% year-on-year.

Gold is a highly sought-after, safe-haven asset. Gold, Zijin is capitalizing on this market opportunity and accelerating its efforts to ramp up production capacity. In 2023, the company increased its gold production by 20% to 68 tonnes, positioning it as the No.1 listed gold mining company in China and among the top 10 globally. Since 2020, Zijin has achieved a compound annual growth rate of over 15% in output, solidifying its position as a leader in the industry.

n Steady output of other metals

In 2023, Zijin's mined zinc production hit 420,000 tonnes, an increase of 2% year-on-year.

Silver production reached 412 tonnes, up 4% year-on-year.

Lithium carbonate equivalent output was 2,903 tonnes.

2. World-class resource base

As of December 31, 2023, Zijin's attributable measured, indicated and inferred resources include 74.56 million tonnes of copper, 2,998 tonnes of gold, 10.68 million tonnes of zinc and lead, 14,739 tonnes of silver, and 13.46 million tonnes of lithium resources (LCE).

In terms of proven and probable reserves, it has 33.40 million tonnes of copper, 1,148 tonnes of gold, 4.699 million tonnes of zinc and lead, 1,863.89 tonnes of silver, and 4,426,500 tonnes of LCE, accounting for 45%, 38%, 44%, 13% and 33% respectively of the company's attributable resources of the metals.

3. Profits

n In 2023, the company's revenue reached RMB 293.4 billion, a 9% increase year-on-year. n EBITDA amounted to RMB 46.5 billion, up 6.57% over the previous year.n Net profit attributable to shareholders of the parent company was RMB 21.1 billion, up 5% over 2022.n Net operating cash flow rose to RMB 36.9 billion, an increase of 29% year-on-year.n Total assets were worth RMB 343 billion, a 12.08% increase year-on-year, and net assets attributable to shareholders of the parent company hit RMB 108 billion, up 20.87% year-on-year.

4. Market capitalization

Thanks to its strong growth and successful strategies, Zijin has gained greater recognition in the capital market, with its A- and H-share prices rising by 27% and 23% respectively by the end of 2023 over the same period of the previous year. In 2024, its market cap has topped RMB 400 billion ($62 billion), ranking the company 22nd among A-share listed companies and 6th among global miners.

5. Outlook

Zijin is implementing major expansion and de-bottlenecking projects in its three world-class copper production bases in the Democratic Republic of Congo, Serbia, and Tibet, China. This will significantly increase its output of copper. Over the next 3-5 years, the company's existing projects alone are expected to add 500,000 tonnes in production capacity.

In terms of its gold portfolio, the Porgera Gold Mine in Papua New Guinea, one of the world's top 10 gold projects, has resumed production. Other world-class gold mines such as the Rosebel Gold Mine in Suriname will continue to increase their output. These large projects, combined with the construction and commissioning of medium-sized gold mines, will see the company's gold output grow considerably.

In light of the positive growth momentum, Zijin will strive to achieve its strategic goal of becominga green, high-tech, leading global mining company by 2028, two years earlier than planned. To this end, in 2024, the company will focus on creating maximum economic and social benefits by developing qualitatively new productive forces and improving its productivity across the board. In this process, it will leverage the power of technological innovation and cost management.

While several leading global mining companies lowered their production guidance for 2024, Zijin still expects a significant increase in its mineral output. In 2024, the company plans to produce 1.11 million tonnes of mined copper, 73.5 tonnes of gold, 470,000 tonnes of zinc and lead, 25,000 tonnes of lithium carbonate equivalent, 420 tonnes of silver, and 9,000 tonnes of molybdenum.

Translator:Jian Reviser: Li Yuanxing Editor-in-Chief: Wang Jie