First Read: Zijin Mining Group - H "2026 AIC: updates on 2026 cost..."

Research evidence excerpt

First Read: Zijin Mining Group - H "2026 AIC: updates on 2026 cost..."

Global Research

28 May 2026ab

First Read

EquitiesZijin Mining Group - H

2026 AIC: updates on 2026 cost guidance, China

lithium and future growth path Mining

12-month rating Buy

12m price target HK$57.00

2026 operating guidance: gold cost stable, copper cost up mid-single digit

Management guided that gold costs should remain broadly stable versus last year, while

copper costs may see mid-single-digit growth. With Middle East conflicts continuing, Price (28 May 2026) HK$32.88

investors have concerns over diesel and sulphuric acid costs. Per the company, energy RIC: 2899.HK BBG: 2899 HK

costs account for c.10%+ of overall costs, which could create some cost pressure. For

Trading data and key metrics

sulphuric acid, Zijin produced around 3.7mt in 2025, and management expects a similar

level in 2026. The main external demand for sulphuric acid is Zijin's Kolwezi in the DRC. 52-wk range HK$46.14-17.50

Kolwezi produces around 100-110kt copper per year, of which around 70kt comes from Market cap. HK$874b/US$112b

hydrometallurgical production that requires sulphuric acid. This hydrometallurgical Shares o/s 26,578m (ORD)

portion accounts for c. 6% of the company’s annual production. For this part, Kamoa’s Free float 100%

sulphuric acid plant has already started production and can supply Kolwezi. The Avg. daily volume ('000) 66,586

company also has sulphur supply arrangements, with supply secured until October and Avg. daily value (m) HK$2,440.1

at favourable prices, which should help offset part of the cost pressure from diesel and Common s/h equity (12/26E) Rmb254b

sulphuric acid prices. P/BV (12/26E) 3.0x

Net debt to EBITDA (12/26E) 0.3x

Lithium update: 2028 target to come from existing projects