JPM | Zijin Gold & Mining Misses, Refining‘s 3 Key Swing Factors and Formosa group beat

Research evidence excerpt

JPM | Zijin Gold & Mining Misses, Refining‘s 3 Key Swing Factors and Formosa group beat

Specialist Sales

APAC Specialist Sales J P M O R G A N

10 July 2026

JPM | Zijin Gold & Mining Misses, Refining’s 3 Key Swing Factors

and Formosa group beat

Anmol Mehta

+852 2800 8896

anmol.mehta@jpmorgan.com

Good morning, we started to get first signs of how cost inflation eating into earnings for mining companies. Zijin Mining/Gold

“profit alerted” 1H26 yesterday which was unfortunately a miss to consensus. Production Volumes lower than 50% of guidance/

JPMe across copper, gold and lithium but earnings even weaker - Zijin Gold ‘s 1H26E was only 41% of FY bbg consensus – a

factor we believe is due to higher cost inflation (diesel, royalties etc). along with downward gold prices.

You’re likely to continue seeing earnings misses across the mining space this reporting season due to cost inflation & likely

guide ups on costs – Diesel prices are $135/bbl today which have more than double ytd, sulfuric acid prices have tripled ytd &

ammonium nitrate still up). Our EMEA mining team has a breakdown for the major input costs on the Iron ore & copper miners –

please let me know if you would like the table.

On the flip side, we have Nanya plastics and the rest of the Formosa group reporting post market yesterday with strong beats

across the board. The ones to focus on are Nanya plastics & FPCC. NYP 2Q26 NP of NT$26.8bn beat JPMe NT$20.5bn /

consensus NT$16.6bn due to electornics materials strength. . OPM has already reached over 20% (was at 4% about 10 months

ago). The other one was TW Refiner FPCC which delivered 2Q26 NP ~NT$21bn crushing consensus NT$7.5bn even with 2Q

inventory loss NT$3.2bn. Utilization was 16% points higher than our estimates & export GRMs rose $16/bbl q/q. A phenomenon