Zijin Gold International - H: Allied Gold dust settled; organic ramp up to support growth until further acquisitions

研报英文原文证据摘录

Zijin Gold International - H: Allied Gold dust settled; organic ramp up to support growth until further acquisitions

J P M O R G A N Asia Pacific Equity Research

30 July 2026

Zijin Gold International - H Overweight

2259.HK, 2259 HK

Allied Gold dust settled; organic ramp up to support Price (29 Jul 26):HK$117.70

growth until further acquisitions ▼Price Target (Dec-27):HK$146.00 Prior (Dec-27):HK$170.00

Allied Gold and Zijin Gold announced the termination of Zijin Gold’s acquisition

of Allied Gold on 29 Jul (link), with Zijin Gold instead agreeing to subscribe for Asia Basic Materials

~US$295mn of Allied shares, representing an expected ~9.2% stake upon Avery Chan AC

completion. We believe the risk of non-completion has already been largely (852) 2800-8659

reflected in the share price (underperforming gold peers by ~20% since May). Zijin avery.chan@jpmorgan.com

Gold’s valuation is inexpensive in our view even after removing Allied Gold’s Sabrina Liu

contribution and marking to market gold price at ~13x FY27E P/E. We therefore (852) 2800-8535

sabrina.liu@jpmorgan.com

see the termination of the deal as an overhang removal. Excluding Allied, we still

Frankie Fong

expect Zijin Gold’s organic mine growth to support production growth from 59.2t

(852) 2800-8574

in 2026, including Porgera, to 70-75t in 2028. We see increasing chance for further frankie.fong@jpmorgan.com

M&A with gold prices pulling back, and Zijin Gold is still intact to achieve its J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

longer-term 100t production target in 2030. Maintain OW. Morgan Broking (Hong Kong) Limited

• Termination of acquisition. Zijin Gold and Allied Gold announced that the

agreement for Zijin Gold to acquire Allied Gold has been terminated, as both Key Changes (FYE Dec)