"Large Banks" Huayan raises Zijin Mining's target price, expects high copper and gold prices

HSBC's research report indicates that based on the increased forecasts for gold and copper prices, the target price for Zijin Mining H shares (02899.HK) has been raised from HKD 43 to HKD 58, the target price for Zijin Mining A shares (601899.SH) has been raised from RMB 39.2 to RMB 51.2, and the target price for Zijin Gold International (02259.HK) has been raised from HKD 178 to HKD 269, all maintaining a "Buy" rating.

The bank expects that underpinned by structural supply tightness, copper prices will remain high in 2026. Meanwhile, the weakening of the US dollar and rising geopolitical uncertainties will continue to provide solid support for gold prices.

Additionally, Zijin Gold International's acquisition of Allied Gold, which includes three gold mines, is expected to result in an average annual compound growth rate of approximately 37% in gold production from 2025 to 2027. The acquisition also expands the company's gold asset portfolio to 13 gold mines across 12 markets, creating regional synergies. As for the expansion progress of the Longteng Copper Mine under Zijin Mining, it is in line with the bank's expectations, with copper production expected to increase from approximately 186,000 tons in 2025 to approximately 204,000 tons in 2026