The report from "Big Banks" expects copper and gold prices to continue to be supported by geopolitical factors, maintaining a "Buy" rating for Zijin Mining

Huiyan published a report indicating that Zijin Mining (02899.HK) announced its major mineral production plan for the next three years (2026 to 2028) and set a long-term goal to become one of the top three global copper and gold producers by 2035. Additionally, the group's copper production guidance for 2025, 2026, and 2028 is 1.09 million tons, 1.2 million tons, and between 1.5 million to 1.6 million tons, exceeding HSBC's expectations.

The gold production guidance for 2025, 2026, and 2028 is 90 tons, 105 tons, and 130 to 140 tons, respectively. Considering the recent acquisition of Allied Gold, HSBC stated that this guidance is generally in line with its expectations; it also believes that copper and gold prices are supported by increasing political risks, supply constraints, and a weakening dollar.

Huiyan maintains its target price of HKD 58 for Zijin H shares and RMB 51.2 for Zijin (601899.SH) A shares, both with a "Buy" rating, and expects copper prices to remain high this year supported by structural supply tightness in the market