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    Why Zhaojin Mining Industry (SEHK:1818) Is Up 9.4% After Offshore Deep-Sea Gold Breakthrough And What's Next

    Simply Wall St·12/18/2025 15:26:03
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    • Zhaojin Mining recently reported that its subsidiary Ruihai Mining achieved a breakthrough in offshore deep-sea gold exploration and resource validation, uncovering high-quality concealed ore bodies with grades well above China’s average and overcoming long-standing technical bottlenecks.
    • This advance not only enhances Zhaojin Mining’s resource reserve profile but also underscores how technology-led exploration can reshape its role in global gold supply.
    • We’ll now look at how this offshore exploration breakthrough may influence Zhaojin Mining’s investment narrative and longer-term growth profile.

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    What Is Zhaojin Mining Industry's Investment Narrative?

    To own Zhaojin Mining, you need to believe that its strong recent earnings momentum and resource expansion can justify a still-demanding valuation. The Ruihai offshore breakthrough fits that story, potentially improving resource visibility and extending the company’s growth runway, even if it does little for near term cash flow. In the short term, the bigger swing factors are likely to remain gold prices, execution on its digital and overseas push with partners like SigmaLayer and Ant Digital Technologies, and how the market reassesses growth after a very large 1-year share price move. The new discovery slightly tilts the catalyst mix toward “resource upside,” but it also raises questions on capital intensity, technical execution and regulatory exposure in deep sea mining that were less prominent before.

    However, the deep sea push may amplify some underappreciated operational and regulatory risks investors should understand. Zhaojin Mining Industry's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

    Exploring Other Perspectives

    SEHK:1818 1-Year Stock Price Chart
    SEHK:1818 1-Year Stock Price Chart

    The single Simply Wall St Community estimate clusters fair value at HK$71.97, well above current pricing, yet community members are weighing that optimism against execution risks around new offshore projects and already elevated earnings expectations. You can use these differing viewpoints to stress test how much future growth and successful exploration you are implicitly pricing in.

    Explore another fair value estimate on Zhaojin Mining Industry - why the stock might be worth just HK$71.97!

    Build Your Own Zhaojin Mining Industry Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Zhaojin Mining Industry research is our analysis highlighting 3 key rewards that could impact your investment decision.
    • Our free Zhaojin Mining Industry research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zhaojin Mining Industry's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.