Damo: Zijin Gold International (02259) reaffirms that this year's gold production of about 59 tons will maintain the “gain” rating

The Zhitong Finance App learned that Morgan Stanley released a research report saying that Zijin Gold International (02259) management reiterated its target gold production target of about 59 tons this year, and through endogenous growth, the goal is to increase production capacity to about 70 tons in 2028; in addition, the company is formulating a dividend policy, and the dividend ratio will be linked to profitability. The bank maintained the company's “gain” rating, with a target price of HK$189.

Damo pointed out that Zijin Gold International is promoting a number of mergers and acquisitions, targeting large-scale gold assets, with reserves of about 100 tons and an annual output expected to reach about 10 tons; priority acquisition regions are Central Asia, South America and Africa, and the gold price used when evaluating new acquisitions is assumed to be between 3,000 and 3,500 US dollars per ounce. On the other hand, the company expects capital expenditure to expand production from 2026 to 2028 to US$3.1 billion to US$3.2 billion, while annual maintenance capital expenditure is estimated at US$300 million to US$500 million.