[Introduction]Zijin Mining has initiated an internal project for the mining and processing project of Juno Copper Mine in Tibet, with a total investment of approximately 8.393 billion yuan.
China Fund News reporter Lu Wei
Zijin Mining, which made a huge profit of 24.4 billion yuan in the first three quarters of 2024, has made another big move in copper mining.
According to the company’s announcement on the evening of October 18, the board of directors agreed to initiate an internal project for the Tibet Juno copper mine mining and dressing project, with a total investment of approximately 8.393 billion yuan.
Total investment is approximately 8.393 billion yuan
Zijin Mining announced on the evening of October 18 that the board of directors agreed to initiate an internal project for the mining and processing project of Juno Copper Mine in Tibet, with a total investment of approximately 8.393 billion yuan. The project adopts open-pit mining, with a mining and processing scale of 18 million tons per year. The main products are copper concentrate (containing silver) and molybdenum concentrate.
The project is planned to be completed and put into operation at the end of June 2026, with a production service life of 26 years. After reaching production, the average annual output will be approximately 76,000 tons of copper, 19.7 tons of silver, and approximately 1,188 tons of molybdenum. At present, the project has obtained a number of core pre-construction procedures such as mining license, environmental impact assessment, and project approval.
In August 2023, Zijin Mining acquired a 48.591% stake in Zhonghui Industrial for 1.646 billion yuan, thereby acquiring a relative controlling stake in the Tibet Juno Copper Mine, a domestic undeveloped ultra-large copper mine. According to the agreement, Zijin Mining will lead the construction and operation of the project.
According to the detailed investigation report submitted by the Geological Team No. 2 of the Tibet Geological Exploration Bureau in June 2023, the Juno Copper Mine retains 2.2 million tons of copper metal with an average grade of 0.62%; there is also 1.34 million tons of low-grade copper metal with an average grade of 0.29%. .
Zijin Mining also announced that recently, the company’s wholly-owned subsidiary Tibet Zijin Industrial Co., Ltd. acquired a 5% stake in the project company held by Tibet Zangge Venture Capital Group Co., Ltd. for a consideration of 290 million yuan. The industrial and commercial change registration has been completed. The actual equity held by the company in the project company increased from 48.591% to 53.591%, and the project company is still an associate of the company.
Earned 24.4 billion yuan in the first three quarters
Zijin Mining’s third quarterly report released on the evening of October 18 showed that in the first three quarters of 2024, Zijin Mining achieved operating income of 230.396 billion yuan, a year-on-year increase of 2.39%; net profit attributable to shareholders of listed companies was 24.36 billion yuan, a year-on-year increase of 5.068% %.
On a quarterly basis, in the first three quarters of 2024, Zijin Mining’s net profits were 6.261 billion yuan, 8.824 billion yuan, and 9.273 billion yuan respectively, showing an increasing trend quarter by quarter.
Regarding the performance growth in the first three quarters, Zijin Mining said that it was mainly due to the steady improvement of the company’s production, operation and management capabilities, the growth in the output of major mineral products, and the effective control of costs; at the same time, the company’s ability to research and judge the metal market was further improved, and it fully enjoyed the metal Gains from rising prices.
In the first three quarters of 2024, Zijin Mining’s mined gold output increased by 8% year-on-year, mined copper output increased by 5% year-on-year, mined silver output increased by 7% year-on-year, and mined zinc output decreased by 4% year-on-year; the gross profit margin of mining companies was 57.71%, year-on-year. An increase of 7.42 percentage points; the comprehensive gross profit margin was 19.53%, an increase of 4.37 percentage points year-on-year.
Compared with the second quarter of 2024, in the third quarter of 2024, Zijin Mining’s mined gold output increased by 1%, mined copper output increased by 6%, mined silver output increased by 12%, and mined zinc output increased by 8%.
It is worth noting that in the third quarter, Gaoyi Xiaofeng No. 2 Letter Fund and Gaoyixiaofeng Hongyuan Collective Fund Trust Plan, both under Gaoyi Assets, reduced their holdings of approximately 150 million Zijin Mining shares in total.
Since 2020, Zijin Mining’s stock price has continued to fluctuate upward. On October 18, Zijin Mining’s share price closed at 17.63 yuan, with a market value of 457.4 billion yuan.
Editor: Xiaomo Review: Muyu
