Zijin Mining Reports Strong Growth in H1 2024 as Metal Prices Surge
Zijin Mining Group has announced its unaudited interim results for the first half of 2024, reporting substantial growth in production and profitability despite a turbulent global economic environment. The company's revenue was buoyed by higher metal prices, particularly for gold and copper, as well as increased production volumes across its major mining projects.
During the reporting period, global economic uncertainty led to fluctuations in metal prices. Gold and copper reached record highs in the second quarter before prices for industrial metals, including copper, began to retreat due to concerns about potential recessions in Europe and the U.S. Despite this volatility, Zijin Mining capitalized on the strong first half, benefiting from high demand for gold, seen as a safe-haven asset during geopolitical instability. Mergers and acquisitions in the mining sector were particularly active, with copper assets in high demand due to their scarcity.
In terms of production, Zijin Mining saw a 5.3% year-on-year increase in mine-produced copper, reaching 519,000 tonnes, and a 9.5% increase in gold production, totaling 35.4 tonnes. The company also produced 222,000 tonnes of zinc and lead and 210.3 tonnes of silver. These figures contributed to a 5.6 percentage point rise in the gross profit margin for its mineral products, bringing the margin to 57.3%.
Cost control measures played a key role in boosting profitability. During the first half of 2024, the company reduced the cost of sales for its copper and gold concentrates by 8.8% and 6.7%, respectively, compared to the second half of 2023. This focus on cost efficiency helped Zijin achieve a pre-tax profit of RMB 21.6 billion (approximately $3.02 billion), up 38.9% from the same period last year. Net profit attributable to shareholders rose 46.4% to RMB 15.1 billion (around $2.11 billion).
Zijin Mining’s exploration activities also yielded promising results. The company made significant discoveries at the Julong Copper Mine and the Tongshan Copper Mine in Heilongjiang, adding over 18 million tonnes of copper resources. The Julong mine is now the largest copper mine in China based on its filed resources, which include 25.88 million tonnes of copper. Additionally, Zijin made progress in exploration at several other sites, including the Čukaru Peki Copper and Gold Mine in Serbia and the Buriticá Gold Mine.
The company’s financial position remained strong, with total assets reaching RMB 368.9 billion (approximately $51.65 billion) by the end of June 2024. Net cash flow from operating activities grew by 27.6% year-on-year, totaling RMB 20.4 billion (around $2.86 billion). Zijin Mining’s debt-to-asset ratio fell to 56.7%, down three percentage points from the beginning of the year, reflecting a more optimized asset structure.
