Minmetals Resources: Remarkable Growth in Precious Metals and Zinc Smelting

Significant Expansion in Gold and Silver Reserves

Following the integration of ShuiKouShan Mining, Minmetals Resources has seen a remarkable transformation into a comprehensive mining, metallurgy, and processing enterprise. This move has notably doubled its reserves in gold and silver. The Kangjiawan Mine's gold and silver reserves stand at 39.8 tons and 1,321.40 tons, respectively, with average grades leading the industry.

Dominance in Zinc Smelting Market

Minmetals Resources has solidified its position as a leader in China's zinc smelting market, boasting the country's highest total production capacity for zinc products. This leadership is further enhanced by a significant cost advantage. Additionally, the company is making strategic adjustments in its product structure within the zinc sector, anticipating an increase in its market share of zinc aluminum magnesium alloy from 5% to 25%.

Stable Operations and Promising Future Prospects

Backed by the Minmetals Group, a centralized mining enterprise, Minmetals Resources has maintained stable operations. With the support of its parent company, the future development potential of Minmetals Resources is substantial and expected to be further realized in the coming years.

Boost in Earnings and "Buy" Rating

The company's venture into precious metal resources has significantly elevated its earnings. Forecasts predict a net profit of RMB 695 million, 875 million, and 1,099 million for the years 2023 to 2025. With the current share price at RMB 7.82 and a corresponding P/E ratio of 12/10/8x, analysts believe that the market has undervalued the company's overall business, indicating a strong recovery potential and earning it a "buy" rating.