Xiamen, China - On April 22, Zijin Mining, a major global metals miner, released its Q1 2024 report, recording a 5% increase in copper and gold production year-on-year, and a 15% growth in net profit attributable to shareholders of the parent company. The company’s performance has been driven by its cost control measures and growth in production.
Zijin has successfully curbed the trend of rising costs, particularly in its overseas operations, through ongoing management improvements. Thanks to favorable metal prices and robust growth drivers, the company gained further recognition in the capital market, with its market cap peaking at more than RMB 500 billion in the first quarter of the year.
Profits
In Q1 2024, the company’s revenue reached RMB 74.78 billion, a 0.22% decrease year-on-year.
Net profit attributable to shareholders of the parent company was RMB 6.26 billion, up 15.05% over Q1 2023.
Net operating cash flow rose to RMB 8.17 billion, an increase of 4.38% year-on-year.
Total assets and net assets attributable to shareholders of the parent company were RMB 356 billion and RMB 117 billion respectively, up 3.76% and 8.53% from the end of 2023.
Production
Mined gold output reached 16.81 tonnes, a year-on-year increase of 5%, but a decrease of 5% from the previous quarter.
Mined copper production amounted to 262,600 tonnes, up 5% year-on-year, and a growth of 4% from the previous quarter.
Mined zinc production totaled 9,850 tonnes, a year-on-year drop of 9%, and a decrease of 0.2% from the previous quarter.
Mined silver yielded 102 tonnes, down 3% year-on-year, but a 0.4% increase from the previous quarter.
Costs under control
Zijin has adopted an integrated cost control strategy covering international project construction, logistics, procurement, human resources and technology, with a focus on its overseas projects. An Overseas Business Committee was also created to drive cost cutting and help improve the management of international projects.
This has significantly reduced operational costs, especially those of the company’s overseas operations, with unit sales costs for gold and copper concentrates dropping by 14% and 13% respectively.
Key steps include:
Technology: Rosebel Gold Mines achieved a recovery of 97% in Q1 thanks to refined management throughout its production process, surpassing the planned output by 15%.
Construction: These include optimizing engineering schemes for projects, budgeting and settlement, and the in-house implementation of some projects.
Supply Chain: The company significantly reduced its inventory levels and the unit prices of capital projects and supplies.
Growing output amid rising prices
Zijin has seen positive factors for its main products building up this year, with copper and gold prices surging. The company forecasts an increase in the output of its key metals for 2024, aiming for a year-on-year growth of 10% for mined copper and 8% for mined gold.
Copper: Production will be boosted by the expansion of core mines such as the Kamoa-Kakula Copper Mine, the Julong Copper Mine, and the Čukaru Peki Copper-Gold Mine.
Gold: Projects in South America have achieved the strongest performance in terms of both production volume and growth rate. Rosebel Gold Mines produced 2 tonnes of gold in Q1 2024, with an annual guidance of 10 tonnes following de-bottlenecking. Meanwhile, the Buriticá Gold Mine’s gold output reached 2.2 tonnes, with a target of 8.6 tonnes for the year.
In the midst of favorable market conditions and at the start of a new development phase for the company, Zijin will put a stronger focus on organic growth. With an emphasis on its overseas operations, it will leverage information technology and cost control to nurture new productive forces that are specific to Zijin and maximize economic and social benefits. As it transforms its massive resource base to economic returns, the company will also maintain stringent risk control and financial standards to ensure healthy and sustainable growth.
Translator: Jian Reviser: Li Yuanxing Editor-in-Chief: Wang Jie