HK Stock Market Move | CHINAGOLDINTL(02099) rose more than 4%. The Jiam Copper Mine has the potential for large-scale expansion in the future, and the potential for asset injection is huge.
07/01/2025
GMT Eight
CHINAGOLDINTL (02099) rose by more than 4%, reaching a 4.43% increase as of the time of writing, at HK$44.8, with a trading volume of HK$90.8978 million.
On the news front, CHINAGOLDINTL recently released the preliminary production results for 2024 and an outline of the long-term development plan for Jiamak mine. According to the preliminary production results, the production at Jiamak mine in 2024 will exceed the annual production target, while the production at Changshan Haojin mine in 2024 will meet the annual production target. The copper production at Jiamak mine is about 102 million pounds (approximately 46,300 tons), and the gold production is about 53,370 ounces (approximately 1.66 tons); the gold production at Changshan Haojin mine is about 107,700 ounces (approximately 3.35 tons). In addition, in 2024, the company successfully resumed stable production at Jiamak mine.
Northeast believes that the Jiamak copper mine has abundant reserves (copper resources of 6.79 million metric tons, copper reserves of 2.12 million metric tons), with a long extraction period (calculated at 85,000 tons/year production, resources/reserves can be extracted for 80/25 years). In addition, the exploration at Bayi Ranch and Zegulongbei has shown huge potential, indicating that Jiamak copper mine may have substantial expansion space in the long term. The bank indicates that the resumption of production at Jiamak copper mine will drive the turnaround in performance and expects asset injection for the group. 1) First turnaround in Q3 24. 2) The group has abundant gold and copper resources overseas, with huge potential for asset injection. The bank expects the company's net profit attributable to shareholders for 2024-2026 to be US$68 million, US$278 million, and US$313 million, respectively, with corresponding PE ratios of 31.9, 7.8, and 6.9 times.