Macquarie raises target price for Zijin Mining Group (02899) to HK$40, profit forecast increased due to rising gold prices.

Macquarie released a research report stating that Zijin Mining Group's key copper project Kamoa-Kakula has updated its copper production guidance for 2026 and 2027 to a range of 380,000 to 420,000 metric tons and 500,000 to 540,000 metric tons, respectively, eliminating concerns about production due to earlier operational interruptions. The bank has increased its gold price forecasts for 2025 to 2027 by 2%, 22%, and 35%, and copper price forecasts by 2%, 13%, and 0%. At the same time, it has raised Zijin Mining Group's profit forecasts for the same period by 20%, 61%, and 35%. Macquarie has raised its target price for Zijin Mining Group by 75% to 40 Hong Kong dollars, equivalent to a forecasted P/E ratio of 9.6 times for next year, maintaining an "outperform" rating.