Morgan Stanley: Zijin Gold International (02259) maintains solid first quarter profit, rated as "hold"

Morgan Stanley released a research report stating that Zijin Gold Intl (02259) had a solid performance in the first quarter, with a net profit of $801 million, an increase from $696 million in the fourth quarter of last year, which was below the bank's expectations but above the market consensus. The stock is maintained at a 'hold' rating with a target price of HK $215. The report pointed out that gold production in the first quarter was 13.46 tons (including 601 kilograms contributed by the Porgera project), a decrease from 14.82 tons in the fourth quarter of last year. The bank believes that the quarterly decline may be due to seasonal factors such as weather. Morgan Stanley stated that the first-quarter all-in sustaining cost (AISC) was $1,638 per ounce, higher than $1,501 in the 2025 fiscal year, mainly due to the increase in royalties driven by the rise in gold prices, with costs rising faster than the bank expected.