Morgan Stanley: ZIJIN GOLD INTL (02259) reiterates gold production of approximately 59 tonnes for this year, maintains "Overweight" rating.

Morgan Stanley released a research report stating that ZIJIN GOLD INTL (02259) management reiterated its gold production target of approximately 59 tonnes for this year, and through organic growth, aims to increase capacity to approximately 70 tonnes by 2028; in addition, the company is formulating a dividend policy, with the payout ratio to be linked to profitability. The bank maintains its "Overweight" rating on the company, with a target price of HK$189. Morgan Stanley pointed out that ZIJIN GOLD INTL is advancing multiple M&A projects, with targets being sizable gold assets with reserves of approximately 100 tonnes and potential annual production of approximately 10 tonnes; the priority acquisition regions are Central Asia, South America, and Africa, and the gold price assumption used in evaluating new acquisitions is US$3,000 to US$3,500 per ounce. On the other hand, the company expects expansion capital expenditure of US$3.1 billion to US$3.2 billion from 2026 to 2028, with annual sustaining capital expenditure expected to be US$300 million to US$500 million.