UBS: Maintains "Buy" rating on Zijin Mining Group (02899), target price HK$57.8; Julong Copper Mine is the main driver of short-term copper production growth.

UBS released a research report maintaining a "Buy" rating on Zijin Mining Group (02899) with a target price of HK$57.8. The bank noted that short-term production delivery from the company's Julong Copper Mine in Lhasa, Tibet, has become the main pillar of business development in the region, while other regional projects support the next phase of growth. After conducting an on-site inspection of the Julong Copper Mine's open pit, processing plant, tailings facilities, electric mining trucks, and green mine rehabilitation area, UBS believes that the Phase II project's capacity ramp-up is progressing well and will continue to be the group's largest copper production growth driver for 2026 to 2027. The bank noted that although the initial ore oxidation rate was relatively high, the recovery rate has reached approximately 86% since the project commenced production, which is believed to support the achievement of this year's and next year's copper production guidance of 300,000 to 310,000 tonnes and 310,000 to 320,000 tonnes. UBS stated that Zijin Mining Group maintains its full-year copper production guidance of 1.2 million tonnes unchanged, but there is a potential shortfall of approximately 50,000 tonnes at the Kamoa-Kakula copper mine in the DRC, which may have an impact.