Zijin Mining Reports Record Profit but Adjusts Production Targets Amid Market Challenges
Zijin Mining Group has posted a record net profit of 32 billion yuan (approximately $4.4 billion) for the year 2024, marking a 52% increase from the previous year.
This impressive performance aligns the Chinese company with global commodities leader Glencore Plc, with rising gold prices and increased copper production being key contributors to its success.
However, despite strong financial results, the company has lowered its copper production target by 6%, now aiming for 1.15 million tonnes.
Additionally, Zijin has scaled back its lithium ambitions, reducing its 2025 production target by 60% to 40,000 tonnes. This cautious approach reflects the company’s anticipation of less favorable earnings in the short term.
Analysts from Bloomberg Intelligence, Michelle Leung and Grant Sporre, note that while Zijin has adjusted its projections, the company remains on track to meet its long-term goals by 2028.
They forecast a 30% compound annual earnings growth from 2023 to 2025. Nevertheless, these adjustments led to a slight 1.5% decline in Zijin’s Hong Kong share price.
Over the past decade, Zijin has rapidly expanded, becoming a major player in the global copper market with significant projects in the Democratic Republic of Congo and China.
Like its competitor Rio Tinto Group, Zijin has increasingly focused on lithium as a key part of its strategy to become one of the world’s largest producers.
The lithium market, however, has been highly volatile, with prices plummeting by approximately 90% since 2022. This sharp decline has prompted many companies, including Zijin, to reevaluate their expansion plans.
In response, Zijin recently announced plans to acquire a $1.9 billion stake in Zangge Mining Co., a domestic lithium and potash producer, potentially bolstering its market position in a challenging economic landscape.
