SHA:601899

Zijin Mining's First-Half Profit Jumps 68% as Higher Metal Prices Lift Margins

Zijin Mining's (HKG:2899, SHA:601899) attributable profit jumped 68% in the first half as higher gold, copper, and lithium prices boosted earnings and margins.Profit attributable to owners of the parent rose to 39.2 billion yuan from 23.3 billion yuan a year earlier, according to the company's interim results.Operating income increased 16% to 194.2 billion yuan from 167.7 billion yuan, while profit before tax surged 84% to 63.5 billion yuan.Earnings per share increased to 1.473 yuan from 0.860 yuan.Higher metal prices provided a major boost, with the average London gold price rising 53% to $4,693 an ounce and copper prices climbing 38.5% to $13,083 a tonne.Zijin's mined gold production increased 13% to 46,702 kilograms, while mined copper output excluding Kamoa rose 4.8% to 480,032 tonnes.Lithium production also surged, with mined lithium carbonate equivalent output jumping 496% to 43,596 tonnes.The average Chinese lithium carbonate price rose 132% to 163,427 yuan a tonne, supporting stronger profitability in the company's lithium business.The stronger metal prices lifted Zijin's overall gross profit margin to 38% from 24%, while the margin for mined products increased to 69.3% from 60.2%.Zijin continued to expand its resource base through acquisitions and exploration, while advancing major gold, copper, lithium, and molybdenum projects.The company said the Julong Copper Mine expansion had completed construction and started production, while lithium projects in several locations continued to ramp up.