Cathay Haitong Securities: First deposit to Zijin Gold International (02259) “Increase” rating target price of HK$163.8

The Zhitong Finance App learned that Cathay Pacific Haitong Securities released a research report saying that the 2026-2028 EPS is expected to be 1.05/1.25/1.62 US dollars/share, respectively, with reference to similar companies giving 20 times PE in 2026, giving the company a target price of HK$163.8 in 2026 (the exchange rate is calculated based on 1 US dollar to HK$7.8). The bank believes that the company's endogenous and episodic production will be released as scheduled.

Cathay Pacific Haitong Securities's main views are as follows:

Laying out global gold minerals, full of endogenous growth momentum

The company lays out high-quality gold minerals around the world. The company's gold mines are distributed in Central Asia, Africa, Australia and South America, and has outstanding capabilities in global mining operations. In 2025, the company's gold reserves (verified+credible) totaled 917 tons. In 2025, the company added 45.6 tons of gold equity resources, and the company's gold resources are abundant. The company's core mines, such as Regoldo, Akim, and Rosebel, have strong endogenous growth momentum, and are expected to continue to contribute to growth in 2026-2028.

Norton Goldfield completed construction and commissioning of an additional 2 million tons/year low-grade reactor immersion resource utilization project in June 2026. Ruigoduo added 10 million tons/year for the technical improvement project, which is expected to be put into operation in the 3rd quarter of 2028. The Rosebel Gold Preparation Plant expansion project of 10 million tons is expected to be completed in the 2nd quarter of 2028, and the new Saramacca 4 million tons/year extraction project is expected to be completed in the 3rd quarter of 2028. The Akim gold mining and selection system and tailings depot expansion project continues to advance. The processing capacity will increase from 8.5 million tons to 13 million tons after completion. The project is expected to be completed in the 3rd quarter of 2028. The Gilau-Taro Gold Mine has built a new 2 million tons/year beneficiation plant to process low-grade resources, with a total processing capacity of about 600 tons/day after completion. The project is expected to be put into operation in the first quarter of 2028.

Strong epitaxial mergers and acquisitions capacity, continuous implementation of the mineral layout

In April and October 2025, the company acquired the Akim Gold Mine in Ghana and the Regodo Gold Mine in Kazakhstan, and completed the restructuring (joint venture) of the Pogra Gold Mine in July 2025. In the first half of 2026, the production of Akim, Rigoldo, and Pogra gold mines was 4 tons, 3.3, and 1.3 tons respectively. Among them, the Akim gold mine increased 2.8 tons year on year. Backed by Zijin Mining, the bank believes that the company's future epitaxial mergers and acquisitions will continue to be implemented.

Good cost control and excellent operational capacity

In the first half of 2026, AISC costs for each of the company's mines remained stable. The AISC of Rosbell Gold Mine and Norton Goldfield was 1,701 and 2,146 US dollars/ounce respectively in the first half of '26, which was a year-on-year decline. The AISC for the Left Bank, Aurora, and Girau-Taro gold mines in the first half of '26 was 2,038, 1,682, and 1,298 US dollars/ton, respectively, with year-on-year increases. The company's gold production cost is relatively stable, and the company's operating capacity is excellent.

Risk Alerts

The commissioning of the new construction project fell short of expectations, and the price of gold fell sharply.