HK Stock Subscription | Zijin Gold, BlackRock cornerstone! How much meat is there?

Want to see$ZIJIN GOLD INTL(02259.HK) Conclusion at the bottom

【IPO Details】

【Company】

Zijin Gold is a gold mining company formed by Zijin Mining$ZIJIN MINING(02899.HK) through the spin-off and integration of overseas gold mines, primarily engaged in the exploration, mining, ore processing, smelting, refining, and sales of gold.

In 2024, Zijin Gold's gold reserves and gold production ranked 9th and 11th globally, respectively, based on comprehensive calculations.

The company holds interests in 8 major gold mines, including the Jilau/Taror Gold Mine in Tajikistan, the Left Bank Gold Mine in Kyrgyzstan, the Norton Goldfields Gold Mine in Australia, the Aurora Gold Mine in Guyana, the Buriticá Gold Mine in Colombia (via a Colombian trust arrangement), the Rosebel Gold Mine in Suriname, the Akyem Gold Mine in Ghana, and the Porgera Gold Mine in Papua New Guinea. Except for the Porgera Gold Mine, where it holds a minority interest, the company controls and operates all others.

According to Frost & Sullivan, the compound annual growth rate (CAGR) of gold production from 2022 to 2024 reached 21.4%, faster than other large companies, with a CAGR of net profit attributable to the parent company of 61.9%.

In 2024, the all-in sustaining cost (AISC) was $1,458 per ounce, ranking as the sixth lowest among the top 15 global gold mining companies.

【Business】

The company's business model involves producing gold concentrate, doré, and gold bars, which are sold to downstream refineries, precious metal traders, or financial institutions.

Among its 8 overseas gold mines, one is an ultra-high-grade gold mine.

Suppliers

The company primarily sources various materials such as diesel, ore-processing chemicals, and related consumables, as well as machinery and equipment for production operations, from Zijin Mining Group, local suppliers in operating regions, or original equipment manufacturers.

Purchases from the top five suppliers accounted for 30.7%, 30.4%, 31.2%, and 29.1% of total purchases during the same periods. Purchases from the largest supplier (Zijin Mining) accounted for 13.6%, 14.0%, 12.1%, and 14.9% of total purchases during the same periods.

Customers

The company's top five customers are Zijin Mining Group, precious metal and other non-gold metal refiners, and trading companies.

Contributions from the top five customers accounted for 70.2%, 78.2%, 84.2%, and 98.4% of total revenue during the same periods. Revenue contributed by the largest customer (Zijin Mining) accounted for 32.9%, 28.1%,42.6%, and49.6% of total revenue during the same periods, a relatively high proportion.

It can be seen that in 2025, the largest contribution to revenue growth still comes from the parent company, but beyond that, growth from other customers has also accelerated compared to 2024, entering double digits, which is generally good.

【Financials】Explosive growth in 2025 performance, driven by gold prices.

Key data can be seen directly in the table below:

Revenue: Growth rate gradually increased, rising to 42.34% YoY in the first half of 2025, with nearly RMB 5 billion in revenue growth in the first half alone, almost matching the full-year revenue growth in 2024. The largest contributor is still Zijin Mining, with the ultimate driver being the continued rise in gold supply and demand. Zijin Mining$Zijin Mining(601899.SH) plans to further accelerate gold production.

Gross margin: Gross margin surged in 2025, as gold prices continued to rise, with current gold prices up 40% from the end of 2024.

Net margin: Net margin surged in 2025, rising from 20.08% in 2024 to 31.3%.

【Industry】The outlook for gold needs no explanation—central bank purchases + interest rate cuts—with rising gold prices being the main factor behind the improved performance of gold mining stocks.

【Valuation】Cheap

Zijin Gold's business is relatively straightforward, primarily involving the sale of self-produced gold, without external purchases or smelting, resulting in higher gross and net margins. The valuation levels of the top five gold producers in China are as follows, with a focus on Zhaojin$ZHAOJIN MINING(01818.HK) and Chifeng$CHIFENG GOLD(06693.HK). Zijin Gold's current rolling PE is around 25, slightly higher than Chifeng's 23.35, which can be considered very cheap.$SD GOLD(01787.HK) $ZHONGJIN GOLD(600489.SH) 

This approach is similar to Jiaxin's—hot items + low prices for institutions to acquire—but Zijin's buyers come uninvited, reflecting its strong position.

【Margin Financing】9x, total of RMB 22.4 billion, hot.

Hotter than Hengrui but not yet at the level of Ningde's first-day RMB 50 billion. The main driver for gold is expected to last until year-end, while new energy expansion overseas still requires further development.

【Placement】Mechanism B, 10% locked for public placement.

Anchored with 5% allocated to H Zijin Mining shareholders, existing shareholders of 2899 can subscribe on their own via brokerage software.

【Cornerstone Investors】29, accounting for 49.9%, the top-tier configuration.

Domestic and international institutions participated collectively, even BlackRock joined. The top names include Singapore sovereign GIC, Hillhouse HHLAR, BlackRock$BlackRock(BLK.US) , SIML, Gaoyi, Fidelity, Jinglin, Baillie Gifford, etc.—too many familiar faces.

【Sponsors】Morgan Stanley + CITIC, top-tier configuration.

Subscription: Participate

There’s not much to say about Zijin Gold—strong position, solid fundamentals, bright prospects, top-tier cornerstone investors, top-tier sponsors, cheap valuation. In terms of expected gains, Old Cat gives a range of 30%~60% based on forward PE. There’s no conflict between Chery and Zijin in terms of cash/financing (major brokers), but there is a conflict in institutional placement for meat—everyone knows what to choose!Old Cat rating: 4-5 stars!

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