On January 16, Zijin Mining Group Company Limited(601899) (601899. SH) released the announcement of performance increase in 2021. It is estimated that will realize a net profit of about 15.6 billion yuan in 2021, an increase of about 139.67% year-on-year; it is estimated that the non net profit deducted in the same period will be about 14.5 billion yuan, with a year-on-year increase of about 129.36%.
Public information shows that Zijin Mining Group Company Limited(601899) is a large multinational mining group focusing on the exploration and development of metal mineral resources such as gold and copper and the application research of engineering technology. The actual controller is Chen Jinghe, known as the “Golden King of China”.
As for the main reasons for performance changes, Zijin Mining Group Company Limited(601899) mentioned three aspects:
First, the output of main mineral products increased. the output of main mineral products in 2021 was 47.5 tons of mineral gold, a year-on-year increase of 17.28%; 584000 tons of mineral copper (including 42000 tons of equity output of kamoa copper industry), a year-on-year increase of 28.92%; Mineral zinc (lead) was 434000 tons, a year-on-year increase of 14.81%; 309 tons of mineral silver, a year-on-year increase of 3.34%; 4.248 million tons of iron concentrate, a year-on-year increase of 9.71%;
second, the prices of various products increased. in 2021, the sales price of mineral copper, mineral zinc, mineral silver and iron concentrate increased year-on-year, and the sales price of mineral gold decreased year-on-year;
Third, according to the underwriting agreement between the group and kamoa copper, a subsidiary of kamoa holdings, a joint venture company of the group, Jinshan Hong Kong underwrites the mineral copper of kamoa copper in a certain proportion. At the end of the period, some inventories were not sold outside the group, which has offset the net profit attributable to the shareholders of the listed company of about 400 million yuan in the reporting period.
On January 14, Zijin Mining Group Company Limited(601899) the board meeting formulated the main product plan indicators for 2022, including 60 tons of mineral gold, 860000 tons of mineral copper, 480000 tons of mineral zinc (lead), 310 tons of mineral silver and 3.2 million tons of iron concentrate. compared with the output in 2021, the output of mineral silver is basically unchanged, the iron concentrate does not increase but decreases, and the expected output of mineral copper will increase by 47.3% year-on-year.
One of the reasons for the high expectation of mineral copper output is that Zijin Mining Group Company Limited(601899) just announced on December 27, 2021 that the first phase project of Tibet Julong copper industry, China’s largest world-class copper mine project, was completed and put into operation. In addition, after the phase I project of Qulong copper mine is put into operation, coupled with the output of zhibula copper mine, Julong copper is expected to produce 120000 to 130000 tons of copper in 2022; After the first phase of the project is completed, the annual output of copper is about 160000 tons.
After has a lot of idle funds, Zijin Mining Group Company Limited(601899) recently has a number of actions related to financial business and entrusted wealth management.
On January 14, the board of directors of Zijin Mining Group Company Limited(601899) deliberated and approved the plan for Zijin Mining Group Company Limited(601899) investment (Shanghai) Co., Ltd. to carry out financial business in 2022, saying that it agreed to allow subordinate enterprises in the company’s financial sector to carry out financial business on the basis of the original authorized amount (RMB 2.1 billion and US $100 million or equivalent foreign currency) without affecting the company’s normal operation and effective risk control, The newly authorized amount is RMB 2.3 billion, with a total authorized amount of RMB 4.4 billion and US $100 million or equivalent foreign currency, accounting for about 2.76% of the company’s latest audited total assets and 8.91% of the net assets attributable to the parent company.
Of the 2.3 billion yuan, it is authorized to use no more than 2 billion yuan for securities investment, mainly in industries related to the company’s main business or upstream and downstream. Generally speaking, these funds will flow to secondary market stocks, stock fixed increase, ETF, whole market commodity futures / options, stock index futures / options, foreign exchange derivatives business and public and private funds with financial derivatives as the main investment targets.
On the same day, the board meeting also considered and approved the proposal on carrying out financial management business in 2022. Zijin Mining Group Company Limited(601899) and Zijin Mining Group Company Limited(601899) Group Finance Co., Ltd. will invest assets with a maximum daily balance of no more than 3 billion yuan and 1.2 billion yuan into securities, fixed income or low-risk financial products, trust products, asset management products, funds and other financial products.
On January 17, Zijin Mining Group Company Limited(601899) shares closed at 9.68 yuan, down 1.43%, with a total market value of 254.9 billion yuan. A block transaction occurred on the same day, with a transaction amount of 3.6244 million yuan. The buyer’s business department is Citic Securities Company Limited(600030) Shanghai branch and the seller’s business department is Citic Securities Company Limited(600030) Shanghai Branch.
