Shares of Zhaojin Mining (HKEX: 01818) experienced a significant intraday rally, climbing over 13% at one point. At the time of writing, the stock was up 10.12%, trading at HK$19.15 with a turnover of HK$507 million.

The upward movement is attributed to a shift in monetary policy expectations. A weaker-than-expected US non-farm payrolls report, coupled with dovish commentary from Federal Reserve officials, has led to a sharp decline in market expectations for further interest rate hikes. This environment propelled international gold prices, which approached the $2,100 per ounce level. Analysis suggests that persistent pressures on employment and consumption, alongside growing financing demands from the US AI economy, may constrain the Fed's ability to adopt a substantively hawkish stance, potentially resulting in a policy that is hawkish in name but dovish in practice. It is noted that current gold prices may have already over-discounted expectations for rate increases.

Catalyst from a Major New Project

Further supporting the bullish sentiment is the company's major growth project, the Haiyu Gold Mine. A previous research report highlighted that the Haiyu mine, as the largest single gold deposit in China, possesses exceptional resource quality. It has proven gold reserves exceeding 560 tonnes with an average grade as high as 4.20 grams per tonne, making it a rare, super-large gold deposit in the country.

The Haiyu Gold Mine is expected to commence production by the end of 2027. Upon reaching full capacity, it is projected to yield at least 15 tonnes of gold annually. Due to its significant scale and high-grade characteristics, the mine's all-in sustaining costs are forecasted to be among the lowest in the industry upon full production, granting it formidable market competitiveness. This project is positioned as the core engine for Zhaojin Mining's future leapfrog development.