DBS has published a research report indicating that ZIJIN MINING's (02899) growth is being driven by active mergers and acquisitions and strong operational capabilities. The firm has maintained its "Buy" rating on ZIJIN MINING and increased its target price for the H-shares to HK$55. In 2024, the company ranked fifth globally in copper reserves and fourth in mined copper production, while also holding the sixth position for both global gold reserves and mined gold production. This robust market standing has been achieved through aggressive M&A activity and a powerful operational capacity that leverages its industry expertise and experience. Regarding financial performance, the company's C1 cash cost for copper decreased by 14% year-on-year in 2024 to USD 0.93 per pound, placing it within the top 20% globally and maintaining its competitive position in sustainable costs among gold miners. Optimistic market sentiment towards copper and gold prices is expected to support its profit growth, with the firm forecasting a compound annual growth rate of 44% in profits through 2027. Positive sentiment towards gold is being reinforced by central banks increasing their gold reserves and speculative demand related to exchange-traded funds. On the other hand, copper market supply shortages are anticipated to intensify due to mine disruptions, declining ore grades, and persistent demand fueled by the energy transition and the artificial intelligence boom. Consequently, DBS expects the average gold price and LME copper price to rise by 39.3% and 12.1% by 2026, reaching USD 4,700 per ounce and USD 11,000 per tonne, respectively.