Against the backdrop of continuously rising global gold prices and heightened market risk-aversion sentiment, the Hong Kong Stock Exchange welcomed the listing of ZIJIN GOLD INTL (02259), the most anticipated international gold mining company with Chinese background this year. As a highly sought-after new stock, ZIJIN GOLD INTL issued a total of 348,990,700 shares, raising approximately HK$24.98 billion, making it the second-largest IPO in Hong Kong this year, trailing only CATL.

During the subscription period, market response was exceptionally enthusiastic, with margin financing oversubscribed by more than 134 times on the first afternoon. The offering attracted 29 global top-tier institutions as cornerstone investors, including Singapore's Government Investment Corporation (GIC), BlackRock, and Hillhouse Capital, with their combined subscription ratio reaching 49.9%, accounting for nearly half of the global offering shares.

On its debut day, the company's stock performance was remarkably strong, opening at HK$111.5, representing a significant 55.75% premium over the offering price of HK$71.59. By market close, shares finished at HK$120.60, up 68.46%, with total market capitalization exceeding HK$316.4 billion, demonstrating capital market recognition and enthusiasm for this gold "aircraft carrier."

**Dual-Engine Drive of Resources and Operations: Gold Giant Enters Independent Valuation Era**

The core motivation behind ZIJIN GOLD INTL's independent listing lies in addressing the long-standing "valuation mismatch" problem facing its gold business. As the "hidden giant" within Zijin Mining Group, its gold segment achieved 73 tons of production in 2024, with net profit scale far exceeding any domestic pure gold mining enterprise. However, under the parent company's comprehensive mining valuation system, the high value of its gold business was significantly underestimated.

Through integrating all gold mines outside China and spinning them off for independent listing, ZIJIN GOLD INTL can more clearly demonstrate its true value as a globally leading gold mining company.

From a fundamental business perspective, ZIJIN GOLD INTL's robust resource base and global business layout form the cornerstone of its core competitiveness. As of the latest practicable date, the company holds interests in 8 gold mines across core global gold resource-rich regions including Central Asia, South America, Oceania, and Africa, with 7 being controlling operational mines. According to Frost & Sullivan data, by the end of 2024, the company's gold reserves and production ranked 9th and 11th globally, respectively.

Specifically, as of June 30, 2025, the company's attributable proven and probable ore reserves contain approximately 756.5 tons (24.308 million ounces) of gold metal, with total mineral resources estimated at approximately 1.176 billion tons, including gold metal mineral resources of approximately 1,768.4 tons (56.797 million ounces). This provides solid resource assurance for future sustained stable and increased production, becoming a key factor attracting investors.

Beyond resource endowment, ZIJIN GOLD INTL's more notable strength lies in its high operational efficiency and "turning stones into gold" merger and acquisition integration capabilities. The company inherited Zijin Mining's leading technology in processing low-grade, difficult-to-process ores and over 30 years of rich project experience. Due to relatively late entry into the global gold mining field, most mines acquired by the company initially faced operational management issues or insufficient resource exploration, often operating at losses.

However, leveraging strong technical capabilities and management expertise, the company successfully "revitalized" these assets. For example, Guyana's Aurora Gold Mine acquired in 2020 and Suriname's Rosebel Gold Mine acquired in 2023 both achieved rapid turnaround within one year of acquisition, becoming industry classic cases.

This strong cost control capability is directly reflected in financial data. In 2024, the company's All-in Sustaining Cost (AISC) was $1,458 per ounce, ranking sixth lowest among the world's top fifteen gold mining companies. Meanwhile, mining cost per ton decreased continuously from $38.7 in 2022 to $32.7 in the first half of 2025, while processing cost per ton also declined from $20.6 to $17.2, demonstrating effective refined management.

**Performance Growth and Valuation Enhancement: Dual Engines Launch "Davis Double Play"**

Benefiting from the "double impact" of production volume and gold prices, the company's financial performance has been exceptionally bright with strong growth momentum. From 2022 to 2024, the company's gold production compound annual growth rate reached 21.4%, far exceeding industry average. During the same period, company revenue increased from $1.818 billion to $2.99 billion, with a compound annual growth rate of 28.2%; attributable net profit surged from $184 million to $481 million, achieving an astounding compound annual growth rate of 61.9%.

Entering 2025, growth momentum further accelerated, with first-half revenue reaching $2 billion, up 43% year-over-year, while net profit soared 143% to $520 million.

Profitability improvement is also reflected in profit margins, with gross margin rising from 34.1% in 2022 to 46.5% in the first half of 2025, while net margin increased from 16.0% to 31.3%, reaching or even exceeding levels of international giants like Newmont. Additionally, the company's 2024 Return on Equity (ROE) reached 21.4%.

From a valuation perspective, ZIJIN GOLD INTL's pricing offers significant attractiveness. Based on the offering price of HK$71.59, the company's total market capitalization is approximately HK$187.9 billion, corresponding to a P/E ratio of about 23 times based on 2025 projected net profit. Compared to peer companies, its valuation is at relatively low levels. Considering the company's growth rate far above industry average and excellent cost control capabilities, this valuation level reserves ample room for future stock price appreciation. Some analysts believe that as the company's performance continues to be released, it may welcome a "Davis Double Play" of both earnings and valuation enhancement.

Looking ahead, ZIJIN GOLD INTL's growth path is clear and determined. The company plans to continue expanding resource reserves and gold production through a dual-wheel drive strategy of "organic growth + external acquisitions." On one hand, the company will continue technical upgrades and expansion construction of existing mines, such as capacity enhancement for core assets like Ghana's Akyem Gold Mine and Suriname's Rosebel Gold Mine. On the other hand, the company will actively seek acquisition opportunities globally, utilizing IPO proceeds to further expand its territory.

The net proceeds from this IPO amount to approximately HK$24.47 billion, with about 33.4% (HK$8.182 billion) specifically allocated for paying the consideration for acquiring Kazakhstan's Raygorodok Gold Mine, demonstrating the company's clear expansion blueprint.

Regarding future stock price trends, the market generally holds an optimistic attitude. According to earnings forecasts, without considering newly acquired mines, the company's 2025-2027 P/E valuations are only 19/15/14 times, below industry average levels. Considering its high growth potential, it should command a valuation premium. Taking into account continued gold price appreciation and the company's sustained steady growth in gold production over the coming years, analysts project the company will achieve attributable net profits of $1.293/$1.649/$1.761 billion for 2025-2027.

Notably, the above earnings calculations do not consider the Kazakhstan gold mine not yet consolidated. Once the acquisition is completed and consolidated, the company's profitability is expected to improve further.

Under the macroeconomic environment where global central banks continue increasing gold holdings and geopolitical risks intensify, the long-term bull market pattern for gold is expected to continue. As a leading enterprise in the gold sector combining both scarcity and growth potential, ZIJIN GOLD INTL's listing not only provides investors with a quality tool to share in gold bull market dividends, but its own value revaluation potential may also drive value enhancement across the entire precious metals sector.