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 Zijin Mining Group Co., Ltd.

  (Public, SHA:601899)

Company’s Fact

Zijin Mining Group Co., Ltd. is a famous gold mining enterprise and one of the Top 500 Enterprises Top 500 Enterprises in China, the Company is an H-share listed at the Hong Kong Stock Exchange. ZMG was included in the FTSE Mining sector Indexes on 20 December 2004; added to the Dow Jones China Offshore 50 Index on 20 March 2006, and it entered into the FTSE/Xinhua China 25 Index and on 20 October 2006. Based on FORBES record, Zijin Mining Group ranked 17th among the name list of China Top Enterprises and 16th among the list of China 's Overseas Listed Companies with the Most Investment Value (1st of all mining enterprises) in 2006.   

The Company focuses on non-iron metals such as gold and copper, Zijinshan Gold Mine, the core enterprise of Zijin Group, has been developed into a gold mine that boasts the largest utilizable and ensured reserves of monomer mines, the biggest scale of ore mining & mineral processing, the greatest amount of gold production, the lowest beneficiation feed grade of ores, the lowest unit cost of ore processing and the best economic performance in China. Its composite cost for the gold produced from mining is RMB 58.53 per gram and its cost control level is at the leading place in the country. The Gold Smelting Plant of Zijin Mining Group has been added to the directory of gold suppliers by the London Bullion Metal Association (LBMA). Standard gold produced by Zijin is sold all over the world. Its gold products are approved by ISO Standards of Product Markings.

According to the statistics of China Gold Association, total gold production of China was 240.078 tons in 2006, 179.848 tons of which were produced from mining with an increase of 0.72% over the previous year. Zijin Group had 49.28 tons of gold output and the gold produced from mining reached 20.70 tons in 2006, respectively accounting for 20.53% of China 's total gold production and 11.51% of the gold produced from mining in China during the same year. Total profits of the gold mining industry of China amounted to RMB 6.1085 billion Yuan in 2006, and Zijin Group made the profit of RMB 1.705 billion Yuan (profits excluding gold itself) or 27.91% of those of whole China .

Zijin Mining has become the largest shareholder of Ridge Mining, a listed company on the London Stock Exchange, and has made via tender offer the successful acquisition of Monterrico, another listed company on the London Stock Exchange. At the end of 2006, according to the calculation of equity interests, the ensured metal (ore) resources/reserves of the Group Company were about 455 tons of gold (57 tons of which were associated gold), 151 tons of platinum & palladium, 6.7 million tons of copper, 2.38 million tons of zinc, 544,600 tons of nickel, 400,000 tons of lead, 260,000 tons of molybdenum (30,000 tons of which were associated molybdenum), 100,000 tons of tin, 188 million tons of iron ore, and 300 million tons of coal. By the end of 2006, the Group Company had obtained 179 prospecting rights covering a total area of 5,972 square kilometers and 27 mining rights covering a total area of 41.3 square kilometers. 

Financial Overview

7.88
+0.24 (3.14%)
Jul 2 - Close    Open:  7.75      Mkt Cap:  114.59B      P/E:      -      Dividend:      -    High:  8.04      52Wk High:  22.00      F P/E:      -      Yield:      -    Low:  7.65     52Wk Low:  7.37     Beta:      -      Shares:  14.54B    Vol:  36.26M      Avg Vol:      -      EPS:      -      Inst. Own:      -

Key Stats & Ratios

Date                Open High   Low     Close Volume

2-Jul-08         7.75    8.04    7.65    7.88    36,262,450

1-Jul-08         7.85    7.95    7.56    7.64    21,840,910

30-Jun-08      8.05    8.15    7.60    7.80    35,694,790

27-Jun-08      7.94    8.70    7.90    7.99    86,551,540

26-Jun-08      8.04    8.46    7.96    8.21    66,903,540

25-Jun-08      7.68    8.30    7.65    8.10    62,818,460

24-Jun-08      7.45    7.85    7.39    7.76    41,538,640

23-Jun-08      7.46    7.95    7.39    7.65    53,056,380

19-Jun-08      8.05    8.09    7.37    7.37    56,694,830

18-Jun-08      7.62    8.30    7.51    8.19    71,591,730

17-Jun-08      7.56    8.23    7.43    7.77    55,797,980

16-Jun-08      7.84    7.98    7.47    7.57    29,941,930

13-Jun-08      8.20    8.25    7.80    7.83    31,425,730

12-Jun-08      8.06    8.32    7.86    8.30    50,883,560

11-Jun-08      8.15    8.23    7.90    8.05    38,404,320

10-Jun-08      8.86    8.92    8.26    8.27    54,706,250

6-Jun-08        9.19    9.38    9.10    9.18    28,315,380

5-Jun-08        9.03    9.50    8.95    9.26    52,422,010

4-Jun-08        9.20    9.47    9.00    9.13    54,529,810

3-Jun-08        9.63    9.99    9.32    9.44    178,418,370

2-Jun-08        8.66    9.53    8.57    9.53    98,566,460

The depreciation of U.S. dollars and the international price of crude oil have been non-stop; however it again stimulates the international price of gold to increase. So, A stock market, including the Shandong Gold Group, Zhongjin Gold Corporation Limited, and other gold stocks have refused to drop and gradually turning up its route respectively. Zijin Mining as a new gold stocks with a price of less than eight yuan, and also China's largest mineral production enterprise, has been benefited from the skyrocketing international price of gold.

Zijin Mining’s gold mining output is the largest in China, it has a capacity of mineral resources throughout the country (20 provinces), as well as Russia, Tajikistan, Peru and other countries. The Company and its subsidiaries have a total of 32 mining rights and the total minig area of 54.02 square kilometers, in addition, also owns 165 prospecting and mining area of total area of 5074.36 square kilometers. The company also involved in copper, zinc, iron and other metal mining and smelting election, it is a comprehensive mining company. In 2007 Zijin Mining's gold production reached 52.3 tons, ranked 10th in the world. As at the end of 2007, the company's reserved gold to 638 tons, 9.37 million tons of copper and zinc to 3.19 million tons. The A-share fund raise will be used mainly for acquisition of mines and mine expansion.

Zijin Mining’s full-diluted earning per share in 2008 and 2009 will be 0.24 yuan and 0.27 yuan, an increase of 38% and 14%. A reasonable interval for the investment value of 8.6 to 12.8 yuan in Zijin Mining A shares, the corresponding 2008 earnings ratio is 36 times to 53 times, compared to the issue price 21% to 80% of the premium level.

Topview data show that, coming to June, there had been continuous large-scale growth of its fund. This is as an absolute low price for a new share, can become a vanguard in market rebound. Investor should pay close attention.