The lush landscapes of western Fujian in early summer set the stage for the 2025 annual general meeting of Zijin Mining Group Company Limited (hereinafter referred to as "Zijin Mining"). Analysts from renowned domestic and international institutions, shareholders, and their representatives gathered to discuss the company's "resilient breakthrough" following its ascent to a high plateau. Against a complex backdrop of volatile high commodity prices and frequent geopolitical conflicts, investors are keenly interested in understanding how Zijin Mining will navigate the path forward and ensure the precise execution of its ambitious strategy.
"Zijin's scale is already among the global leaders, yet it still maintains robust growth, which is rare among international mining companies," noted a chief analyst from a prominent Hong Kong institution in attendance.
New Vitality: Breaking New Ground and Laying Foundations at a High Plateau
At the beginning of 2026, Zijin Mining's new management team, after thorough industry analysis and strategic planning, formulated an even more ambitious and challenging "Three-Year Plan and Ten-Year Vision": by 2028, to rank among the top three globally in the production of copper and gold mineral products; by 2035, to fully establish itself as a "green, high-tech, top-tier international mining group."
To translate this blueprint into reality, the new management team has chosen to focus on "production ramp-up" as a key strategy. "The company has explicitly added a 'production ramp-up' dimension to its growth strategy. The aim is to fully seize the current market opportunity of high metal prices, strive to exceed expectations in the commissioning, production, and efficiency of major incremental projects, accelerate the release of capacity for key minerals, and speed up the efficient transformation of resource advantages into economic and social benefits," stated Zou Laichang, Chairman of Zijin Mining, in response to investor inquiries.
The inclusion of "production ramp-up" not only signifies the new management's rejection of complacency and its commitment to advancing from a position of strength but also reveals Zijin's unique cost-control philosophy: increasing production is itself the most effective way to reduce costs. Spreading fixed costs through economies of scale provides the resilience to withstand cyclical fluctuations. In the first quarter, Zijin Mining achieved record-high performance, with profits surpassing 20 billion yuan, nearly doubling year-on-year, driven by elevated production of its primary metals.
"Zijin Mining's strategic continuity is excellent. Against a backdrop of frequent geopolitical conflicts, the company's management has maintained stability and progress, with the first-quarter performance, in particular, providing significant confidence to the market," remarked an analyst from a Shanghai-based institution, echoing the sentiment of many investment firms.
However, "revenue expansion" through increased production is only one side of the coin. With commodity prices fluctuating at high levels, cost control remains a key concern for investors. "Digitization and intelligentization are essential paths to achieving 'intrinsic safety' and reducing costs," Zou Laichang emphasized.
The management's answer lies in a systematic cost-control initiative driven by new quality productive forces: Shanxi Zijin Mining Co., Ltd. has achieved unmanned mining across all levels; the Zhibula mine of Tibet Julong Copper Co., Ltd. has implemented unmanned transportation; the Zijinshan Gold-Copper Mine is striving to build a global benchmark for unmanned and intelligent open-pit mining; the first commercially operated unmanned driving project in the overseas sector has commenced at Norton Gold Fields...
"The core cost in mining lies in transportation. Replacing diesel with electricity has led to a significant reduction in costs." The evolution of digital intelligence and the upgrade to green equipment complement each other, forming another crucial measure to lower energy consumption costs. This year, Zijin Longjing's 140-ton pure electric mining truck was successfully launched and saw its first batch of scaled deliveries, with positive application results at Zijinshan and Julong Copper mines. Data shows that electric mining trucks reduce transport energy consumption by over 17% compared to diesel vehicles, with stable daily transport exceeding 2,000 tons and equipment availability exceeding 90%.
"The company plans to essentially replace traditional fuel vehicles with new energy mining trucks within the next three years," stated Lin Hongfu, President of Zijin Mining, providing a clearer roadmap.
Sustained and stable release of growth potential and cost-control benefits requires more solid support. Facing the intensely competitive global mining landscape, Zijin Mining's new management has demonstrated strong strategic resolve and refined management capabilities. "Resources are the foundation of a mining enterprise. We adhere to a dual-drive strategy of precise acquisitions and low-cost independent exploration to continuously solidify our resource base," Zou Laichang stated. Regarding strategic positioning, Zijin Mining will conduct in-depth assessments of country risks, focusing future overseas M&A efforts on regions within China and neighboring countries, accessible by land, and with controllable risks.
Since the beginning of the year, by strengthening internal refined management, Zijin Mining has promoted decentralization of authority, process optimization, and enhanced the coordinating role of its business divisions as "small groups," improving authorization and delegation mechanisms to "let those who hear the gunfire command the battle." This is gradually shifting the operating model from "China headquarters managing the globe" to "a global system operating globally."
Activating internal human motivation is key to the efficient operation of globalized management. In April, Zijin Mining selected a group of young key talents with international and professional characteristics for a specialized development program, using ability and value contribution as benchmarks. In May, it launched an employee stock ownership plan covering nearly 4,500 key personnel, the most extensive coverage in its history.
"Within Zijin's management, there is a high proportion of expert-type managers, which is very rare both domestically and internationally in the mining circle," commented an overseas fund manager in an interview. The combination of professional and managerial capabilities equips the company with a "twin-engine" drive, continuously injecting vitality for future development.
New Opportunities: Value Realization and Certainty Beyond the Cycle
"Total dividends for 2025 amounted to 16 billion yuan. Dividends over the next three years will cumulatively be no less than 35% of annual profits." "Providing individual investors with stable cash flow twice a year helps stabilize long-term holding confidence. During market volatility this year, Zijin Mining's management acted decisively, swiftly launching and implementing a buyback plan in the secondary market, which brought strong confidence to the capital market." Investors have expressed high recognition of Zijin Mining's dividend plan.
An individual investor offered suggestions regarding market value management, shareholder returns, and investor relations, stating, "I believe Zijin Mining will be even more brilliant three years from now." A Hong Kong institutional investor suggested during the Q&A session that the company could learn from overseas mining peers to promote a valuation shift from P/E ratios to a discounted cash flow model. Zou Laichang responded, "Many suggestions are excellent, and the board will study them carefully. The company is also continuously researching how to better reward shareholders and striving to meet everyone's expectations."
While stock price movements are difficult to predict, the certainty of Zijin Mining's long-term value is relatively clear. Representing a major shareholder, Yan Chenglong, County Head of Shanghang County, attended the meeting and stated that mining is a foundational industry for economic development and green transformation. Zijin Mining, with its solid resource reserves and strong technological advantages, has the capability to break through and navigate cycles. The new leadership team understands mining, the front lines, and the market, and will surely reward shareholders' trust and support with continuously improving operating performance and stable, sustainable value returns. Shanghang County will fully support the company's high-quality development, helping Zijin accelerate its growth.
Dividends and buybacks together underpin the certainty of value realization, while the lithium segment is becoming Zijin Mining's "third growth curve" for navigating cycles. Responding to investor questions about lithium carbonate costs and progress, Lin Hongfu stated, "The company's lithium carbonate production cost is between 50,000 and 60,000 yuan per ton. The supply of lithium carbonate will be in a relatively tight balance over the next 10 to 15 years. We are very optimistic about the profit contribution from this segment."
In 2026, Zijin Mining plans to produce 120,000 tonnes of lithium carbonate equivalent, with plans to reach a capacity of 270,000 to 320,000 tonnes equivalent by 2028, positioning it to become one of the world's largest lithium producers. "Currently, most investors buying Zijin focus on the gold and copper segments; the market has barely factored lithium into the valuation," noted an individual investor from Guangzhou, who believes that lithium's valuation is expected to be recognized as subsequent capacity is released.
While the market still debates short-term fluctuations in metal prices, Zijin has already built anti-cyclical capabilities from a "metal portfolio" perspective. The company's minor metals segment is also gradually becoming a "cushion" for performance. "It's not a matter of whether we should do it; these are by-products inherently present," Zou Laichang explained. Several of Zijin's mines contain associated minor metals like tungsten, tin, and molybdenum. Valuable metals should not be wasted but should serve as a supplement to smooth cyclical fluctuations, bolstering earnings during downturns and enhancing them during upturns.
According to the construction plan, Zijin Mining's molybdenum output will rank among the global leaders, and tungsten capacity is targeted to reach 8,000 tonnes. "These are tangible supplements," Zou Laichang revealed, adding that the company will continue to expand into strategic minor metal mineral types if high-quality, suitable targets are available.