Against the backdrop of gold prices reaching new highs, China's largest gold mining company Zijin Mining is packaging its overseas gold operations for a public listing.
On September 4, according to sources familiar with the matter, Zijin Gold International, the international gold mining subsidiary of Zijin Mining Group, is planning an initial public offering in Hong Kong with potential fundraising exceeding $3 billion.
If the transaction proceeds as planned, Zijin Gold International could become the world's second-largest IPO this year, following Contemporary Amperex Technology Co., Limited (CATL), which raised $5.3 billion in its Hong Kong listing in May.
Sources indicate that investor interest in this IPO is exceptionally strong due to gold prices hovering near historic highs. The listing could potentially occur as early as this month, though the fundraising scale and timing may still change as related discussions are ongoing.
International financing institution IFR previously reported this development, noting that the company's IPO fundraising target has been raised from an initial approximately $2 billion to at least $3 billion.
Zijin Gold International's listing plan also adds new highlights to Hong Kong's IPO market. According to estimates, benefiting from a wave of Chinese company listings, Hong Kong's IPO market is expected to double its total fundraising to over $26 billion in 2024.
**Gold Bull Market Drives Listing Boom**
This IPO comes at a time when the gold market is performing strongly.
Driven by factors including central bank purchases, interest rate cut expectations, and investors seeking alternatives to the US dollar, gold prices recently broke through $3,500 to reach new highs. Multiple Wall Street banks including Goldman Sachs Group predict gold prices will continue rising, with Goldman even warning that gold could surge to nearly $5,000 if Federal Reserve credibility becomes damaged.
This trend has also boosted the capital market performance of other gold companies. Lao Pu Gold has seen its stock price repeatedly hit new highs since listing, with market capitalization exceeding HK$120 billion. Chifeng Jilong Gold Mining, as one of this year's first batch of "A+H" listed stocks, has gained over 60% since the beginning of the year.
Zijin Mining, as China's largest gold mining company, produced 73 tons of gold last year according to statistics, with 60% coming from overseas projects. The company targets increasing production to 100-110 tons by 2028.
According to Frost & Sullivan data, the company's gold reserves as of December 31, 2024, rank ninth globally, while its 2024 gold production ranks eleventh worldwide.
The prospectus shows that as of now, Zijin Gold International holds interests in 8 gold mines across gold-rich regions including Central Asia, South America, Oceania, and Africa, including core assets such as the Jilau/Talo gold mine in Tajikistan, Norton Gold Fields in Australia, and Aurora gold mine in Guyana.