Goldman Sachs has reaffirmed its "Buy" rating on Zijin Mining (02899, 601899.SH), keeping its 12-month target price unchanged at HK$52 for the Hong Kong-listed shares and RMB 50 for the A-shares. The investment bank raised its profit forecasts for Zijin Mining by 3% to 7% for the current and next fiscal years, citing the global commodities team's updated copper price projections and the company's 2025 financial performance. Goldman Sachs anticipates that rising gold and copper prices, combined with production growth, will drive a 55% increase in Zijin's recurring net profit to RMB 78.9 billion in 2026.

According to the report, Zijin Mining reported a net profit of RMB 51.8 billion for the 2025 fiscal year, with earnings per share of RMB 1.95, representing year-on-year growth of 62% and 60%, respectively, in line with prior profit alerts. Excluding one-time items such as fair value gains and exchange losses, recurring net profit was RMB 50.9 billion, up 56% year-on-year, meeting both the bank's and market expectations. The company declared a full-year dividend of RMB 0.6 per share, with a payout ratio of approximately 31%, remaining largely stable compared to the previous year.

Goldman Sachs also raised its gross profit forecasts for mined gold by 2% to 3% for the current and next fiscal years, reflecting lower sales costs in the 2025 results. The bank expects Zijin's mined gold production to increase by 12% in 2026, while unit sales costs for mined gold are projected to rise by 6% year-on-year. Additionally, gross profit forecasts for mined copper were adjusted upward by 0% to 15% for the same period, reflecting the global commodities team's higher copper price outlook, partially offset by higher sales costs reported in the 2025 results. Zijin's copper production is expected to grow by 7% in 2026, with unit sales costs for mined copper anticipated to increase by 4% year-on-year.