S&P Global Ratings has revised Zijin Mining Group's (HKG:2899, SHA:601899) outlook to positive from stable while maintaining its BBB- long-term issuer credit rating, according to a Wednesday release.
The actions stem from S&P's expectations of healthy operating cash flow and earnings expansion over the next two years.
The China-based diversified metal producer will potentially achieve compound annual growth rates of 8% for copper output and 14% for gold output between 2024 and 2026, driven by strong metal prices, S&P said.
The rating agency forecasts Zijin's operating cash flow to hit between 52 billion yuan and 54 billion yuan annually between 2025 and 2026, rising from 44 billion yuan in 2024.
S&P expects the company to improve its debt-to-EBITDA ratio towards its 2x upgrade trigger given high capital expenditure and potential M&A spending.
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