Bank of China International: Raising the target price of Zijin Gold International (02259) to HK$135.36 and predicts a further 13% increase in profit for the second half of the year

The Zhitong Finance App learned that Bank of China International released a research report stating that it raised the target price of Zijin Gold International (02259) from HK$111.34 to HK$135.36, reaffirming the “hold” rating. The bank said that the sharp rise in gold prices and a significant increase in gold production in the first half of the year contributed to a 1.8 times year-on-year increase in net profit of Zijin Gold in the medium term. The company's total gold production increased 44% year-on-year to 27.3 tons during the period, mainly due to the annual contribution of the acquisition of the Akyem mine in April last year and the acquisition of the Raygorodok mine and Progera mine in the second half of 2025.

Looking ahead to the second half of the year, according to Zijin Gold's annual production target, BOCI expects its gold production to increase 16% over the first half of the year, driving profit up 13% compared to the first half of the year, partly offset by the expected 9% month-on-month drop in gold prices. The bank also lowered Zijin Gold's 2026 profit forecast by 9% to reflect higher costs in the first half of the year; however, due to the expansion of Norton Gold Fields' ore processing capacity from 6 million tons to 8 million tons per year, the 2027 and 2028 production forecasts were raised, partially offsetting the impact of the increase in unit costs.