The 2023 performance report released by Zijin Mining shows that the company's ten-year development plan continues to advance vigorously: the main mineral products continue to increase in volume, especially the mineral copper reached 1.01 million tons, becoming the only enterprise in Asia that has broken the one million mark in mineral copper.
Against the backdrop of slowing global economic growth and shrinking profits in the mining industry, Zijin Mining achieved annual revenue of 293.4 billion yuan, net profit of 21.1 billion yuan and net operating cash flow of 36.9 billion yuan, up 9%, 5% and 29% respectively.
The high growth rate and the strong execution of strategic objectives have given the market a new definition of the value of Zijin Mining. Data show that the company's A shares and H shares rose 27% and 23% respectively at the end of 2023 compared with the end of the same period last year. Since the beginning of this year, the company's total market value has further risen to more than 400 billion yuan, ranking 22nd among A-share listed companies and 6th among global mining enterprises.
Both bronze and gold
High-quality global assets provide sustained growth momentum
"Zijin Mining's copper output has exceeded one million tons, achieving the development goal that the industry has been dreaming of for many years." China Non-ferrous Metals Industry Association said at a press conference on the operation of the industry in 2023.
According to the data of the Nonferrous Metals Association, in 2023, China's mines will produce 1.619 million tons of copper, and the copper production of Zijin Mining is equivalent to about 60% of China's total output.
Zijin Mining adheres to the general policy of "improving quality, controlling cost and increasing efficiency", and the main mineral products such as copper and gold have continued to grow. Since 2020, the compound annual growth rate of mineral copper production has been about 30%, making it the largest and fastest growing company in the world in terms of copper production, ranking among the top five in the world.
According to the annual report, Zijin Mining in the Congo (DRC), Serbia and China's Tibet three large-scale copper production base, is implementing a large-scale expansion of production technology reform plan, will continue to significantly increase the increase in copper, the next 3-5 years, only the existing project new capacity is expected to exceed 500,000 tons.
Due to economic uncertainty, as well as geopolitical tensions, gold is sought after as a major safe haven asset. Zijin Mining seized the market opportunity to accelerate the improvement of gold production capacity, 2023 annual gold ratio increased by 20% to 68 tons, ranking first among major listed mining enterprises in China and top ten in the world, since 2020, the average annual compound growth rate of more than 15%, is the fastest growing company in the world gold production capacity.
In 2024, the Pogra gold mine, one of the world's ten largest gold mines, has resumed production, and world-class gold mines such as Rosbel Gold mine in Suriname continue to expand production capacity, coupled with the construction of a number of medium-sized gold mines, the company's gold production will achieve sustained and rapid growth.
Industry insiders believe that although the annual metal production is growing at a high rate, there is also a synchronized growth of mineral resources, which is the cornerstone of Zijin Mining to achieve sustainable development.
It is understood that Zijin Mining has formed a certain advantage in mineral resources, holding equity resources of about 75 million tons of copper, about 3000 tons of gold, zinc (lead) more than 10 million tons, equivalent lithium carbonate more than 13 million tons, molybdenum about 3 million tons, silver about 15,000 tons.
In 2024, many of the world's leading mining companies have lowered their production plans, and Zijin Mining plans to still have a substantial growth in mineral product production. According to the annual report, the company plans to achieve 1.11 million tons of mineral copper, 73.5 tons of mineral gold, 470,000 tons of mineral zinc (lead), 25,000 tons of equivalent lithium carbonate, 420 tons of mineral silver, and 9,000 tons of mineral molybdenum.
Common development
Build a popular mining development model
Refinitiv, one of the world's leading rating companies, updated its latest ESG score in January 2024, and Zijin Mining ranked first among 671 companies in the global metals and mining industry.
According to the review, in the past year, Zijin Mining's S&P CSA rating, Morningstar rating and other global mainstream ESG ratings have been comprehensively improved, and ESG performance has entered the first echelon of the industry.
Chen Jinghe, chairman of Zijin Mining, said that we take common development as the value, never sacrifice the interests of others in exchange for their own development, and achieve a win-win situation such as efficient development of projects, improvement of residents' lives, and a better ecological environment, which is the valuable experience of the company's "going out" to achieve long-term stability and long-term development.
As an important participant in the global mining market, Zijin Mining regards ESG as a "compulsory course" for global development, and proposes to achieve carbon peak by 2029 and basically achieve carbon neutrality by 2050, which is the solemn commitment of the company.
It is understood that in the past year, the company has comprehensively strengthened the management of carbon emission throughout the life cycle of mines, incorporated the completion of double carbon indicators into the assessment of the economic responsibility system, issued the company's "double carbon work guidelines" to guide the decarbonization of the life cycle of mines, and the annual carbon emission intensity of 1.53 tons / 10,000 yuan of industrial added value, while maintaining rapid growth in performance, achieved a year-on-year decline of 1.46%.
With the world's highest standards to promote the construction of green ecological mines, Zijin Mining has formed a number of high-level green mine reconstruction cases in the world. The company's global projects have been equipped with a downstream online monitoring system, the annual investment in environmental protection funds invested 1.37 billion yuan, planted 3.86 million flowers and trees, restored the land area of 6.22 million square meters, the national green mine increased to 12, the national green factory increased to 7. The company's global ecological and environmental protection concept has been highly appreciated by the countries and regions where it is located.
"Developing mining for the benefit of society" has always been the purpose and original intention of Zijin Mining, and the company insists on sharing development results with shareholders, investors, project host countries and communities, employees and collaborators, and other related parties.
According to statistics, in 2023, the company's global direct economic contribution is 324.7 billion yuan, of which the social contribution is 56.2 billion yuan, and 827 million yuan is invested in the global community, including 10 million yuan donated to the earthquake disaster area in Jishishan, Gansu Province. In September 2023, the company was awarded the "China Charity Award" for the fourth time.
