Jingu Cai News | Haitong Securities released a research report stating that Zhaojin Mining (01818) has set a goal of global strategy. On the basis of achieving half of the output in the province and half outside the province, it strives to create a strategic development new situation of half in China and half overseas, and build a world-class gold mining company with international competitiveness. Zhaojin Mining successfully held 100% equity of Tietto Mineral through a tender offer, indirectly holding 88% equity of Abujar Mine. As of the end of 2023, the mine has a ore resource of 124 million tons, with a grade of 1.0 g/ton, and a gold metal content of 119 tons. It is expected that the annual average gold production during the mine service period will be 5.3 tons, and the full sustaining cost will be 982 US dollars/ounce.
The bank continued to point out that considering that the offshore gold mine is still in the construction period, the bank selected the PB valuation method to value the company, and taking into account the impact of acquiring Tietto Mineral, the bank expects the company's BPS for 24-26 to be 5.89, 6.38 and 7.26 yuan/share respectively. Referring to comparable company valuations and historical valuations of the company, the bank gives a 2.6-2.8 times PB valuation for 24, corresponding to a reasonable value range of RMB 15.30-16.48/share and HKD 16.46-17.72/share (calculated based on the exchange rate of HKD/CNY=0.93 on July 1), and gives a first-time coverage rating of "outperform the market".