Gold Ten Data, October 21, Goldman Sachs issued a report, pointing out that Zijin Mining (02899.HK) third-quarter performance meets the bank's expectations and surpasses market expectations. Operating cash flow for the first three quarters increased by 40% year-on-year, and free cash flow increased by 9 times year-on-year. Net debt ratio decreased from 115% at the end of last year to 90% in the third quarter. The bank lowered its earnings forecast for Zijin Mining for the next two years by between 2% and 5%, reflecting the downward revision of copper price forecasts and the expected production of Kamoa copper mine in the Congo (Gold). Part of it is offset by an upward revision of gold price forecasts. The bank lowered its copper production forecast for Zijin Mining for the next two years by 2%, reflecting the downward production guidance of Kamoa copper mine due to unstable power supply, but still expects an annual increase of 8% to 10% in copper production during the period. Zijin recently announced the acquisition of Akyem gold mine, which may bring a 7% increase in gold production and a 2% increase in profits next year. The bank maintains a buy rating and a target price of HKD 21.5 for H-shares.
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Goldman Sachs: Zijin Mining's third-quarter performance roughly meets expectations, with improved free cash flow generation
Gold Ten Data, October 21, Goldman Sachs issued a report, pointing out that Zijin Mining (02899.HK) third-quarter performance meets the bank's expectations and surpasses market expectations. Operating cash flow for the first three quarters increased by 40% year-on-year, and free cash flow increased by 9 times year-on-year. Net debt ratio decreased from 115% at the end of last year to 90% in the third quarter. The bank lowered its earnings forecast for Zijin Mining for the next two years by between 2% and 5%, reflecting the downward revision of copper price forecasts and the expected production of Kamoa copper mine in the Congo (Gold). Part of it is offset by an upward revision of gold price forecasts. The bank lowered its copper production forecast for Zijin Mining for the next two years by 2%, reflecting the downward production guidance of Kamoa copper mine due to unstable power supply, but still expects an annual increase of 8% to 10% in copper production during the period. Zijin recently announced the acquisition of Akyem gold mine, which may bring a 7% increase in gold production and a 2% increase in profits next year. The bank maintains a buy rating and a target price of HKD 21.5 for H-shares.