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Zijin Mining Shares Fall After Q3 Earnings Miss Analyst Forecasts
Shares of Zijin Mining Group (2899.HK) fell nearly 6% to HK$27.74 on Monday after the company reported third-quarter earnings that missed analyst expectations. The decline was compounded by a sharp drop in spot gold prices, which added broad pressure to the mining sector.
Earnings Disappoint Despite Growth
Zijin Mining announced a third-quarter net profit of RMB 18.4 billion, a significant 26% increase compared to the same period last year. However, the figure came in below market forecasts and represented an approximately 4% decline from the previous quarter.
The company attributed the miss to lower-than-anticipated production volumes for its key commodities, including gold, copper, and lithium. Despite the quarterly shortfall, the company's performance for the first nine months of the year remains largely on track, with recurring net profit of RMB 56.8 billion accounting for about 70-71% of the full-year consensus estimate.
AdSector Headwinds and Analyst View
Adding to the company-specific news, the stock was also weighed down by external market forces. Spot gold prices fell sharply on Monday, briefly dropping below the $4,000-per-ounce level and dragging down other Hong Kong-listed gold producers. This sector-wide weakness occurred even as the broader Hang Seng index advanced 0.6%.
In a note to clients, analysts at Citi maintained their "Buy" rating on Zijin Mining. The bank acknowledged that the results missed its forecasts but highlighted a significant milestone: for the first time, gross profit contribution from copper surpassed that of gold during the quarter.
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