Zijin Mining released its unaudited 2011 results

Both revenue and net profit grew significantly thanks to high gold and copper prices. T he revenue of the company is about 20% higher than market consensus and our estimation, while the net profit attributable to shareholders is lower than market consensus and our estimation, about 4% and 11% respectively.

The significant growth of revenue might attribute to the output growth of smelted gold whose gross margin is much lower than that of mining, while the out put of mind gold and copper is lower than market expections. We will adjust the output of main products of the company with the latest information from the company soon.

Our investment rating for Zijin Mining is “Buy”. We are still optimistic about Zijin Mini ng’s results as gold and copper prices are still kept in high levels, which lift the profitability of the company. We will revise profit estimations and TP of the company in the coming company report.

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