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Zijin Mining (601899): Production is released as scheduled and rising costs affect performance

Zijin Mining (601899): Production is released as scheduled and rising costs affect performance
The company’s 19Q1 performance was slightly lower than expected, and the new company consolidated the cost of zinc mining, which affected the performance.It is expected that the company’s costs will continue to improve in the future, and its production will be released, and its performance will grow rapidly. Investment Highlights: The quarterly results are slightly lower than expected, and we maintain an Overweight rating.2019Q1 revenue was 290.4.2 billion, +27 per year.02%, 18Q4 -2.61%; net profit attributable to mother 8.740,000 yuan, at least -19.43%, 18Q4 +17.95%; deduct non-attributed net profit 7.45 ‰, at least -29.14%, 18Q4 turn positive.Considering that the company’s future cost factors are likely to continue to improve, the company’s 2019/2020/2021 EPS forecast is maintained at 0.23/0.25/0.The 26 yuan reference multi-metal company in the comparable industry gives an estimate of 20 times EPS in 2020 and maintains a target price of 4.9 yuan / share, 54% of the current space, maintaining the overweight level. The sales of copper and zinc increased rapidly, and the cost of ore and zinc rose.In the first quarter, the sales of mineral gold / mineral silver / copper concentrate / mineral copper / mine zinc / iron concentrate were 9 respectively.16 tons / 52.03 tons / 6.91 constant / 0.95 initial / 9.In the 1980s / 94 period, copper / mineral zinc became the main force for sales growth, each time +34.59% / + 25.55%.Incremental output of major grain-mining copper projects and the consolidation of Bisha; from a cost perspective, the company’s unit costs for gold / mineral silver / mineral copper / mineral zinc in 19Q1 were 172.26 yuan per gram / 1.51 yuan per gram / 16356 yuan per ton / 5373.89 yuan per ton, compared to -6.64% /-14.2% /-15.7% / + 15.64%, of which the unit cost of mine zinc has been improved due to the higher cost of consolidated production. It is expected that the company will reduce unit cost through mine management in the later period.Due to the consolidation of new enterprises, the company’s Q4 single-quarter management expenses rose sharply44.21% to 8.9.6 billion; meanwhile, the decrease in financial expenses due to foreign exchange losses decreased by 11.48% to 5.500 million. It is expected that the company’s cost factors will continue to improve.The 厦门夜网 company’s main advantage lies in mine development and governance. We expect that the cost factors affecting the company’s performance in 19Q1 will improve sequentially.At the same time, the company’s overseas business has developed smoothly. After CITIC Metal invested in Ivanhoe’s equity, it is expected that Camoa’s production will continue to accelerate. Nevsun and BTR projects have successfully completed mergers and acquisitions and consolidation.It is estimated that the company’s mining copper production capacity for the three years from 2019 to 2021 will be 35/42/55 tons, and the sales of mining gold / mineral copper / mineral zinc in 2014 will be 40 tons / 35 tons / 38 respectively, which will reduce costs and improve performance.freed. Catalysts: Kamoa’s production starts accelerating, metal prices rise. Risk reminder: the macro economy is gradually deteriorating, and the company’s project progress is less than expected