Zijin Mining Responds to Proposed Controlling Stake in Chifeng Gold: Aligns with Company's Resource Priority Development Strategy

Securities Daily Reporter Li Ting

On the morning of March 23, Zijin Mining Group Co., Ltd. (hereinafter referred to as “Zijin Mining”) released a takeover announcement that attracted market attention. It was disclosed that Zijin Mining plans to acquire control of Chifeng Jilong Gold Mining Co., Ltd. (hereinafter referred to as “Chifeng Gold”) through an agreement to acquire A-shares and subscribe to a targeted issuance of H-shares.

That morning, a reporter from Securities Daily learned from Zijin Mining’s 2025 performance briefing that, in response to short-term fluctuations in gold prices and the core mineral cycle, Zijin Mining is steadily expanding its gold business through external acquisitions, while continuing to deepen its layout in new energy minerals such as lithium, firmly anchoring its long-term industry value.

Regarding this acquisition, Zijin Mining President Lin Hongfu stated that with increasing global geopolitical uncertainties and a restructuring cycle of the fiat currency system, the long-term allocation value of gold has solid support. This acquisition fully aligns with the company’s resource-prioritized development strategy.

According to Zijin Mining’s announcement, the company intends to acquire control of Chifeng Gold through an agreement to transfer A-shares and subscribe to a targeted issuance of H-shares. The transaction will be implemented by the company’s wholly owned subsidiary Zijin Gold (Group) Co., Ltd., which will execute a package plan: at a price of 41.36 yuan per share, it will agree to transfer 242 million A-shares held by Chifeng Gold’s controlling shareholder Li Jinyang and his concerted parties Zhejiang Hanfeng, totaling approximately 10.006 billion yuan; simultaneously, at a price of 30.19 HKD per share, it will subscribe to 311 million H-shares issued by Chifeng Gold, with a subscription amount of about 9.386 billion HKD (approximately 8.252 billion RMB). The total transaction value is approximately 18.258 billion RMB.

The announcement shows that before this transaction, the company’s other wholly owned subsidiaries already held 19 million shares of Chifeng Gold; after the transaction, the total shareholding of the company’s wholly owned subsidiaries will increase to 572 million shares, accounting for 25.85% of Chifeng Gold’s total post-issuance share capital, officially gaining control and completing financial consolidation. This transaction does not constitute a related-party transaction or a major asset restructuring.

Lin Hongfu stated that the merger and acquisition are based on multiple considerations. First, gold is a key strategic mineral for Zijin Mining and aligns with the company’s strategic plan. Second, Chifeng Gold’s mines in Ghana, Laos, and China have good prospecting potential and the ability to further increase capacity, which are key areas of focus for the company. Meanwhile, short- to medium-term gold prices may fluctuate, but the logic of maintaining high or rising gold prices in the medium to long term remains unchanged.

Wandel Securities investment advisor Qu Fang analyzed for Securities Daily that gold is Zijin Mining’s core strategic mineral. The acquisition of Chifeng Gold is a crucial move to strengthen its gold business. The gold mines under Chifeng Gold are high-quality operating assets that can quickly contribute output and profits after acquisition. Zijin Mining’s layout is a proactive response to industry consolidation trends, but it also faces multiple market uncertainties. The long-term investment value still requires ongoing operational data to verify.

At the 2025 performance briefing, Zijin Mining’s plans for other business areas such as energy metals and shareholder dividends also drew significant attention.

Zou Laichang, executive director and chairman of the company, told Securities Daily that according to the company’s disclosed “Three-Year (2026–2028) Major Mineral Product Production Plan and 2035 Long-term Goals Outline,” the company aims to develop 270,000 to 320,000 tons of lithium carbonate equivalent capacity by 2028, striving to become one of the world’s core lithium producers.

Regarding shareholder returns and capital expenditure balance, Zou Laichang said, “The company’s cash dividend policy will focus on long-term sustainable development. Considering factors such as profitability, cash flow, and the company’s development stage, we will gradually increase the proportion of cash dividends and establish a sustainable, stable, and scientific investor return mechanism.”

Data shows that the company’s profit distribution plan for 2025 proposes to pay a cash dividend of 3.8 yuan per 10 shares (tax included), totaling 10.1 billion yuan. Combined with the interim dividend of 5.85 billion yuan already paid in 2025, the total dividend for 2025 will reach 15.95 billion yuan. Over the past five years, the company’s total cash dividends will amount to 43.14 billion yuan, accounting for nearly 61% of the total dividends since listing, with an average annual growth rate exceeding 41%.

Regarding industry development trends, Zijin Mining management believes that the medium- to long-term demand for gold is clearly supported. Meanwhile, the acceleration of industries such as new energy, aerospace, and artificial intelligence drives continuous growth in demand for minerals like lithium and rare metals, expanding space for diversified mineral industry layouts. The company states it will continue to focus on gold and copper as core minerals while simultaneously expanding into new energy-related minerals, with a strategic focus on resource scarcity and industry development trends.