To The Moon

🌟🌟🌟Shares of China's Zijin Gold International $ZIJIN GOLD INTL(02259)$ rose as much as 66% in its Hong Kong trading debut on Tuesday after it raised USD 3.2 billion in its IPO - the largest deal of its kind globally in 2025.

What Does Zijin Gold Do?

Zijin Gold is a unit of $ZIJIN MINING(02899)$  that operates all of the group's gold mines outside China.    It operates mines and projects in Tajikistan, Kyrgyzstan, Australia, Guyana, Colombia, Suriname, Ghana and Papua New Guinea. 

Zijin Gold has grown its business through global acquisition and the expansion of its operations. 

Relationship with Parent Company :

Zijin Gold is the overseas gold mining arm of its parent company Zijin Mining.

Zijin Mining is a diversified mining group focused on Gold, Copper, Lithium and Zinc with operations worldwide.   Zijin Mining is the largest mined gold producer in China.   It also owns associated businesses in Gold refining, fabrication and trading. 

Is Zijin Gold A Good Buy? 

Zijin Gold isn't just a stock.  It is a global gold powerhouse backed by Zijin Mining with operations spanning Central Asia, South America, Oceania and Africa.  

Zijin Gold's IPO was 241 times oversubscribed on the retail side and 20 times oversubscribed on the institutional side.  Investors like GIC, BlackRock and Hillhouse piled in.  That is not hype, it is heavyweight belief. 

With Spot Gold hitting record highs above USD 3,800 and whispers of it breaching USD 4,000, Zijin Gold rides the wave of Central banks accumulation, inflation hedging and geopolitical uncertainty.  This is not just a commodity, it is a safe haven refuge. 

The IPO funds are earmarked for acquiring a Kazakhstan mine and upgrading existing assets.  This is expansion with intent, not dilution for survival. 

Zijin Gold's listing is part of a broader revival in Hong Kong's capital markets, signaling confidence in Asia's resource future. 

Analysts Sentiment : Bullish and Strategic 

Jefferies described the Zijin Gold IPO as a landmark move that fuels growth potential with limited dilution.  It sees upside from rising Gold prices and expect higher output in 2026 as new mines in Ghana and Kazakhstan come online. 

Valuation wise, Zijin Gold debuted at HKD 71.59 per share and surged 65% to HKD 118, giving it a market cap of nearly USD 40 billion.  That is near the top of its expected valuation range of USD 30 billion to USD 40 billion.  However analysts said that this reflects asset quality, not froth. 

Revenue and Profit Growth : In 2024, Zijin Gold posted USD 2.99 billion in revenue - up 32% and USD 481 million in net profit, more than doubling year on year.  That is not hype.  It is operational conviction. 

Strategic Spin Off : Analysts like Oliver Blake see the IPO as a way to unlock hidden value and isolate high margin international assets from domestic side.  It is a clean slate for global expansion. 

Is Zijin Gold Overpriced? 

Not in the eyes of those who understand Gold's emotional and strategic weight. 

Gold prices are soaring with forecasts from JPMorgan suggesting USD 6,000/oz by 2026.  Zijin Gold's reserves - 15 million ounces in South America alone, could be worth USD 67.5 billion at those levels. 

Zijin Gold's IPO was 241 times oversubscribed on the retail side.  That is a huge demand. 

Analysts are not calling it overpriced.  They are calling it timely,  strategic and positioned for greater upside. 

Concluding Thoughts 

I believe that Zijin Gold is a good buy with prices of gold soaring.  It is the kind of stock that is worth its weight in gold to buy and hold long term.   Zijin Gold is more than just a miner.  It is the kind of stock that speaks to investors who believe in legacy over leverage and in the power of compounding over a long term horizon. 

@Daily_Discussion  @Tiger_comments  @TigerStars  @CaptainTiger  @TigerClub  @Tiger_SG