What’s new: Zijin Mining Group Co. Ltd. (601899.SH), China’s largest gold and copper producer, saw its market value surpass 470 billion yuan ($65 billion) driven by the rocketing price of gold and copper, achieving a new historical high and entering the top 20 of domestically listed firms.
Zijin’s Shanghai traded shares closed 5.76% higher at 17.99 yuan Wednesday, putting the company’s market cap at 473.6 billion yuan. The stock has surged more than 21% over the past 30 trading days.
Zijin’s gold production expanded 20% year-on-year to 67.7 tons in 2023, nearly a quarter of China’s total gold production. Its copper production increased 11% to 1.01 million tons, accounting for about 60% of the country’s total output.
The context: Shares of gold and copper miners have been lifted since March as prices of the two precious minerals continue to climb.
International gold prices have hit several new highs since March, with significant increases reported in both spot and futures prices. Copper prices have also seen a notable rise.
On Wednesday, the London spot gold price was about $2,353 per troy ounce while gold futures in the New York Mercantile Exchange reached $2,377 per troy ounce. The main Shanghai gold futures contract closed at 558.78 yuan/gram, all up more than 15% since the end of February.
Major copper contracts have increased more than 11.5% since the end of February.
Industry experts expect the prices of gold and copper to remain high due to strong demand.
Contact reporter Han Wei (weihan@caixin.com)
