Zijin Gold International Reports 70% Revenue Increase

Zijin Gold International, a subsidiary of Zijin Mining, reported a substantial 70% year-on-year increase in revenue, reaching US$5.81 billion for the nine months through September 30, 2026. This growth reflects increased gold production – up approximately 28% to 41 tonnes – and refined operational management, as highlighted in a company announcement. Profit attributable to owners of the parent followed suit, surging 123% to US$2.01 billion over the same period.

The strong financial performance extends to cash flow, with net cash flows from operating activities increasing by 157% to US$2.78 billion. This indicates improved efficiency in converting revenue into cash, supporting the company’s investment in ongoing mine upgrades and expansion projects. Total assets also grew, increasing 10% to US$13.86 billion as of September 30, 2026, while equity attributable to owners of the parent rose by 13% to US$9.43 billion. The company also demonstrated some improvement in its capital structure, with the debt-to-asset ratio decreasing by 1.7 percentage points to 27.5%.

The all-in sustaining cost (AISC) for gold production increased by 5% to US$1,649 per ounce, a change primarily attributed to higher royalties linked to increased gold prices and rising costs of raw materials. Despite this increase, Zijin maintains a competitive position within the global gold industry, with its AISC remaining relatively low. The company proactively invested in upgrades for existing mines, including the Paddington Mill and Aurora mine, as well as exploration at Jilau and Taror, and equipment upgrades at Raygorodok – initiatives expected to boost production capacity in the coming quarters.

The reported results align with current market conditions favoring precious metals, driven by receding expectations of aggressive interest rate hikes by the US Federal Reserve. While strong topline growth is apparent, the rising costs of raw materials, as noted in the filing, echo broader inflationary pressures impacting industrial sectors, including those in India, which could affect Zijin’s supply chains. The company’s strategic focus on operational efficiency and cost control will be critical to sustaining profitability as it continues to scale its operations and integrate newly acquired mines.