By Sherry Qin
The gold-mining arm of China's biggest miner is readying a public offering that could value it at about $40 billion at the top end of some estimates.
Zijin Gold International, comprised of the overseas gold assets of Chinese state-backed Zijin Mining Group, is planning to start trading on the Hong Kong exchange after spinning off from its parent.
That comes against a backdrop of record-high gold prices, buoyed by demand for safe-haven assets amid market volatility, and by central bank buying. Investor appetite for Hong Kong offerings has been robust too, heating up the city's IPO market and making it the No. 1 destination for listings so far this year.
Zijin Gold has now passed the listing hearing, according to an exchange filing late Sunday. The timeline, offering size and pricing range have not been finalized.
Dual-listed Zijin Mining, which trades in both China and Hong Kong, had previously said that the aim of the spinoff is to build a leading international gold company, and boost its own valuation.
A report by HSBC analysts in May had estimated that Zijin Gold's market capitalization could be as high as US$20 billion. Earlier this month, Douglas Research Advisory, which publishes on Smartkarma gave a valuation estimate of over US$40 billion, coming after a continued surge in prices of precious metal.
The company plans to use the net proceeds to pay for the acquisition of the Raygorodok gold mine in Kazakhstan, and for upgrading and construction projects at existing mines.
Zijin Gold made US$2.99 billion in revenue last year, up 32%, while its net profit more than doubled to US$481.4 million.
Analysts reckon that was primarily due to higher average selling prices, as investors snapped up gold amid heightened geopolitical tensions and a weakening U.S. dollar.
Spot gold prices have rallied 39% so far this year to US$3,641.54 per troy ounce.
Holding interests in eight gold mines across Central Asia, South America and other areas, Zijin Gold produced 1.3 million ounces of the yellow metal in 2024 and has the ninth-largest gold reserves in the world.
Citi analysts think the upcoming IPO could spur a re-evaluation of Zijin Mining's shares.
"Post completion, we expect it to pave the way for future M&A in Zijin's gold business in the coming 2-3 years," they wrote in report earlier this year.
The miner's Hong Kong-listed shares were last 0.2% higher at HK$29.72 while its mainland shares were up 0.8%.
Zijin Gold has appointed Morgan Stanley and Citic Securities as joint sponsors for the initial public offering, a draft prospectus showed.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
September 15, 2025 01:47 ET (05:47 GMT)
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