Zijin Mining Group (OTCPK: ZIJMF), China's largest gold producer, is preparing to spin off its international gold-mining operations in Hong Kong through a public listing that could raise more than $3 billion. If successful, it would mark the biggest IPO raise since Contemporary Amperex Technology Ltd's $5.3 billion deal in May.
This move would set Zijin Gold International, an entity responsible for the group's overseas portfolio, into a standalone entity. With yellow metal prices striking fresh all-time highs above $3,500 an ounce, the investor appetite is expected to be healthy.
Zijin's output last year was 73 tons of gold, with around 60% coming from international operations in Central Asia, Africa, Oceania, and South America. The group is targeting to expand production above 100 tons by 2028, cementing its position as a top global player.
"Zijin needs a large pool of offshore money to invest and expand production in their assets," Li Xiaofeng, senior partner at Dentons, said per ChinaDaily. "Given their track record, they should be able to increase output quite quickly."
Zijin's flagship gold assets include Colombia's Buriticá mine, one of the world's largest high-grade underground deposits, which delivered more than 10 tons of gold last year. In Western Australia, Zijin wholly owns the Norton Gold Fields, producing 8.2 tons in 2024. In South America, its 95% stake in Suriname's Rosebel mine added another 7.4 tons to annual output.
The company has pursued acquisitions aggressively, most recently securing a $1.2 billion gold mine in Kazakhstan after buying Ghana's Akyem project from Newmont in 2023.
The timing of the IPO plan aligns with the market dynamics favoring the sector. Gold has been one of the best-performing assets of the year. Central-bank purchases, mounting geopolitical risks, and investor demand for diversification have driven the metal over 30% year-to-date.
Hong Kong, meanwhile, is enjoying a resurgence in listings, with IPO proceeds expected to more than double to above $26 billion this year per Bloomberg Intelligence. The Zijin listing would solidify this trend, but also give investors direct access to one of the world's fastest-growing gold portfolios, while providing the firm with the capital it needs to ride out the market momentum.
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