Zijin gold unit says it tops the world in output growth before US$3 billion Hong Kong IPO
Zijin Gold International said it was the world's fastest-growing gold producer, as the offshore unit of China's largest miner is poised to launch by Friday an initial public offering (IPO) in Hong Kong that could be the city's second-biggest sale this year.
Average annual gold output grew 21.4 per cent every year between 2022 and 2024, making it the world's 11th biggest producer last year, the unit of Zijin Mining Group said in its IPO prospectus. The Hong Kong-based company produced 1.5 million ounces of gold last year, with 26.1 million ounces of reserves, according to data compiled by market researcher Frost & Sullivan.
Zijin Gold International, established in 2007, owns Zijin Mining's overseas gold mines, including projects in Tajikistan, Kyrgyzstan, Australia, Guyana, Colombia, Suriname, Ghana and Papua New Guinea.
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"We are one of the fastest-growing companies in the global gold mining industry," Zijin Gold said in its prospectus. "Starting from the acquisition of the Tajikistan Jilau/Taror gold mines in 2007, we have expanded our business through global acquisitions, operational enhancement and production expansion of several large gold mines."
An undated aerial view of the Raygorodok gold mine in Kazakhstan. Photo: Handout alt=An undated aerial view of the Raygorodok gold mine in Kazakhstan. Photo: Handout>
Zijin Gold may start "book-building" for its Hong Kong IPO this Friday to gauge institutional investors' interest, aiming to raise over US$3 billion, which would make the float the city's second largest so far this year, according to a September 10 Reuters report. The fundraising would value Zijin Gold at US$30 billion. Zijin Mining did not immediately respond to an emailed request for comment.
There is likely to be strong interest among investors for Zijin Gold's coming IPO, said Kenny Tang Sing-hing, the chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators.
Gold bars. Photo: Shutterstock alt=Gold bars. Photo: Shutterstock>
"Many investors are keen to increase exposure to gold as part of [their] asset diversification amid expectations of rounds of US interest rate cuts and risks of heightened inflation combined with weak economic growth," Tang said. "Investing in gold miners is one way to achieve this."
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