Production surged by 44%! Zijin Gold International's mined gold production reached 27.3 tons in the first half of the year.

Zijin Gold International (02259.HK) disclosed its interim performance announcement for the six months ended June 30, 2026, on the Hong Kong Stock Exchange on August 14. Leveraging the cycle of high international gold prices, the release of production capacity from overseas acquired mines, and refined global mine operations, the Group achieved significant growth across production, revenue, profit, and cash flow. Its financial structure continues to optimize, and it declared its first interim dividend since listing, honoring its commitment to shareholder returns.

I. Core Operating Data Surges Across the Board

During the reporting period, persistent global geopolitical uncertainty continued to drive gold demand for safe-haven assets. International gold prices fluctuated violently in the first half of the year, with the average realized gold price reaching $4,643 per ounce, a year-on-year surge of 51%, bringing strong profit elasticity to overseas gold mining companies. Combined with the full integration and production commencement of the Ghana Akim Gold Mine and Kazakhstan Regold Gold Mine acquired in 2025, the Group's operating indicators achieved leapfrog growth:

Mined Gold Production: Total output of 27.3 tons, compared to 19 tons in the same period of 2025, a year-on-year increase of 44%; of this, holding mines produced 26 tons, a year-on-year increase of 37%, with newly acquired mines becoming the core source of incremental volume. Gold sales volume was 26.1 tons, adhering to the operational strategy of producing and selling as much as possible.

Revenue and Profit: Total revenue for the first half was $3.987 billion, doubling year-on-year by 100%; profit attributable to owners of the parent company was $1.451 billion, compared to only $520 million in the same period of 2025, a massive year-on-year increase of 179%; basic earnings per share was $0.54, up 135% year-on-year.

Cash Flow and Assets and Liabilities: Net cash flow from operating activities was $1.798 billion, a year-on-year surge of 331%; cash and cash equivalents at the end of the period were $3.869 billion. Interest-bearing debt continued to be reduced, and the debt-to-asset ratio fell from 41% at the end of last year to 36%. The return on equity for the half-year increased to 17.6%, significantly improving asset profitability efficiency.

Cost Control: The overall All-In Sustaining Cost (AISC) was $1,678 per ounce, a slight year-on-year increase of 7%, mainly due to higher royalties driven by rising gold prices. Excluding this factor, unit cost per ounce decreased year-on-year. The Group hedged external cost pressures such as inflation, rainfall, and logistics through technical modifications, global centralized procurement, and the replacement of fuel with photovoltaic energy storage.

II. Simultaneous Production Increase at Multiple Overseas Mines, M&A Assets Contribute Core Increment

The Group has a global layout of eight major gold production bases in Colombia, Ghana, Australia, Suriname, Kyrgyzstan, Tajikistan, Kazakhstan, and Guyana. Mature mines are achieving stable production and increased efficiency, while production capacity from newly acquired projects is being intensively released:

Mature Producing Mines: The Buriticá Gold Mine in Colombia, Rosebel Gold Mine in Suriname, Aurora Gold Mine in Guyana, and Left Bank Gold Mine in Kyrgyzstan all achieved year-on-year production increases. Among them, the Rosebel Gold Mine demonstrated outstanding cost control results relying on photovoltaic power stations and optimization of the beneficiation process. The low-grade resource comprehensive utilization project at Norton Gold Fields in Australia was completed and put into operation in June, further improving the recovery rate of low-grade ore.

Newly Acquired Mines: The Ghana Akim Gold Mine produced 4 tons of gold in the first half, a year-on-year increase of 233%; the Kazakhstan Regold Gold Mine contributed 3.3 tons of mined gold. These two overseas acquisition assets have officially become the "dual engines" for the Group's production growth.

Continuous Thickening of Resource Reserves: A total of 84,300 meters of geological drilling was completed in the first half, adding 34.72 tons of gold metal. The three major mines of Buriticá, Norton Gold Fields, and Rosebel contributed the main new resources, providing resource guarantees for medium-to-long-term stable production and expansion.

III. Major Dividend Implemented, First Interim Dividend Declared Since Listing

The Board of Directors formally declared the first interim dividend since listing, at HK$0.15 per ordinary share, fully demonstrating management's ample confidence in the company's cash flow and long-term development prospects.

Key Timetable for Dividend:

Record Date: August 31, 2026 (share transfer suspended on that day);

Closing of Transfer Books: August 28, 2026, at 16:30;

Dividend Payment Date: Around September 24, 2026.

IV. Expansion Projects Under Construction Steadily Advancing, Full-Year Production Guidance Unchanged

The Group is orderly implementing several mining and beneficiation expansion projects at the ten-million-ton level, covering core mining areas in Suriname, Ghana, Kazakhstan, and Tajikistan. Most projects are planned to concentrate production in 2028, continuously opening up space for medium-to-long-term production growth:

Kazakhstan Regold Gold Mine: 10 million tons/year mining and beneficiation technical modification and expansion, with a total investment of $910 million. After completion, ore processing capacity will increase from 6 million tons/year to 16 million tons/year;

Ghana Akim Gold Mine and Suriname Rosebel Gold Mine are simultaneously advancing the expansion of ten-million-ton-level concentrators and the upgrading of tailings ponds;

Tajikistan Jiluo-Talo Gold Mine is constructing a new low-grade concentrator, to be completed in the first quarter of 2028, enhancing the comprehensive recovery capacity of associated gold, silver, and copper.

The company confirmed that the full-year mined gold production guidance for 2026 remains unchanged. Technical modifications and expansion projects at major mines are proceeding as planned, and production capacity growth is sustainable.

V. Industry Outlook and Development Strategy

Management analysis indicates that short-term gold prices will remain highly volatile influenced by Federal Reserve policies, the US dollar trend, and geopolitical conflicts. In the medium and long term, continuous gold purchases by global central banks, sovereign debt pressure, and the trend of diversifying foreign exchange reserves will continue to support the allocation value of gold, and the scarcity of high-quality, low-cost overseas gold mines will continue to be highlighted.

Next, the Group will continue to implement four core strategies:

Stabilize Production: Continuously advance refined global mine operations, intelligent transformation, and clean energy substitution to reduce unit production costs;

Increase Resources: Intensify deep exploration in global mining areas and drilling in surrounding target areas to continuously expand gold resource reserves;

Expand Capacity: Accelerate the implementation of global projects under construction and expansion to steadily release new production capacity;

Expand M&A: Prudently screen high-quality gold assets globally to continuously improve the global resource layout.

In addition, after the reporting period, the company completed a strategic investment in Allied Gold Corporation, spending approximately $295 million to subscribe for a 9.2% equity interest, further broadening the overseas gold resource map.

VI. Deepening of ESG Sustainable Operations

The Group restructured the Sustainable Development and Risk Management Committee to unify the ESG data statistical system for global mines. All mining areas achieved zero major penalties for safe production and no major environmental accidents. The Group is promoting ecological restoration of tailings, photovoltaic energy storage, and the replacement of fuel equipment with electric mining trucks. It is improving local community communication and resettlement mechanisms, increasing investment in local employment, medical care, and infrastructure, and balancing mine development with local development.