Buy, buy, buy! As the largest gold company in China, listed in both mainland China and Hong Kong. Zijin Mining [ 2.53% Funds Research Report ] ( 601899， SH ；02899， HK ) Recently, several M&A announcements have been continuously released, including the acquisition of Barrick Gold ( Barrick Gold ) In Bolgela, Papua New Guinea Porgera ) nearly half of the shares in the gold mine, as well as Ivanhoe Mines ( Ivanhoe Mines ) In Kamoa, Democratic Republic of the Congo Kamoa ) A similar proportion of shares in the copper mining project.

The latest news indicates that Zijin Mining has listed on the Australian Securities Exchange. PhoenixGold Limited Submitted a takeover bid, made an offer. 0.10 Australian dollar / Stock. According to Australia Stock exchange ( ASX ) The website’s latest announcement last Thursday showed that Zijin Mining has obtained approval from the Australian Securities and Investments Commission ( ASIC Approval of the acquisition of ).

Analysts believe that, at a time when global gold prices are sluggish, large-scale mergers and acquisitions represent a business opportunity—but... U.S. dollar Appreciation and expectations of U.S. interest rate hikes will be its biggest risks.

Continuously acquiring Australian minerals

In its announcement, Zijin Mining also stated that the acquisition has been approved by the Australian Foreign Investment Review Board ( FIRB ) approval.

Zijin Mining currently holds PhoenixGold Limited Shares 17.9% , this year 6 The company announced its intention to acquire. PhoenixGold Remaining equity, price to be quoted. 4700 10,000 Australian dollars (approximately) 3655 Ten thousand US dollars).

It is worth noting that, PhoenixGold This is not Zijin Mining’s first acquisition deal in Australia this year.

As the world’s second-largest gold company, Zijin Mining had already made strategic moves several years ago by taking a stake in the renowned gold company Norton Gold Fields. Earlier this year, Zijin Mining proposed a plan to acquire Norton Gold Fields in its entirety.

Norton Goldfields primarily conducts gold exploration and production in the Western Australia region and already owns several mature projects, including: Paddington Mine, Morgan Mountain Tailings Utilization Project, Norton Gold Fields Gold Mine Project, and Many Peaks Copper mine exploration projects, etc. 2012 Year 8 In the month, Zijin Mining, through its wholly-owned subsidiary Jinyu, ... ( Hong Kong ) International Mining Co., Ltd. has successfully acquired a majority stake in Norton Gold Fields.

This time to PhoenixGold This acquisition is the latest in a series of mining acquisitions initiated by Zijin Mining since it took control of Norton Gold Fields. Previously, Zijin had already completed acquisitions of several primary gold exploration companies in Western Australia. Kalgoorlie Mining companies, Bulabuling Acquisition of Jin Ye and strategic equity holding Phoenix Jinye Co., Ltd.

Although gold market sentiment remains exceptionally subdued in most regions around the world, some analysts believe that Australian gold mining companies appear to have been unaffected. The Australian dollar has recently shown a generally weak performance, which in fact has boosted the value of gold priced in Australian dollars. Meanwhile, the broader global trend of falling prices for bulk commodities has heightened purchasing appetite among certain groups, enabling Australia’s gold production to actually increase.

An analyst from Business Society’s gold division told a reporter from the Daily Economic News that, as resource currencies worldwide are depreciating, merger and acquisition deals will become more frequent. Moreover, Australian producers will benefit from the depreciation of the Australian dollar.

Zijin Mining Executive Director and Deputy President In a previous interview, Fang Qixue stated that Zijin had taken over Norton Corporation. 3 More than a year later, Norton’s gold production increased by approximately. 30% Costs have decreased. 20% The above.

The above data undoubtedly provides the most direct rationale for Zijin Mining’s acquisition of Australian gold mines.

U.S. interest rate hikes will cause gold prices to fall.

Data shows that in the first six months of this year, the value of acquisition deals proposed or completed by gold producers reached 96 hundreds of millions of dollars, an increase compared to the previous six months. 7% The reason is that after the sharp drop in gold prices, asset prices followed suit and declined, leading to an increase in merger and acquisition activities. Gold prices 7 Moon 24 Falling to per ounce daily 1077.40 The U.S. dollar has hit its lowest level in five years.

According to gold analysts at Business Society, China is the world’s largest gold producer. However, China lacks large-scale individual gold mines and is thus unable to establish major production centers. This means that companies—including Zijin Mining—must search for gold mines overseas if they want to expand their businesses. If Zijin Mining aspires to become a globally operating gold mining company, it will need to manage gold mines around the world.

In addition to the frequent acquisitions of Australian gold mines, this year... 5 In the month, Zijin Mining also invested... 7.1 Hundreds of millions of dollars in equity stakes in gold mines in Papua New Guinea and the Democratic Republic of the Congo.

According to statistics, 2014 The acquisition deal of Zijin Mining reached... 10 hundred million dollars.

Explaining to the media why Zijin Mining has boldly embarked on developing new mines despite the recent sustained decline in global gold prices, Chairman Chen Jinghe said that from a medium- and long-term perspective, the gold market still boasts favorable factors—for instance, currencies in many countries are depreciating, and gold remains an important store of value.

Public data shows that Zijin Mining currently is in... 12 Invests in and holds equity stakes in countries and regions, primarily owning 8 A mineral resource project, whose profits account for approximately... within the group. 10% As of this year 5 As of the month, Zijin Mining holds gold reserves based on its equity interests. 1506 ton, copper 2600 Ten thousand tons, lead and zinc 1087 Ten thousand tons, tungsten and molybdenum 85 Ten thousand tons, iron 2.3 With reserves of gold and metal resources ranking among the highest in China, it is the country’s leading enterprise in this field.

A gold analyst from Business Society told a reporter from the Daily Economic News that, outwardly, overseas mergers and acquisitions seem to be beneficial for both parties. “ Win-win ” This move, however, carries the greatest risk: if the U.S. dollar strengthens and the Federal Reserve raises interest rates, and if gold demand fails to show any significant improvement in the second half of the year, gold prices will continue to decline. Under such circumstances, gold miners must reduce their extraction costs in order to avoid operating at a loss.