The 2016 annual results of the Company was 38.7% and 13.0% lowerthan market consensus and our estimation, respectively. Total revenueof the Company increased by 8.90% yoy to RMB 202.31 billion, net profitattributable to shareholders increased by 23.59% yoy to RMB 0.79 billion.
　　We expect copper prices to remain flat in 2017, mainly due to weakconsumption demand. We expect gold prices to remain under pressurein 2017 as the interest rate hike pace of the U.S. Federal Reserveaccelerates. We expect copper prices to trade betweenUS$ 4,500/t-US$ 6,000/t in 2017, and the average price of copper may bearound US$ 5,000/t-US$ 5,300/t.
　　In 2017, the Company plans to produce 1.36 million tons of refinedcopper, 0.21 million tons of mined copper and 25 tons of gold. We expectthe mining output of the Company to generally remain flat in 2017.
　　Revise up TP to HK$ 11.49, but maintain “Reduce”。