The 2017 interim results of the Company were lower than marketconsensus and our estimation. Total revenue of the Company increased8.96% yoy to RMB 98.29 billion, net profit attributable to shareholdersincreased 75.38% yoy to RMB 0.83 billion.
　　Revise up copper price assumptions, but maintain gold priceassumptions unchanged. We expect gold price to remain under pressure in2017 as the U.S. interest rate hike pace accelerates. We expect copperprices to rebound in the second half of 2017 due to improved demandprospects. We expect the average annual gold price to be around US$1,200/oz and the average copper price may be around US$ 5,400/t-US$5,600/t.
　　Maintain mining output assumptions unchanged. In 2017, the Companyplans to produce 1.36 million tons of refined copper, 0.21 million tons ofmined copper and 25 tons of gold. We expect the Company to fulfill its plan.
　　Revise up TP to HK$ 13.32 and upgrade to “Neutral”.