The 2021 interim results of the Company were higher than market consensus and our estimation. Total revenue of the Company increased 61.3% yoy to US$ 577.0 millon, and net profit attributable to shareholders' surged 1,592.9% yoy to US$157.7 millon.
Revise up copper price assumptions and maintain gold price assumptions unchanged. We expect gold price to benefit from loose monetary policy and investor demand for safe-haven assets; we expect the annual average gold price to be around US$1,850/oz in 2021. We expect the annual average copper price to be around US$9,000/t in 2021.
Revise up mined copper output assumptions, and maintain mined goldoutput assumptions unchanged. In 2021, the Company plans to produce235,000 oz of mined gold and about 80,000 tons of mined copper. We believe the Company is able to produce more mined copper in the 2nd half of 2021 and revise up mined copper output assumptions to 81,000-82,000 tons.
Revise up the TP to HK$26.35 and maintain "Accumulate".