The 2020 annual results of the Company were generally in line with market consensus and our estimation. Total revenue of the Company increased 26.0% yoy to RMB171.50 billion, and net profit attributable to shareholders increased 51.9% yoy to RMB6.51 billion.
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$1,800/oz-US$2,200/oz in 2021. We expect the average annual copper price to trade between US$7,500/t-US$8,000/t and the average annual zinc price to trade between US$2,500/t -US$2,700/t in 2021.
The Company plans to produce 53-56 tons of mined gold, 0.54-0.58 million tons of mined copper and 0.45-0.48 tons of mined zinc in 2021.
Revise up the TP to HK$10,20, and upgrade to "Neutral”。