2022 interim results of the Company was 21.4% and 12.7% higher than market consensus and our estimation, respectively. Total revenue of Zijin Mining (the "Company") increased 20.6% yoy to RMB132.46 billion, and net profit attributable to shareholders surged 90.0% yoy to RMB12.63 billion.
Total mining output of the Company in 1H2022 was generally in line with our estimation. Zijin Mining produced 0.41 million tons of mined copper, 27 tons of mined gold and 0.22 million tons of mined zinc in 1H2022, which represented 47.8%, 45.0% and 45.8%, respectively, of its annual plan. The construction of expansion projects of the Company was smooth in 1H2022, which will strongly support mining output growth in 2H2022. We expect the Company to fulfill its annual plan.
Implementation of lithium and other renewable energy businesses was successful. Zijin Mining formed a "two lake, one mine" pattern in lithium and other renewable energy business. The overall lithium carbonate equivalent resources of the Company exceeded 10 million tons. The long-term lithium carbonate equivalent production capacity is over 150,000 tons per year, laying the foundation of the Company to become an important lithium producer in the world. The project of the Company in Argentina from its lithium business is expected to commence production by the end of 2023.
Maintain "Buy" investment rating for the Company, with TP of HK$15.70. We expect net profit of the Company to maintain fast growth in 2022 due to high metal prices and more mined copper output. We believe that the fast growth prospect of the Company has not been fully reflected; maintain "Buy" rating.