Zijin +0.9%; UOBKH Keeps On Buy
Zijin Mining (2899.HK) +0.9% at HK$13.24, buoyed by news it's in preliminary agreement to buy 20% stake in one of Lepanto's (LC.PH) mining projects for US$70 million.
"News is positive with its investment in overseas project, but this is not too surprising as Zijin has always been looking for investment opportunities overseas," says Zhang Xi at UOB KayHian. Rather, gold price move more key to miner. Due to surging gold price,
Zhang has raised target price of Zijin to HK$18 from HK$12,
after raising gold ASP to US$800/oz in 2008 and US$929/oz in 2009.
Ups Zijin net profit forecast by 23% and 30% in FY08 and FY09, respectively. Keeps on Buy call.
Zijin Mining (2899.HK) +0.9% at HK$13.24, buoyed by news it's in preliminary agreement to buy 20% stake in one of Lepanto's (LC.PH) mining projects for US$70 million.
"News is positive with its investment in overseas project, but this is not too surprising as Zijin has always been looking for investment opportunities overseas," says Zhang Xi at UOB KayHian. Rather, gold price move more key to miner. Due to surging gold price,
Zhang has raised target price of Zijin to HK$18 from HK$12,
after raising gold ASP to US$800/oz in 2008 and US$929/oz in 2009.
Ups Zijin net profit forecast by 23% and 30% in FY08 and FY09, respectively. Keeps on Buy call.