S&P revises Zijin view to positive

S&P said it changed Zijin Mining Group. Co. Ltd.’s outlook to positive from stable and affirmed the BB+ ratings on Zijin and its senior unsecured notes.

“Zijin Mining is on track to be a top 10 gold and copper producer globally by 2022. The company plans to increase production volume to 69 tons of gold and 800,000 tons of copper in 2022, from 40.5 tons and 453,447 tons in 2020, an increase of 70%-80%. Volume additions will come from the ramp-up of production capacity at existing and newly acquired mines,” S&P said in a press release.

The agency said it forecasts Zijin Mining's debt-to-EBITDA ratio falling under 3x in the next 24 months, supported by strong gold and copper prices and rising volume.

The outlook indicates a possible upgrade if Zijin Mining smoothly executes key projects to significantly increase its gold and copper production in the next 24 months, while keeping its debt-to-EBITDA ratio below 3x with adequate liquidity, S&P said.

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