Zijin Mining Pumps $2.5B Into Chifeng Gold to Grab Controlling Stake

Zijin Mining is making a sizable splash in the gold sector, moving to boost its stake in Chifeng Gold (6693) by acquiring control for roughly $2.5 billion. This expansion comes through a blend of share acquisitions and private placements that significantly raise Zijin's holding to almost 26% of the company's enlarged capital.

The transaction details include Zijin's subsidiary purchasing 242 million A shares at 41.36 yuan each, positioned slightly above the market close prior to trading suspension. Meanwhile, it will subscribe to 311 million freshly issued H shares at a price of HK$30.19 per share. The combined deal value tallies to nearly 18.26 billion yuan, or $2.5 billion.

Looking at valuation, this purchase price projects a 2026 price-to-earnings multiple of about 11.6 times based on consensus earnings estimates, which positions the deal amid typical ranges for mining sector deals yet continues Zijin's aggressive growth pace.

Pre-deal, Zijin held a modest 19 million shares in Chifeng. This new deal transforms that position into a controlling stake, effectively giving Zijin operational command over a portfolio that spans six gold mines and a multi-metal mine. These assets stretch across China, Southeast Asia, and West Africa, underlining Zijin's strategy to build a diversified mining footprint.

Chifeng Gold's recent output clocks in at 14.5 tonnes of gold for 2025, with a slight uptick targeted at 14.7 tonnes for this year. The company posted a net profit in the region of 3 billion yuan for 2025. Resource-wise, Chifeng holds 583 tonnes of gold reserves with a grade of 1.54 grams per tonne as of last year-end figures.

Zijin's management sees untapped potential, especially within Chifeng's exploration ventures in Laos, Ghana, and Liaoning province in China. This aligns with Zijin's wider strategy to capture growth through promising deposits beyond its established operations.

Bolstering physical assets with resource-rich projects is part of why Zijin has been on a buying spree, this being their second major gold-related takeover in just a couple of months. This accumulative approach could reshape the competitive dynamics in the global gold mining space.

The deal now awaits the usual green lights: approval from Chifeng Gold's shareholders and the stamp from China's Anti-monopoly Bureau under the State Administration for Market Regulation.