Zijin Gold to Launch Largest Gold IPO in History on Hong Kong Exchange This Month
China’s largest mining company, Zijin Mining (HK: 2899), is spinning off its Zijin Gold International division later this month. The deal is expected to raise over USD$3 billion on the Hong Kong Stock Exchange, making it the largest IPO in Hong Kong since Kuaishou’s US$6.2 billion debut in 2021. Over the last 20 years, Zijin Mining has gained by 6,890.89% or 104.17x more than the Hang Seng Index and 16.12x more than the S&P 500.
Even Wheaton Precious Metals (WPM), which was NIA's first ever silver stock suggestion and has been the #1 largest gaining U.S. listed large-cap mining related stock since NIA's 2009 suggestion (click here to see NIA's top 70 largest gaining stock, option, and crypto suggestions in history), has only gained by 2,285.35% over the last 20 years.
For U.S. investors, Apple (AAPL) and Nvidia (NVDA) are the classic ‘if only I had bought it 20 years ago’ stocks. For Chinese investors, Zijin Mining (HK: 2899) is the same kind of story, a once-in-a-generation compounder that made early holders extremely wealthy.
Zijin Mining’s spin-off and IPO of Zijin Gold International this month is more than a gold play… it’s a sophisticated financial strategy to boost the parent’s copper acquisition firepower. Zijin is only offering 15% of Zijin Gold International in its IPO thereby keeping ~85% ownership. This ensures Zijin Mining will continue to consolidate results from Zijin Gold International into the parent Zijin Mining's balance sheet while tapping Hong Kong’s premium gold valuations of 20–25x earnings, which is not only higher than what the average U.S. listed gold miner trades for, but far exceeds the lower multiples of diversified mining companies listed in Hong Kong and/or Shanghai.
Zijin Mining as of June 30th had a cash position of USD$5 billion. Following Zijin Gold International's IPO this month, Zijin Mining will see its cash position grow to USD$8 billion thereby strengthening its balance sheet and enhancing borrowing capacity while improving its credit profile with Moody’s and S&P.
We already know that Zijin Mining has shown interest in acquiring Solaris Resources (TSX: SLS), owner of Lowell Mineral Exploration S.A., which was founded around the Ecuador projects originated by the late geologist J. David Lowell including its flagship Warintza copper project. By Zijin Gold International raising USD$3 billion in its IPO later this month, Zijin Mining will gain greater financial flexibility to be used for the acquisition of major new copper projects.
Highlander Silver (TSX: HSLV)'s Chairman and 33.1% owner Richard Warke is also the largest shareholder of SLS so if we see Zijin Mining acquire SLS before year-end, HSLV is likely to finish 2025 trading deep into double digit territory.
We all saw how much our Highlander Silver (TSX: HSLV) and Titan Mining (TSX: TI) increased in value immediately after our Augusta Gold (TSX: G) got acquired. Click here to see the video NIA's President made after AngloGold Ashanti (AU) acquired our Augusta Gold (TSX: G) at a huge premium. Solaris Resources (TSX: SLS) has a market cap of $1.185 billion or 8.20x higher than Augusta Gold.
NIA's Minaurum Gold (TSXV: MGG) is sort of like a low market cap Mexican gold/silver version of SLS because it controls Mexican gold/silver projects that J. David Lowell believed had huge potential including his favorite Mexican project, Santa Marta. MGG's Alamos Silver Project is fully permitted for production with a 29-year local community agreement signed in December, 4 rigs currently spinning, and its maiden resource estimate coming soon!
Regardless of what happens to SLS, Zijin Gold International is going to have USD$3 billion in cash to spend acquiring new international gold projects. If Zijin Gold spends only a fraction of this USD$3 billion on the acquisition of TSX Venture listed gold/silver exploration & development companies, it will help to rapidly reinflate the valuations of the highest quality gold/silver exploration companies to levels that are 500-1,000% above their current share prices!
Remember, gold/silver isn't a critical mineral in Canada (they are only critical minerals in the U.S.), so Zijin Gold will be allowed to acquire Canadian based gold/silver exploration & development companies. SLS had to leave Canada and move overseas because it is a copper exploration company and Canada wouldn't allow Zijin to acquire even a 15% stake since copper is a critical mineral.
Be sure to research NIA's latest brand-new stock suggestion Questcorp Mining (CSE: QQQ) immediately. It gained by 20% on Friday as they actively drill high-grade CRD targets at the La Union Project in Sonora Mexico. QQQ's market cap here at $0.21 per share is only CAD$14.762 million or USD$10.69 million:
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA’s President has purchased 125,000 shares of HSLV and can buy or sell shares at any time. NIA has received compensation from MGG of US$30,000 cash for a three-month marketing contract and previously received US$30,000 cash for a three-month marketing contract which has since expired. NIA has received compensation from QQQ of US$30,000 cash for a three-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.
