Zijin Mining - A/H: Tibet trip takeaways: Julong delivery on track with incremental pipeline in the region

We attended Zijin Mining's Julong Copper site visit last week, followed by an investor meeting update on Xianglong Copper, Lakkor Tso Salt Lake lithium and Tianyuan/Xiongcun Copper. The trip reinforced our positive view on Zijin Mining and Tibet's role in supporting 2026-2028 growth delivery. Management also highlighted Zijin's edge in technology, ESG execution and high-altitude project delivery. Key takeaways: 1) Julong Phase II ramp-up and phase III progress — 2027 copper output indicated at 310-320kt, while capacity could reach 350-400kt after entering the high-grade area in 2029-2030E, even without Phase III; 2) Xianglong and Tianyuan/Xiongcun upside — nameplate capacity of 76.4ktpa and c.46.6ktpa, respectively; 3) cost trajectory — Julong's 8M26 copper cash cost after by-product credits was Rmb24,700/t, with scale, electrification and automation expecting to offset part of the pressure from self-operation and taxes in 2027;