Good News | Frost & Sullivan Assists Zijin Gold International Limited to Successfully List on the Hong Kong Stock Exchange (2259.HK)

Zijin Gold International Co., Ltd. (hereinafter referred to as 'Zijin Gold International') successfully listed on September 30, 2025. The company plans to issue 34,899,070 H shares, of which 90% will be international offerings, 10% will be Hong Kong public offerings, and an additional 15% will be underwritten by rights issues. The maximum offering price per share is HK$71.59, with a maximum net raise of HK$249.84 billion.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of June 30, 2025), from January to June 2025, and during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 29 (market share 71%), 60 (market share 67%), and 164 (market share 69%) Hong Kong IPOs respectively, ranking first in terms of number. It possesses rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related organizations.

• The company is a global leading gold mining company, leveraging the competitive advantages of Zijin Mining in exploration, development, and operation of low-grade and refractory resources. It has developed into a globally leading, market-oriented gold mining company;

   

• The company holds interests in eight gold mines in gold-rich regions such as Central Asia, South America, Oceania, and Africa, of which it controls and operates seven;

According to the Frost & Sullivan report, in terms of production volume in 2024, the company:

• Ranked eleventh among the world's top fifteen major gold producers;

   

• It occupies a 1.2% market share in the global gold mining market, with all top ten companies being international gold mining enterprises;

   

• The company is one of the top 15 global gold producers with the highest annual compound growth rate in gold production from 2022 to 2025;

   

• The company's all-in sustaining cost of gold (AISC) ranks sixth lowest among the top fifteen global gold mining companies;

   

• The company ranks twelfth in the global top fifteen gold producer resource volume rankings for 2024.

Gold has always been a precious metal used in coinage, jewelry, and art production, and is also widely applied in high-tech manufacturing such as electronic products, remote communications, and aerospace. Gold products include physical gold (such as bullion, alloy gold, gold coins, and gold concentrates produced during the smelting of gold products) as well as gold derivatives. Alloy gold is a semi-pure alloy of gold and silver, usually refined and further purified to obtain the final product, bullion, which is high-purity physical gold with a gold content of not less than 99.5% (for example, gold bars, gold coins, and gold medals). Gold concentrate refers to the ore powder obtained from crushing, grinding, and beneficiation of gold mines, mainly composed of gold, silicon dioxide, etc. The final product of the gold smelting process is gold-carbon matte.

Gold demand is generally divided into the following categories: (i) Jewelry; (ii) Investment (including bullion, gold coins, and exchange-traded funds ("ETFs")); (iii) Central bank reserves; and (iv) Technical or industrial uses. From 2020 to 2024, the world's gold demand grew at an annual compound rate of 5.8%. It reached 1.481 million ounces (4,606.1 tons) in 2024. Compared with 2023, global gold demand increased in 2024 mainly due to increased demand for gold reserves by central banks and investment demand driven by risk diversification needs. Investment includes purchasing bullion, gold coins, and ETFs. In 2021, gold investment decreased by more than 40% compared to 2020, mainly due to reduced gold investment through ETFs. In 2022, gold investment increased, especially in bullion, gold coins, and bullion ETFs, mainly due to geopolitical concerns and the purpose of counter-inflation. In 2023, gold investment decreased by 15% compared to 2022, mainly due to rising gold prices. In 2024, global gold investment showed an upward trend, with the total global gold investment amount increasing to 380 million ounces (1,181.7 tons). From 2024 to 2030, global gold demand is expected to grow steadily at an annual compound rate of 3.2%, mainly due to (i) increased gold demand by central banks for hedging and risk diversification against the backdrop of current geopolitical uncertainties; and (ii) increased investment demand for gold.

From 2020 to 2024, global gold production experienced moderate growth and minor fluctuations. Global gold production increased from 1.118 billion ounces (3,475.9 tons) to 1.163 billion ounces (3,618.4 tons), with an annual compound growth rate of 1.0% during the period. Global gold production is expected to continue growing in the coming years. This trend is mainly driven by geopolitical conflicts and economic uncertainties, as the hedging attribute of gold becomes increasingly important, leading to a significant increase in investment demand and driving up gold production. In addition, potential advancements in mining technology and improved operational efficiency are also expected to contribute to an increase in gold production. It is predicted that gold production will show an upward trend from 2024 to 2030, increasing from 1.163 billion ounces (3,618.4 tons) to 1.241 billion ounces (3,860.8 tons), with an annual compound growth rate of 1.1% during the period.

In recent years, the concentration of the gold mining industry has been increasing, largely due to mergers and resource integration among leading gold producers. Major gold mining companies have taken a leading position in the industry by virtue of their efficient operations, global business reach, financial strength, and other competitive advantages. These large-scale gold mining companies achieve economies of scale through integration, optimizing production processes and reducing unit costs.

At the same time, regulatory control, especially related to safety and environmental protection, has been further strengthened. Gold mining companies with weaker competitiveness, outdated facilities, and insufficient resources have been forced to close or undergo substantial transformation. In addition, the total production cost of gold mining has also increased. This is due to the combined effect of various factors, including declining ore grades, increased mining of difficult-to-treat resources, and increased investment in safety and environmental protection. As a result, smaller gold mining companies have gradually withdrawn from the market.

In 2024, the world's 15 largest gold producers contributed about 30.5% of the global gold production. Purple Gold International ranked eleventh globally in 2024, with a total gold output of 1.5 million ounces (45.3 tons) from its seven mines. In addition, Purple Gold International's gold production had a compound annual growth rate of 21.4% from 2022 to 2024, ranking first in terms of output growth.

●policy barriers

Policy barriers pose significant challenges to new entrants into the global gold mining industry. Governments of major gold-producing countries implement strict regulatory frameworks, including complex licensing procedures, environmental compliance requirements, and land use systems, which can delay projects by several years. Many jurisdictions also enforce resource nationalism, such as higher royalties, export restrictions, or mandatory local ownership, thereby reducing the profitability of foreign investors.

●resource barrier

The global gold mining industry faces significant resource entry barriers, mainly due to the limited supply of high-quality gold deposits and the high capital intensity required for exploration and development. Firstly, economically viable gold reserves are geographically concentrated in a few regions (such as China, Russia, Australia, and Africa), and most easily accessible deposits have already been mined, forcing new entrants to explore remote or politically unstable areas. Secondly, the industry requires substantial upfront investment in exploration, mine development, and infrastructure, with a long payback period, which hinders smaller participants from entering.

●capital barriers

Capital barriers pose a severe challenge to new entrants into the global gold mining industry. Developing gold mines requires substantial upfront investments, typically exceeding billions of dollars, to cover exploration, feasibility studies, infrastructure, and production facilities. The long payback period of the industry (usually over 10 years) and the risk of gold price fluctuations further deter risk-averse investors. Mature participants benefit from economies of scale, existing cash flows, and easier access to financing, while new entrants face high borrowing costs or equity dilution to secure funding.

●technical barriers

Technical barriers significantly limit new entrants into the global gold mining industry. Modern gold extraction and processing rely on advanced technologies such as automated drilling, sensor-based ore sorting, and bioleaching, all of which require specialized knowledge and substantial R&D investment. Mature companies use proprietary technologies and decades of operational data to optimize recovery rates and reduce costs, while new entrants face steep learning curves and inefficiencies. In addition, deeper and lower-grade deposits require cutting-edge exploration technologies and sustainable solutions, further increasing entry costs.

● Global demand rebounds

Global gold demand has risen significantly, mainly influenced by multiple factors. From 2024 to 2030, global gold demand is expected to grow steadily at a compound annual rate of 3.2%, mainly due to (i) central banks increasing their demand for gold to preserve value and diversify risks against the backdrop of current geopolitical uncertainties; and (ii) an increase in global gold investment demand. As a traditional value storage tool, gold's attractiveness is growing increasingly in the face of economic uncertainty. Inflationary pressures and currency value fluctuations prompt investors to seek the stability provided by gold. This trend is fully in line with the strategic focus of leading gold producers on expanding their global asset bases. Companies with strong resources, reserves, and production capabilities are capable of meeting rising market demand, leveraging their rich experience in gold mining and exploration to ensure stable supply.

●Advancements in mining technology

The advancement of mining technology is completely transforming the gold mining industry. Innovative technologies and equipment improve extraction efficiency, reduce costs, and make previously uneconomical deposits viable. Leading companies in this industry have always been at the forefront of adopting and developing cutting-edge technologies. The commitment to technological innovation not only improves operational efficiency but also enhances their competitive advantage in the global market. By integrating advanced technology into their mining processes, companies can optimize resource utilization and production and ensure sustainable growth within the evolving landscape of the gold mining industry.

● Digital Transformation of Gold Mining

The gold mining industry is at the forefront of a digital revolution. Companies are increasingly integrating advanced technologies such as artificial intelligence, machine learning, and automation into their operations. These digital tools improve efficiency, reduce operational risks, and enhance decision-making processes. By utilizing data analysis and predictive models, gold producers can optimize mining and processing activities, thereby increasing productivity and saving costs. Digital transformation will reshape the industry, making it more resilient and adaptable to market changes.

● Environmental, social and governance priorities and sustainable practices

Environmental, social, and governance factors are increasingly affecting the gold mining industry. Consumers and investors demand higher environmental, social, and governance standards, driving companies to adopt sustainable practices. Leading gold producers have actively adopted environmental, social, and governance principles and implemented responsible mining practices in their operations. By complying with high environmental, social, and governance standards, companies not only meet the expectations of investors but also contribute to the long-term sustainable development of the gold mining industry.

● Exploration and new discoveries

Searching for new gold deposits is a key trend in the industry. As existing mines face the challenge of depletion, companies are investing heavily in exploration technology and geological research. Advanced geophysical and geochemical techniques, as well as satellite images and data analysis, are helping to identify potential new gold deposits in remote and previously unexplored areas. The emphasis on exploration is crucial for ensuring a stable supply of gold in the future.

● Industry concentration continues to increase

With the intensification of market competition and the increase in resource concentration, leading mining companies have continuously expanded their market share by leveraging their advantages in technology, capital, management, and resource acquisition, gradually occupying a dominant position in the industry. At the same time, several companies with weaker competitiveness are facing operational pressure, with some even choosing to exit the market. This change in the industry pattern not only enhances the market influence of leading companies but also makes the resource allocation of the entire gold mining industry more concentrated and efficient, driving the industry towards greater scale and intensive operations.

Frost & Sullivan has extensive research experience in the chemical and materials industries, assisting well-known enterprises in successfully listing on capital markets. Successful listing cases include: Jiaxin International (3858.HK), Nanshan Aluminum (2610.HK), Chifeng Gold (6693.HK), BYOU Group (9893.HK), Conch Materials Technology (2560.HK), Qiangbang New Materials (001279.SZ), Migao Group (9879.HK), Jihai Resources (2489.HK), Zhongbao New Materials (2439.HK), Shengneng Group (2459.HK), Jinli Yongcim (6680.HK), Avia Avian (IDX: AVIA), Global New Materials (6616.HK), Dafeng Equipment (2153.HK), Yihai International (8659.HK), GHW (9933.HK), Sanhe Fine Chemicals (0301.HK), Xingyu Holdings (2346.HK), Xinghe Holdings (1891.HK), Xuyang Group (1907.HK), Long Resources (1712.HK), Shandong Gold (1787.HK), Henan Jinma (6885.HK), Xingye New Materials (8073.HK), Dongguang Chemicals (1702.HK), Zhongqi Group (1932.HK), Xinbang Holdings (1571.HK), Meigu Technology (8349.HK), Huajin International (2738.HK), Flot Glass (6865.HK), Dynos (1452.HK), Caike Chemicals (1986.HK), Chang'an Renheng (8139.HK), Sansida (1337.TWSE), Born NYSE, CPC NYSE, Gu NYSE, Tianhe Chemicals (1619.HK), Yihua Holdings (2121.HK), Sijia Group (1863.HK), and others.