By Sherry Qin
Zijin Gold International's stocks hit a record high following its US$4 billion deal for a Canadian gold miner, adding to a furious rally powered by gold's record-breaking run.
The Chinese gold miner's market value now exceeds half a trillion Hong Kong dollars, or over US$64.12 billion, more than triple its market capitalization when it listed in September.
Shares of Zijin Gold, a unit of China's largest mining company Zijin Mining Group, jumped 13% on early Tuesday to HK$236, taking its year-to-date gains to more than 60%.
Allied Gold said Monday that it has agreed to be acquired by Zijin Gold for roughly US$4.01 billion. Allied Gold operates a diversified portfolio of producing and development-stage gold assets in Africa, specifically in Mali, Ivory Coast and Ethiopia.
The acquisition price is attractive at current high gold prices, and the deal will likely enhance Zijin's gold output and profitability, Citi analysts said in a research note.
"We believe this acquisition further evidenced Zijin's commitment to grow its gold portfolio through Zijin Gold International," the analysts added.
Gold-mining stocks in Hong Kong and China have rallied in recent months as gold prices soar to new milestones on strong demand.
Fears about a U.S. government shutdown, coupled with and heightened geopolitical tensions after the U.S. seizure of Venezuela's strongman Nicolas Maduro and President Trump's ambition to annex Greenland have pushed up the precious metal's prices.
Spot gold climbed above US$5,000 a troy ounce for the first time on Monday, and was last 0.9% higher at US$5,061.01 an ounce.
Zijin Mining Group climbed 6.3% in Hong Kong and 7.0% in Shanghai, while Zhongjin Gold was up 5.0%.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
01-26-26 2252ET
