Morgan Stanley released a research report indicating that management at Zijin Gold International (02259) reaffirmed its gold production target of approximately 59 tonnes for this year, with plans to boost capacity to around 70 tonnes by 2028 through organic growth initiatives.

Additionally, the company is in the process of formulating a dividend policy, where the payout ratio will be tied directly to profitability levels. The investment bank has maintained its "Overweight" rating on the stock, setting a price target of HK$189.

Morgan Stanley noted that Zijin Gold International is actively advancing multiple merger and acquisition projects, targeting substantial gold assets with reserves of roughly 100 tonnes and an annual production potential of about 10 tonnes. The preferred acquisition regions are Central Asia, South America, and Africa, with the firm applying a gold price assumption of $3,000 to $3,500 per ounce when evaluating new acquisitions.

On the other hand, the company projects expansion capital expenditures of $3.1 billion to $3.2 billion for the 2026-2028 period, while annual sustaining capital expenditures are expected to range between $300 million and $500 million.