Zijin Gold shares rose as much as 19 percent in Hong Kong trading following the announcement, reflecting investor optimism over the miner’s expanding African footprint and the strong momentum in gold prices.
Allied Gold, which is registered in Canada, owns and operates gold mines in Africa that produced roughly 12 tonnes of gold in the previous year. The deal is expected to significantly boost Zijin Gold’s output capacity and reserve base, reinforcing its long-term growth strategy.
The acquisition comes amid a powerful rally in global gold markets, as the metal has gained strongly over the past three years amid investors increasingly turning to non-sovereign assets to hedge against inflation, currency volatility, and geopolitical risk. That surge has pushed mining companies to expand production through acquisitions and consolidation.
Zijin Mining said the transaction reflects its focus on acquiring mature assets with existing production. The company added that the targeted projects also offer room to expand reserves through further exploration and technological upgrades.
Market analysts view the deal as strategically important. Morgan Stanley said the successful completion of the acquisition would mark a major milestone for Zijin Gold, highlighting potential synergies with nearby assets, including the Akyem mine in Ghana and the Bisha project in Eritrea, which is already owned by Zijin Mining.
Zijin Mining’s broader stock performance has also attracted attention. The company’s shares have nearly tripled over the past year, lifting its market value to levels comparable to those of global mining heavyweights such as Rio Tinto and BHP.
Citigroup described the acquisition price as attractive given current gold prices and reiterated its positive outlook on Zijin Mining.
Spot gold climbed above $5,110 per ounce on Monday, setting a new record. Prices are up nearly 20 percent so far this month, following a 65 percent surge last year, the metal’s strongest annual performance since 1979.
