China’s Zijin Mining Group has opened its gold and copper-focused investment fund to professional investors in Hong Kong. The move comes as global interest in these two metals continues to rise amid market uncertainty.
The fund is managed by Gold Mountain Asset Management, a fully owned overseas subsidiary of Zijin Mining. Until now, the fund mainly raised capital from within the company and its employees. But starting this year, it’s available to outside professional investors looking to benefit from the bullish outlook on precious metals.
“We are optimistic about gold,” said Lisa Liu Sha, managing director and portfolio manager at Hong Kong-based Gold Mountain. “Ongoing geopolitical tensions and unresolved trade issues will likely continue to support gold prices.”
Liu believes gold prices could reach as high as US$4,000 per ounce this year. She pointed to the weakening US dollar and increased demand from both investors and central banks as key drivers.
On Monday, gold prices rose 0.7% to US$3,223.55 per ounce. This followed Moody’s recent downgrade of the US government’s credit rating from Aaa to Aa1, which pressured the dollar further.
Joni Teves, a strategist at Swiss bank UBS, also maintains a bullish view on gold. He predicts prices could hit US$3,500 by the end of 2025 and possibly rise to US$3,600 by mid-2026. He cited global risks, tariff concerns, and potential US interest rate cuts as contributing factors.
According to Liu, the rise in gold prices is not only driven by demand but also by limited supply. “Many mines are aging, and the quality of ore is dropping due to years of overuse and lack of new investment,” she explained. As a trained geological engineer, Liu highlighted that most promising exploration sites have already been explored, and new finds are becoming rare. This makes it harder for miners to maintain current production levels.
The Zijin Global Fund, one of the funds managed by Gold Mountain, currently oversees about US$180 million in assets. It was created in 2013 as part of Zijin’s international expansion strategy and acquisition of mining assets. The fund is now open to professional investors, such as family offices and brokerage firms, with at least HK$8 million (US$1.02 million) in assets.
Liu noted that the fund returned 9.6% last year and recorded an 18% return in just the first four months of this year. She declined to share the fund’s average return since it was launched.
In total, Gold Mountain manages around US$600 million in assets. This includes investments in mining companies listed in North America, the UK, Australia, and Hong Kong. When including funds managed under a separate mandate from Zijin Mining, the figure rises to US$6 billion.
Besides managing public equity investments, Gold Mountain also provides private credit to other mining firms for overseas development and expansion. In return, it sometimes accepts gold as payment.
Copper is also a key focus for Gold Mountain. Liu is confident about its future due to growing demand and tight supply. “There’s increasing need for copper in the construction of global data centers, driven by cloud computing and AI,” she said. But similar to gold, copper supply is under pressure due to years of underinvestment.
Zijin Mining is also reorganizing its global gold assets. Last month, the company announced plans to consolidate its overseas gold operations under a unit called Zijin Gold International, which was established in 2007. The company is exploring the possibility of listing this unit to unlock higher value for shareholders. It said the plan is aimed at revaluing its assets amid rising gold prices.
Liu declined to comment on whether Gold Mountain will be included in this asset restructuring.
Zijin Mining posted strong financial results last year, with net profit soaring 52% to a record 32 billion yuan (US$4.4 billion). This growth was mainly driven by increased gold production and higher market prices. Its Hong Kong-listed shares have already climbed 22% this year.
The company’s international copper mining operations span countries including Serbia, the Democratic Republic of Congo, Eritrea, and Peru. Zijin also owns gold mines in a wide range of countries such as Colombia, Australia, Serbia, Peru, Tajikistan, Kyrgyzstan, Papua New Guinea, Suriname, and Guyana. It is currently in the process of acquiring another gold mine in Ghana.
