Financial Strategy And Evaluation Of Zijin Mining’s Diversified Expansion Under The Background Of Dual Carbon Drive

With the formation of the global "double carbon" consensus,the green and lowcarbon transformation of energy means the transformation of the energy system from fuel-intensive to material-intensive.Mineral resources will play a vital role in the process of global energy transformation.The important mineral resources required by the new energy industry will show explosive growth,which will drive the high growth of the consumption and demand of corresponding mineral resources,and the mining industry will also usher in unprecedented development opportunities.It is against this background that in order to meet the new development requirements and form long-term competitiveness,mining enterprises began the transformation of diversification strategy.Diversification strategy transformation cannot be separated from the support of enterprise financial strategy.Only by selecting appropriate financial strategy can the success of enterprise transformation be ensured.This paper takes Zijin Mining,a leading mining enterprise,as an example to explore the reasons for the implementation of diversification strategy.In-depth,Zijin Mining’s financial strategy in the period of diversification transformation is introduced and analyzed,beginning with financing,investment,and dividend distribution strategies.Additionally,the value creation ability and capital status of the company are combined to provide a comprehensive analysis.By calculating financial indicators,the financial strategy matrix of Zijin Mining from 2014 to 2021 can be evaluated and optimized,highlighting its current issues and providing inspiration for its financial strategy.At the same time,it also hopes to provide reference for the implementation and adjustment of the financial strategy in the diversified transformation of China’s mining enterprises.Research has revealed that Zijin Mining is situated in the first quadrant of the financial strategy matrix,and is part of a cash-strapped,value-generating business.At present,Zijin Mining has a relatively simple financing method and high financing risk.In addition to the aggressive investment strategy in the expansion period,the investment in mine resources has a slow effect,resulting in a shortage of funds in the expansion period of the enterprise.Zijin Mining’s acquisition of a high premium,leading to elevated operating costs and further widening the capital gap,was also taken into account.This paper proposes corresponding suggestions and optimization measures in response to the issues mentioned above.Organizations can employ overseas investment,pledge loans,and other multi-channel financing strategies to optimize their capital structure and address the issue of capital deficiency.Strategizing investment entails restraining the magnitude of investment,restraining the velocity of investment,augmenting the effectiveness of capital utilization,and judiciously apportioning enterprise assets.In terms of dividend distribution strategy,the dividend policy combining cash dividend and dividend is implemented to reduce the company’s capital pressure and provide financial support for enterprise investment activities.