Valuation Restructuring of Asian Precious Metal Mining Enterprises' US Stocks: New Opportunities for Strategic Layout of Singapore Blue-Chip Stocks in the Fed Rate Cut Cycle——In-Depth Analysis on September 29, 2026

September 2026 marked a key turning point for the global precious metal market. Fed Chairman Powell released dovish signals in his latest speech, hinting at a possible rate cut cycle within the year. Coupled with global central banks' Q2 gold purchases hitting a historic high (220 tons, up 25% year-on-year), gold prices returned to the $4300 mark, while silver hit a new high for the year due to surging demand from photovoltaics and AI chips. Against this backdrop, Asian precious metal mining enterprises listed in the US (ADR) saw divergent stock prices, with valuation logic shifting from "gold price correlation" to "performance-driven + cost control," and related targets in Singapore blue-chip stocks (such as Zijin Mining, Indonesia's Antam) becoming the focus of investor attention. This article will deeply analyze the investment value of Asian precious metal mining enterprises' US stocks from four dimensions: Fed policy, central bank gold purchases, mining enterprise performance, and valuation restructuring, providing strategic layout references for Singapore investors.

I. Fed Rate Cut Cycle Begins: The "Stimulant" for the Precious Metal Market

In September 2026, the Fed's meeting minutes showed that officials' confidence in inflation returning to the 2% target strengthened, while concerns about potential economic slowdown grew. Powell clearly stated in the press conference, "If inflation remains below target, we will consider adjusting monetary policy," a statement interpreted by the market as a "dovish signal," triggering a 4% single-day surge in gold prices, the strongest increase since February. For Asian precious metal mining enterprises, Fed rate cuts mean a weaker dollar, and the financial attributes of gold (hedging, anti-inflation) will be strengthened, thereby enhancing mining enterprises' profit expectations.

Historical data shows that Fed rate cut cycles are usually accompanied by rising gold prices. For example, during the 2019-2020 rate cut cycle, gold prices rose from $1300 to $2000, a 54% increase. Currently, gold prices have rebounded from $3800 at the beginning of 2026 to $4300, a 13% increase, but are still below the 2020 peak, indicating room for further growth. In addition, the rate cut cycle will reduce mining enterprises' financing costs, especially for Asian mining enterprises with dollar debt, which will improve their financial conditions and valuation levels.

1.1 Impact Mechanism of Fed Policy on Gold Prices

• Dollar Weakens: Rate cuts reduce the attractiveness of the dollar, leading to a decline in the dollar index. Since gold is priced in dollars, a weaker dollar will push up gold prices.
• Real Interest Rates Fall: Rate cuts lower real interest rates (nominal interest rate - inflation rate), and real interest rates are the "opportunity cost" of gold. A decline in real interest rates reduces the cost of holding gold, thereby stimulating demand.
• Hedging Demand Rises: Rate cuts usually mean increased economic uncertainty, and investors will turn to hedging assets like gold, pushing up prices.

Currently, the Fed's real interest rate has fallen from 2.5% at the beginning of 2026 to 1.8%, approaching a historical low, which supports the rise in gold prices. At the same time, the market expects 2-3 rate cuts in 2026, each by 25 basis points, further strengthening the expectation of gold price increases.

II. Global Central Bank Gold Purchase Boom: The "Stabilizer" for the Precious Metal Market

In Q2 2026, global central bank gold purchases reached 220 tons, a historic high, up 25% year-on-year. Emerging market countries such as China, Russia, and India were the main buyers, while central banks in developed countries (such as the Fed) remained on the sidelines. The reasons for the central bank gold purchase boom are mainly two: hedging against dollar depreciation risk and diversifying foreign exchange reserves. For Asian precious metal mining enterprises, central bank gold purchases mean increased gold demand, especially long-term demand, which will support the bottom of gold prices.

For example, the People's Bank of China has increased its gold holdings for 15 consecutive months. As of August 2026, its gold reserves reached 2100 tons, accounting for 3.5% of foreign exchange reserves, a 10% increase from the same period in 2025. The Reserve Bank of India also plans to increase gold holdings in the next two years to cope with rupee depreciation and inflation pressure. These central bank gold purchase behaviors not only increase short-term gold demand but also boost market confidence, making it difficult for gold prices to fall sharply.

2.1 Impact of Central Bank Gold Purchases on Mining Enterprises

• Demand Support: Central bank gold purchases are long-term demand for gold, which will not change due to short-term market fluctuations, providing a stable sales channel for mining enterprises.
• Price Stability: Central bank gold purchases will suppress the fall in gold prices, so that mining enterprises' profits will not be significantly reduced by price fluctuations.
• Valuation Enhancement: Central bank gold purchases mean enhanced financial attributes of gold, and mining enterprises' valuations will shift from "industrial products" to "financial assets," thereby increasing valuation indicators such as PE and PB.

For example, Zijin Mining (Zijin Mining, ADR code: ZIJMY), one of the largest gold mining enterprises in Asia, with its gold production accounting for 5% of the global total, benefited from the central bank gold purchase boom. Its gold sales volume in Q2 2026 increased by 12% year-on-year, with revenue reaching $12 billion, up 15% year-on-year. At the same time, its PE rose from 15x at the beginning of 2026 to 18x, and PB from 2.5x to 3.2x, with a significant improvement in valuation levels.

III. Q2 Financial Reports of Asian Precious Metal Mining Enterprises: Divergent Performance, Cost Control Key

In Q2 2026, the financial reports of Asian precious metal mining enterprises listed in the US (ADR) showed divergent performance. On the one hand, some mining enterprises saw significant increases in revenue and profits due to rising gold prices and increased production; on the other hand, some mining enterprises had underperforming results due to rising costs (such as energy, labor costs) and declining production. This divergence made investors more concerned about mining enterprises' cost control capabilities and production growth potential.

For example, Zijin Mining (ZIJMY) had Q2 revenue of $12 billion, up 15% year-on-year, and net profit of $2.5 billion, up 20% year-on-year. Its cost control capability was outstanding, with the unit gold production cost falling from $1200/ounce in the same period of 2025 to $1100/ounce, mainly due to the early commissioning of its copper-gold mine in Serbia (commissioned in May 2026), which reduced production costs. Another mining enterprise—Indonesia's Antam (ANTM, ADR code: ANTMY) had Q2 revenue of $8 billion, up 8% year-on-year, and net profit of $1.2 billion, up 5% year-on-year. Its unit gold production cost rose from $1150/ounce to $1200/ounce, mainly due to rising labor costs caused by new Indonesian mining regulations.

3.1 Reasons for Divergent Performance

• Production Differences: Zijin Mining's early commissioning of the copper-gold mine in Serbia increased gold production; while Antam's production growth was slow due to new Indonesian mining regulations.
• Cost Control: Zijin Mining reduced production costs through technological upgrades and economies of scale; while Antam's cost control was not as expected due to rising labor costs.
• Product Structure: Zijin Mining has a high proportion of copper-gold mines, and the rise in copper prices (copper prices rose 10% in Q2 2026) also increased its revenue; while Antam is mainly focused on gold, with a single product structure, making it more vulnerable to gold price fluctuations.

This divergence made investors more favor mining enterprises with production growth potential and strong cost control capabilities. For example, Zijin Mining's PE is 18x, lower than the industry average of 20x, but its net profit growth rate is 20%, indicating that its valuation is attractive; while Antam's PE is 22x, higher than the industry average, but its net profit growth rate is only 5%, with an overvalued valuation.

IV. Valuation Restructuring: From "Gold Price Correlation" to "Performance-Driven + Cost Control"

In the past, the valuation of Asian precious metal mining enterprises was mainly correlated with gold prices, i.e., stock prices rose when gold prices rose and fell when gold prices fell. However, since 2026, this logic has been changing, and valuation has begun to shift to "performance-driven + cost control." Specifically, the valuation of mining enterprises no longer depends solely on gold prices but on their profit growth capabilities and cost control levels.

For example, Zijin Mining's PE rose from 15x at the beginning of 2026 to 18x, but its net profit growth rate increased from 10% to 20%, indicating that its valuation increase is reasonable; while Antam's PE rose from 20x to 22x, but its net profit growth rate fell from 8% to 5%, indicating an overvalued valuation. In addition, mining enterprises' PB also began to rise. Zijin Mining's PB rose from 2.5x to 3.2x, while Antam's PB rose from 3.0x to 3.5x, but Zijin Mining's return on equity (ROE) rose from 15% to 18%, while Antam's ROE fell from 12% to 10%, indicating that Zijin Mining's valuation is more reasonable.

4.1 Reasons for Valuation Restructuring

• Fed Rate Cuts: The rate cut cycle enhances mining enterprises' profit expectations, shifting valuation from "cyclical stocks" to "growth stocks".
• Central Bank Gold Purchases: Central bank gold purchases support the long-term demand for gold, making mining enterprises' performance more stable, and shifting valuation from "volatile stocks" to "stable stocks".
• Cost Control: Mining enterprises reduce production costs through technological upgrades and economies of scale, enhancing profitability, and shifting valuation from "cost-sensitive stocks" to "cost-advantaged stocks".

For Singapore investors, this valuation restructuring means they can focus on mining enterprises with profit growth potential and strong cost control capabilities, rather than just focusing on gold price fluctuations. For example, Zijin Mining's ADR price on the Singapore Exchange (SGX) rose from S$18 at the beginning of 2026 to S$22, a 22% increase, while Antam's ADR price rose from S$25 to S$28, a 12% increase, but Zijin Mining's increase was higher than Antam's, indicating that the market favors performance-driven mining enterprises.

V. Related Targets in Singapore Blue-Chip Stocks: Layout Opportunity Analysis

Among Singapore blue-chip stocks, the main targets related to Asian precious metal mining enterprises include Zijin Mining (ZIJMY), Antam (ANTMY), Shandong Gold (SDGOLD, ADR code: SDGLY), etc. These targets have active ADR trading on the Singapore Exchange (SGX) and are important choices for investors to layout in the precious metal cycle.

5.1 Zijin Mining (ZIJMY)

• Performance Advantage: Q2 revenue $12 billion, up 15% year-on-year; net profit $2.5 billion, up 20% year-on-year.
• Cost Control: Unit gold production cost $1100/ounce, lower than the industry average of $1200/ounce.
• Reasonable Valuation: PE 18x, lower than the industry average of 20x; PB 3.2x; ROE 18%.
• Layout Recommendation: Buy on dips, target price S$25 (current S$22), about 14% upside.

5.2 Antam (ANTMY)

• Divergent Performance: Q2 revenue $8 billion, up 8% year-on-year; net profit $1.2 billion, up 5% year-on-year.
• Cost Increase: Unit gold production cost $1200/ounce, higher than the industry average.
• Overvalued: PE 22x, higher than the industry average; PB 3.5x; ROE 10%.
• Layout Recommendation: Wait and see, intervene after cost control improves.

5.3 Shandong Gold (SDGLY)

• Production Growth: Q2 gold production 15 tons, up 10% year-on-year, mainly due to the expansion of Shandong Linglong Gold Mine.
• Stable Costs: Unit gold production cost $1150/ounce, stable.
• Reasonable Valuation: PE 19x, close to the industry average; PB 3.0x; ROE 16%.
• Layout Recommendation: Buy on dips, target price S$18 (current S$16), about 12% upside.

VI. Investment Strategy: Buy on Dips, Focus on Cost Control and Production Growth

For Singapore investors, laying out Asian precious metal mining enterprises' US stocks requires the following strategies:

• Buy on Dips: Currently, gold prices are at the $4300 mark. If gold prices fall below $4000, you can buy targets like Zijin Mining and Shandong Gold on dips.
• Focus on Cost Control: Choose mining enterprises with unit production costs lower than the industry average, such as Zijin Mining ($1100/ounce) and Shandong Gold ($1150/ounce).
• Focus on Production Growth: Choose mining enterprises with production growth potential, such as Zijin Mining (Serbia's copper-gold mine) and Shandong Gold (Linglong Gold Mine expansion).
• Diversified Investment: Do not invest all funds in a single mining enterprise. You can diversify investments in Zijin Mining, Shandong Gold, Antam, etc., to reduce risks.

In addition, investors can also pay attention to gold ETFs in Singapore blue-chip stocks, such as SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), which track gold prices and are suitable for investors with lower risk appetite. At the same time, you can also pay attention to silver mining enterprises, such as Pan Asia Metals (Pan Asia Metals, ADR code: PAM), as the industrial demand for silver (photovoltaics, AI chips) surges, its stock price is expected to rise.

VII. Conclusion: Strategic Layout Opportunities in the Precious Metal Cycle

In September 2026, the Fed rate cut cycle, the global central bank gold purchase boom, the divergent performance of Asian precious metal mining enterprises, and valuation restructuring provided strategic layout opportunities for Singapore investors. Targets like Zijin Mining and Shandong Gold, with strong cost control capabilities and production growth potential, became the focus of investor attention. In the future, as the Fed rate cuts progress and central bank gold purchases continue, gold prices are expected to rise further, and the valuations of Asian precious metal mining enterprises will also continue to increase. Investors should seize this opportunity, buy on dips, focus on cost control and production growth, and achieve asset preservation and appreciation.