Sunday, July 6, 2014

CNMC Goldmine, worth the RISK?

CNMC Goldmine listed on SGX as a Catalist on 28/10/2011

FY             Gold produce (oz)  Ave Gold Px (USD)     Accumulated Losses (SGD)
2010              553                          1224.5                       -4,577,383    
2011             3097                         1571.5                       -9,737,450
2012             4641.86                    1668.98                     -8,993,664
2013             12649.06                  1411.20                     -6,639,065
2014 (TTM) 4010                         1293.10                    

Financial Data
(All units in USD)
FY            EPS               Revenue              Net Income
2010         -0.46c            0.53 mil                 -1.93 mil
2011         -1.34c            5.142 mil               -5.137 mil
2012         0.18               16.761 mil              1.010 mil
2013         0.66               16.625 mil              3.433 mil

Debt

  • Current : 1.129 mil
  • L.T       : 0.011 mil
Cash-on-Hand : 4.38 mil
NAV: 3c
Outstanding shares: 407,693,000
Dividend Payout Month: Jan, Jun

Opinion

In my own opinion, CNMC is great to hold at the current price of $0.265. Within its few years , it managed to increase its revenue, lower its accumulated losses and increase its eps. According to its latest quarter filings, it managed to produce 4000 oz, and with gold price at a steady USD 1300 /oz, it should be able to reduce its losses. The managment has also made a commitment to reduce its all-in-cost for gold to a target of USD 700 / oz. Given that CNMC is actively looking to increase its mining activities in gold and also the latest tied up in tin mining in Perak, I'm looking forward to seeing higher revenue from CNMC for the next few quarters. 


Alternative views:

http://www.nextinsight.net/index.php/story-archive-mainmenu-60/924-2014/8220-cnmc-in-2014-higher-economies-of-scale-higher-gold-production

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

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