SINGAPORE (Aug 14): CNMC Goldmine Holdings posted a 90% on-year decline in earnings to US$0.5 million ($0.7 million) for the second quarter ended June, versus earnings of US$4.7 billion a year ago on lower revenue.
This brings earnings per share (EPS) for the quarter to 0.12 US cents, compared to 1.16 US cents a year earlier.
Revenue for the quarter came in at US$4.9 million, 61.5% down from the US$12.6 billion announced in 2Q16 due to a decrease in the production and sales volume of fine gold, as a result of lower ore grades.
On a quarter-on-quarter basis, however, the group saw its earnings rise nearly ninefold compared to US$54,834 in 1Q17. 2.8% improvement in revenue compared to US$4.7 million in the previous quarter.
This was largely attributable to a rise in output at the group’s flagship Sokor gold field in Malaysia’s Kelantan state, which rose to 3,835.50 ounces of fine gold in the current quarter from 3,669.90 ounces in 1Q, hence offsetting a slight drop in average selling price (ASP).
An unrealised foreign-exchange gain on CMNC’s ringgit-denominated cash deposits also helped to boost the group’s earnings when compared q-o-q.
CNMC says it is expediting the construction of its carbon in leach (CIL) plant at its flagship Sokor gold field in Kelantan, which will enable the extraction and processing of higher-grade gold ore – and hence boost gold production and stabilise overall gold production volume, which is presently limited at the heap leaching facility due to low ore grades.
Following the completion of the acquisition of Kelgold Mining in May this year, the group adds that it has been conducting geochemistry survey work within the concession under this new wholly-owned subsidiary.
Furthermore, geological exploration is ongoing at CNMC Pulai’s brownfield site in Kelantan, which has a focus on gold and iron. CNMC says it is committed to locating mineral resources at this site, and to securing a JORC-compliant report on these resources.
