SINGAPORE (Feb 27): CNMC Goldmine Holdings reported earnings of US$1.25 million in 4Q18, compared with US$1.29 million in 4Q17 after accounting for unrealised foreign-exchange loss, expenses for its Hong Kong dual listing, and higher tax expenses due to the lapse of the Pioneer Status Incentive Scheme in June 2018.
For 4Q18, revenue rose to US$12.61 million from US$4.86 million for 4Q217. This gave rise to a core net profit of US$1.79 million, up from US$0.93 million a year earlier. With the improved performance, the group generated US$4.34 million in net cash from operations during the quarter, up from just US$20,316 in 4Q17.
For FY18, a surge in gold production to an all-time high lifted CNMC’s 2018 revenue to a new record compared to 2017.
Revenue for FY18 more than doubled to US$39.55 million in FY18 from US$19.15 million in FY17 as the gold miner produced a record 31,473.07 ounces of fine gold, up from 14,816.53 ounces in FY17.
CNMC says the key driver behind the output increase was the group’s carbon-in-leach (CIL) plant, which began commercial production in May last year. The CIL facility, used for processing higher-grade ore, is one of three production plants the group operates at its flagship Sokor gold field in Malaysia’s Kelantan state.
Including the impact of forex translation, dual listing and tax expenses as well as other one-off expense and credit, FY18 earnings came in at US$1.68 million, compared to US$2.78 million in FY17.
A final tax exempt dividend of 0.2 cent per share has been proposed.
As at Oct 15 2018, the total measured, indicated and inferred gold mineral resources for the Sokor Project is estimated at 785,000 ounces, up from 724,000 ounces as at Dec 31 2017, according to independent valuation.
“This increase in gold resources, after factoring in what has been taken out from the ground, bodes well for our production outlook. We also expect the various initiatives we previously highlighted, such as adding new production capacity and diversifying our mining portfolio to include silver, lead and zinc, to keep us on a path of sustainable growth,” says Chris Lim, CNMC’s CEO.
Shares in CNMC closed 0.5 cent lower at 22 cents on Tuesday.
