CNMC Goldmine Holdings has reported earnings of US$1.68 million for its 2HFY2021 ended Dec 2021, reversing from a loss of US$2.63 million incurred in the year earlier period.
For the full year, the company reported earnings of US$1.72 million, versus a loss of US$3.54 million reported for FY2020.
Revenue for FY2021 increased by 37.7% over FY2020 to reach US$32.9 million.
The company attributes the better numbers to a near 40% increase in volume of gold produced, as well as better prices that was fetched.
In addition, the company’s earnings was boosted from the absence of a non-cash impairment it had to recognise in the previous year. Production cost, which dropped by 10%, helped as well.
The company plans to pay a final dividend of 0.2 cent a share, plus a special dividend of 0.6 cent, bringing FY2021 total to 0.8 cent, which is a record payout ratio of 143%.The company has started building two additional underground mining facility at its Sokor mine which can potentially double its processing capacity to 1,000 tonnes.
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“The Covid-19 pandemic is still a concern but we have reasons to be hopeful as Malaysia is now in a better position to deal with it than a year or two ago,” says CEO Chris Lim.
“Having weathered multiple lockdowns in Kelantan and seemingly having finally turned the corner, we are taking steps to increase gold production and to expand our portfolio of mining assets to include silver, lead and zinc,” he adds.
CNMC closed Feb 24 at 23 cents, up 4.55% for the day and up 9.52% year to date.
