CNMC Gold Mining

@ Life is a Game : No problem shouting huat ah or being proud of your counter going up. 

Fact is CNMC has been running up and your investment in this stock has been rewarded LOL

what price do u think would be overvalued for CNMC? or is this a case of "the best time to sell is never?"

@Bro Blue, if the company is able to maintain the low cost of gold production and continue to reward shareholders with increasing dividends which appear to be the current trend in the company, I may hold this counter for as long as possible until there is negative events like what you have mentioned on natural disasters or changes to mining concessions from the govt or recession etc.

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gold rally over liao, the initial run to safe haven gold is more or less over?

it seems concern over the general EU and global economy going down is starting to weigh on commodities/oil/gold as was the pattern during the GFC

yeah to me the rally is just a bonus. most importantly is the fundamental of the company remains solid. looking forward to their next report and dividends.

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hmm the analyst has re-rate the stock? seems like it has breakthrough the 0.48 target price set by the analyst.

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Sharing some figures of relevance relating to CNMC

A) Gold prices:

1. 2nd Jan - $1063. 30 Jan - $1117. Average for the month - $1090.

2. 1st Feb - $1183. 29 Feb - $1232. Average for the month - $1232

3. 2nd Mar - $1260. 30 Mar - $1231. Average for the month - $1245


4. 1st Apr - $1222. 29 Apr - $1292. Average for the month - $1192

5. 1st May -$1289. 31 May - $1213. Average for the month - $1251

6. 2nd June - $1244. 30 June - 1344. Average for the month - $1293

From above its clear that the price of gold has been on an uptrend for the
past 6 months. In recent days it has been trading higher at $1300 plus.
Oil peaked in 2011 at $1883 and bottom in 2015 at $1063.
Currrent uptrend is a reversal from the bottom.

B) All-in-cost.

1Q 2015 - US$616

2Q 2015 - US$517

3Q 2015 - US$564

4Q 2015 - US$555

1Q 2016 - US$487

It seems that the “all-in-cost" has been trending down.


C) Production level.

2012 - 4640 ounces

2013 - 12650 ounces

2014 - 26122 ounces

2015 - 31206 ounces

Latest announcement from the company on 4th July states that production for 2Q 2016

is at an all-time high. See quote below:
 
“CNMC Goldmine Holdings Limited's Sokor Gold Project has produced a record quarterly fine gold, gold bars that are refined to the purity of 99.99%, production of 9,807.37 ounces for the period ended 30 June 2016. This represents the highest production output on record for quarterly fine gold production since the start of the Company's gold production in July 2010. As compared to the previous record of 8,510.42 ounces for the period ended 31 December 2015, this reflects an increase of approximately 15.24 “
Shareinvestor Express


D) Environment favouring gold investment:

1. negative interest rate

2. global economic/political uncertainties

3. loss of confidence in paper money due to

excessive printing.


E)  CNMC situation:

CNMC is in an enviable position today as its low “all-in-cost" comes

with higher production level and higher gold prices. One can reasonably

expect them to report a good set of result this 2Q. Should gold price be

able to stay above the US$1300 for the rest of the year ... it’s going to be

an exceptionally good year for CNMC.

F)  My position:

I am quite heavily vested here though i am a small retail investor. I intend

to hold my position till after the 2Q results and after the company’s presentation

at the Asia Investment Forum 2016... 8th Scaling New Heights.

Note: above are my own assessments. It’s not an invitation to buy/sell.

Things can always go wrong in the market... gold price may suddenly tank,

operation cost may shot up, natural disaster may impair production etc. etc.

So do your own analysis n conclusion.

1) Real or realised potential already gold counter. No debt.
2) Mines in production - so far seems to have no problem with those hard figures reported either?
Small position for me that became not small already... (due to own unique personal situation)
3) Also, my experience in the stock market over the last more than 5 years :p ::: It is *very* hard to find existing good and the potentially good companies, so try not to sell at whatever price until they become no good or circumstances really change (something for which this point seems to me sufficiently "logical" to consider). I first came across the stock on Channel News Asia for this particular stock.

The pulai mining site in kelantan and dividend payout this year will determine if cnmc can be a multi bagger.

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(07-07-2016, 10:46 AM)Life is a game Wrote: The pulai mining site in kelantan and dividend payout this year will determine if cnmc can be a multi bagger.

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Actually I am quite surprised about the pulai mining site acquisition. If so profitable how come no other company is mining there already? Gold price has been doing ok for a few years already.

Reckon the recent run up is due to gold price and positive analyst coverage and of course market speculation (look at the massive volume now). Very high beta commodity play on gold, will have a steep drop should gold price go down for whatever reason.

-n v-

(07-07-2016, 11:09 AM)BlueKelah Wrote:

(07-07-2016, 10:46 AM)Life is a game Wrote: The pulai mining site in kelantan and dividend payout this year will determine if cnmc can be a multi bagger.

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Actually I am quite surprised about the pulai mining site acquisition. If so profitable how come no other company is mining there already? Gold price has been doing ok for a few years already.

Reckon the recent run up is due to gold price and positive analyst coverage and of course market speculation (look at the massive volume now). Very high beta commodity play on gold, will have a steep drop should gold price go down for whatever reason.

-n v-

I think there was mention that for past years there have been no significant results from the pulai mining site. so it's up to cnmc team of experts to perform the midas touch. good thing is alot of data available and cnmc team has track record with sokor project which is in the same state as pulai mine. Even if the pulai mine is only 50% viable, I believe the profits will be very attractive.

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