CNMC Gold Mining

(14-10-2014, 03:52 PM)swn Wrote:

(14-10-2014, 03:00 PM)CityFarmer Wrote:

(14-10-2014, 02:21 PM)swn Wrote:

(04-06-2014, 10:00 PM)Disillusioned_12 Wrote: http://infopub.sgx.com/FileOpen/Drillspa...eID=300183

Looks like CNMC achieved another breakthrough - this time in exploration i/o production. Im not an expert on this front - does anyone know anything about this new drillspace optimiser technology they acquired and can it really lower their cost significantly? I will adopt a wait and see approach since Im not too familiar with this but appreciate if fellow investors can share what they know

Gold prices moving up but not the share price but I think this is still good for the company as more profit will be made when the company sell its gold products at higher prices.

Gold price moving up? Didn't the price moving down?

I looked at bloomberg spot gold. It was below 1200 on 3 Oct but it is 1233 today!

easier trading bullion than a small cap gold miner...

True... also can pawn when necessary.

How sensitive is CNMC to Gold Price fluctuations?
PGL[/size][/font]

When u buy gold? U need not worry it will go to zero. Gold can never be zero like your stock which can disappear, however big it is, like Lehman bros n Bear Stearns. Buy physical gold.

(03-11-2014, 06:02 PM)PGL Wrote: How sensitive is CNMC to Gold Price fluctuations?
PGL[/size][/font]

Hi PGL, unfortunately this is beyond my knowledge.

Results out today. Decent but due to lower gold price the share price has taken a beating again. The cash balance has increased quite significantly with no change in share capital. Since growth is restricted due to global gold price, the next sensible thing for the company is to reward shareholders with dividends to keep confidence going. Let's see if the company would be aligned with my thoughts haha.

Dear buddies, do you have any analyst coverage report for CNMC? Can share?
I am unable to find any from the internet. Many thanks.

Maybe it's time to take another look at CNMC.

Gold is up 15% from the lows and running above the 12-month average.

The gold price is the key driver of CNMC revenues. With costs mostly fixed (and falling, in part due to MYR devaluation), margins/profits/cashflow will be going up in the current quarter.

Enterprise value is 60m SGD and FCF above 10m/year (at lower gold prices than current), cash balance of 26m and no debt.

Results (for the year ending in December) coming up on the 23rd of February (after trading hours).

Is this company worth investing into, given:
(1) The uptrend in the gold price?
(2) The excess cash over debt (net cash position)?
Thoughts?

In SGD mil 2013 2014 Trailing 12 months 2015
Revenue 23.1 46.2 51.4
Gross profit 16.3 34.8 40.2
EBITDA 10.3 26.0 30.3
PAT 3.7 17.0 14.7
Capex 7.2 6.9 6.3
EBITDA - Capex 3.1 19.1 24.0

As at 11 February (In SGD mil)
Market capitalisation 85.3
Cash & STI 25.5
Debt (0.2)
Minority interest (6.1)
Enterprise value 66.1

Based on current market capitalisation
T12M EV/EBITDA 2.2
T12M P/E 5.8
T12M P/BV 2.0

I am vested in this company but more towards balancing my portfolio. don't want to hold physical gold also. but there is a risk also. physical gold is yours to keep but never a company.

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