CNMC Gold Mining

[Life is a game]

hopefully they increase dividends payout to remove some of the doubts.

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[Luca_Brasi]

hopefully they increase dividends payout to remove some of the doubts.

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Dividend has been raised 40% for FY2015 with two tax exempt dividends to be approved at the AGM next week.

As per the FY2015 annual report, they commit to return up to 30% Net Profit in dividends to shareholders:

"Dividend Policy On the 11 August 2015, the Company declared 1st interim one-tier tax exempt dividend of S$0.0018 per ordinary share in respect of FY2015 and the payment of the interim dividend was made on 8 September 2015 to all the shareholders. 

On the 9 December 2015, the Company declared 2nd interim one-tier tax exempt dividend of S$0.0018 per ordinary share in respect of FY2015 and the payment of the interim dividend was made on 20 January 2016 to all the shareholders. 

To further reward shareholders, the Company is proposing a fi nal dividend of S$0.0018 per share and a special dividend of S$0.00405 per share for FY2015, to be approved by shareholders at the forthcoming annual general meeting. 

Notwithstanding the above, the Company aspires to pay dividends of up to 30% of its net profi ts for each fi nancial year going forward, based on the recommendations of the Board and subject to the factors described below."

[Luca_Brasi]

A few things i would have questions about this company :

1)Sounds funny that at this day and age someone would go into gold mining without getting experts in right from the start. When they first started prospecting they got the Aussie perth company to do the initial prospecting. so why not get further advice from the experts in australia when they first started extraction to maximize profits? Isn't that what a normal business manager would do? and the quarterly report says they expect 1 million tonnes of gold capacity by year end, where will that gold be coming from, recycled ore?

2) annual report says minimal environmental impact on the sokor river as reported by an independent 3rd party malaysian firm. sounds fishy, why? unless the river is already polluted heavily, it is unlikely silting from mines have minimal impact on the fresh water fish as clear water in streams is critical for egg laying and hatching. and i have gone to the forest rivers in west malaysian rainforest to do fish studies. even simple logging causes very bad erosion and wipes out a lot of bigger fish species.

3) in the latest quarterly report they included a lot of technical info on the drilling which is the first report i have read with so much technical stuff. Are they trying to confuse shareholders?

4) why are they trying to diversify into other metals? Should they not have included the testing for all these other metals in their initial survey and decided on what to mine? from what i know some ores need to be dry mined, not wet mined like gold and tin.

Valuation wise this company could only be valued on cashflow and earnings basis as NAV is way below the current price.  



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Still valid!

Hmmm not really valid IMO.

Annual report with too many drilling technical details ?? Read large gold miners annual reports like Barrick, you'll be more confused. It's actually a positive sign, they're very transparent. 

Diversify into new metals ?? They can extract other commodities in the same mine...why not try to increase revenue and profits ? Specially now that silver is also breaking out.

Other points are pure speculations: KPMG is their financial auditor (one of Big 4 accounting firm) . Read auditor opinion in annual report = all good. Their gold resources are audited every year by a reputable 3rd party company based in Australia.

[BlueKelah]

Hi bratzz and Luca, forgot about my old post here, thanks for adding your views.

But this one not for me

I had expected it to track gold more closely though instead of jumping here and there.

Maybe can use as a gold holdings instead of other gold products

There is an offchance to be acquired by Chinese company too.

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[Life is a game]

seems like the trust on paper money is losing traction and gold is gaining new love haha.

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[BlueKelah]

Haha sgx only one gold miner and everyone piling into it. Gold only up 1% leh today.

What if no brexit? Stock price will crash back to 30c again.

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[Life is a game]

no Brexit. paper money also cannot trust too much cos helicopter money and those digital coins coming. one fine day really banana.

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[CityFarmer]

no Brexit. paper money also cannot trust too much cos helicopter money and those digital coins coming. one fine day really banana.

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No Brexit? The poll is next week, IIRC ?

[Life is a game]

no Brexit. paper money also cannot trust too much cos helicopter money and those digital coins coming. one fine day really banana.

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No Brexit? The poll is next week, IIRC ?

I mean even if no Brexit haha. sorry for the short cut.

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[BlueKelah]

Reducing to negative interest rates side effect is suppose to be hyperinflation. On the surface looks like there is not much inflation in global economies, but in reality, assets like property have already shown hyperinflation, just that they are not included in the consumer price indexes. 

IMHO should the day of reckoning really come, gold price is very likely to skyrocket together with most commodities which are traded in USD (Since commodities are traded in USD mainly)

There is possibly further upside for CNMC going into the Brexit vote. Buying some physical gold would be more fun, at least one will have a piece of gold you can hold in your hand and stroke and say "my precious"