$CNMC Goldmine(5TP.SI)$ 2 Target Price
CNMC is a pure-play gold producer operating the Sokor gold field in Kelantan, Malaysia.
--Growth Catalysts for CNMC Goldmine(5TP.SI)--
1. Expanded Production Capacity
CIL Plant upgrade completed in April 2025: Daily processing capacity nearly doubled from 500 tonnes to 800 tonnes per day. Gold output from the CIL plant jumped 65% in 2H2025 vs 2H2024. CNMC Goldmine earnings growth came from "diversification into base metals production and the expansion of the gold processing capacity, not simply from rising gold prices.
2. Underground Development & Higher-Grade Ore Discovery
New underground facility under construction at Sokor. Two new vertical shafts budgeted at US$12M, on track for completion in 2027. These aim to access higher-grade ore and boost production. Management notes >20 million tonnes of rock with ∼1.2 million ounces of gold in the Sokor concession, enough to sustain processing through the 2034 lease renewal.
3. Rising Gold Price Leverage
CNMC has “direct exposure” to spot gold prices with operating leverage — profits grow faster than revenue when gold rises. FY2025: Net profit up 326.5% to US$42M, revenue up 96.9% to US$128.4M. Gold sales were ∼75% of total revenue. Institutional forecasts see gold at US$4,700 - US$5,800/oz in 2026. Average selling price in H1 2025 was already US$3,197/oz.
4. Resource Growth & Mine Life Extension
Gold mineral resources for CIL processing rose 27% to 1,157,000 ounces. Ore reserves up 9% YoY in contained gold, extending mine life. Exploration focus on Ulu Sokor concession prioritizes near-term production over greenfield risk.
5. Mainboard Transfer = Wider Investor Base
Approved to transfer from Catalist to SGX Mainboard effective on 28-Aug-2026. Such move is expected to access larger, more diverse investor base including institutions. Get broader analyst coverage and better liquidity. Raise corporate profile to fund next phase of underground development.
6. Strong Balance Sheet + Dividends
Net cash US$62.56M, debt/equity 0.02.
FY2025 total dividend 5.0 cents/share = 37% payout ratio.
1H2026 interim dividend S$0.02 paid 11-Sep-2026.
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- NewmanGray·09-02 09:22500 to 800 tpd is the part that matters, and 65% output growth says execution is real, not just gold doing the heavy lifting1Report