Thursday, April 3rd, 2025

CNMC Goldmine Holdings – All That Glitters is Gold

SAC Capital | 13 March 2025
Soaring Profits: CNMC Goldmine’s Impressive Growth Trajectory
Expanding Production, Surging Profits
CNMC Goldmine Holdings, a leading gold mining company, has delivered an exceptional performance in its recent fiscal year, showcasing impressive revenue and profit growth. The company’s FY24 results were well within expectations, with revenue and net profit recording notable increases of 25% and 104% respectively. This strong performance was primarily driven by significantly higher base metal prices and improved production margins.
Elevating Gold Prices Boost Earnings
CNMC’s FY24 average realized gold price stood at a remarkable US$2,455 per ounce, a substantial increase from the US$1,960 per ounce achieved in FY23. This surge in gold prices, coupled with the company’s operational efficiency, has been a key factor in driving its profitability.
Capacity Expansion on the Horizon
CNMC’s Sokor Gold Project is poised to increase the group’s gold processing capacity by 60%, from the existing 500 tonnes per day to 800 tonnes per day. This expansion, which involves an investment of RM9 million funded through internal resources, is expected to be completed by the first half of 2025. While we have conservatively assumed that only 20% of this increased capacity will be recognized in FY25 and 40% in FY26, a further 10 percentage point increase could lift our FY25 net profit forecast by close to 10%.
Elevated Gold Prices Outlook
The relentless imposition of tariffs by the current U.S. administration is expected to exert upward pressure on global inflation, a scenario that typically bodes well for gold’s performance. Additionally, ongoing geopolitical tensions, including conflicts in Europe and the Middle East, could further enhance gold’s appeal as a safe-haven asset, supporting the company’s growth prospects.
Attractive Dividend Yields
Investors can look forward to attractive dividend yields of 5-8% over the next two fiscal years, as CNMC continues to deliver strong earnings growth. We maintain our BUY recommendation on the stock and have revised our price target to S$0.45 from the previous S$0.33, reflecting the company’s robust performance and promising outlook.

YE 31 Dec (US\$m) FY22 FY23 FY24 FY25F FY26F
Revenue 25.6 52.2 65.2 86.4 108.6
% chg -22.1% 103.8% 25.0% 32.5% 25.7%
EBIT 1.6 7.8 17.5 28.6 40.7
% chg -49.1% 405.2% 123.3% 63.3% 42.3%
EBIT margin 6.1% 15.0% 26.8% 33.1% 38.4%
Net profit 0.6 5.1 12.2 15.9 17.6
% chg -73.2% 818.9% 140.9% 30.4% 10.4%
Net margin 2.2% 9.7% 18.7% 18.4% 16.2%
EPS (S¢) 0.04 1.36 3.24 4.22 4.52
DPS (S¢) 0.20 0.90 1.40 1.69 2.40
Dividend yield 1.0% 4.6% 4.5% 5.5% 7.7%
PER (x) na 15 9.6 7.3 6.9
PB (x) 1.6 1.5 1.9 1.7 1.5

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