SINGAPORE (May 17): Phillip Capital has upgraded CNMC Goldmine Holdings to “buy” with a higher target price of 42 cents on expectations of a strong rebound for its production and earnings this year.
“The first gold pour from [CNMC’s carbon-in-leach (CIL) plant] delivered a substantial improvement in production,” says analyst Chen Guangzhi in a report on Thursday.
Due to an expected substantial improvement from the CIL plant which will be operational in 2Q18, the brokerage is raising its earnings per share (EPS) forecasts for FY18 and FY19 to 1.9 US cents and 2.7 US cents, respectively.
See: CNMC Goldmine's 1Q earnings surge ninefold to $0.71 mil
See: 'Business is as usual' for CNMC, says CEO Chris, after Pakatan Harapan forms Federal government