SINGAPORE (Nov 12): CNMC Goldmine Holdings reported earnings of US$2.0 million ($2.7 million) for 3Q19 ended September – an eight-fold increase from the US$235,611 profits posted in the previous year. 

This was the Catalist-listed gold producer’s highest quarterly profit so far this year and brings its earnings for the first nine months of 2019 to US$4.2 million, surpassing its full-year earnings of US$1.68 million for 2018. 

Earnings per share for the quarter stood at 0.49 US cent, an increase from 0.06 US cent for the corresponding quarter last year. 

In its earnings call on Tuesday morning, the group said this surge is due to gold bars being sold at higher prices as well as the reversal of tax provisions and absence of listing expenses. 

The group said it sold gold bars at an average price of US$1,494.95 per ounce compared with US$1,205.02 in 2018's third quarter.

CNMC also noted that the average realised gold price came in at US$1494.95 per ounce, 24.1% higher compared to US$1,205.02 per ounce back in 3Q18. 

Revenue for the quarter, however, slid by 3.6% to US$11.1 million from US$11. 5 million in the preceding year. 

This was attributable to a 22.3% drop in production volume due to the delay in the commencement of high-grade gold ore extraction from underground mining, as well as a 19.4% spike in all-in production costs per ounce of gold. 

As at Sept 30, CNMC’s cash and cash equivalents stood at US$16.7 million. 

The group has also declared an interim tax-exempt dividend of $0.0020 per ordinary share payable on 20 December. Comparatively, CNMC did not declare any dividend for 3Q18. 

In its outlook statement, the group said that will continue to push ahead with plans to increase gold production, expand its income streams and manage expenses. 

CNMC also expects to commence extraction of high-grade gold ore in the first quarter of 2020, after it resolves certain technical issues recently encountered in underground mining involving weak rock masses and the discovery of water underground. 

CNMC CEO Chris Lim says, “Our financial performance so far this year has been encouraging. We are doubling down on efforts to ensure our expansion plans are executed well so that we can sustain the growth momentum.”

As at 12.53pm, shares in CNMC Goldmine Holdings are trading 0.5 cent lower, or 1.9% down, at 26.5 US cents.