SINGAPORE (May 15): CNMC Goldmine reported a 98.8% fall in 1Q17 earnings to US$54,834 ($77,000) from US$4.6 million a year ago because of the lower ore grades as forewarned in its profit guidance.
As a result, CNMC also announced it is building its third processing plant at its flagship Sokor gold field in Malaysia’s Kelantan state in a major effort to enhance gold recovery and boost production.
While CNMC was able to sell its gold bars at a higher price of US$1,287.62 per ounce in 1Q17, compared to US$1,155.76 an ounce in 1Q16, the reduced output and sales volume brought overall revenue down by 43.8% to US$4.73 million for 1Q 2017 drove up its all-in production costs in 1Q2017 to US$983 per ounce from US$487 per ounce a year earlier.
The company’s gold output and sales volume declined 49.5% to 3,669.90 ounces in 1Q17 from the same period last year.
Net profit came in at US$68,776 for 1Q17, compared to US$5.61 million for 1Q16.
Earnings per share for 1Q17 came in at 0.01 US cent, compared to 1.12 US cents for 1Q16. Net asset value per share inched up to 9.75 US cents as at March from 9.73 US cents as at end December.
Shares of CNMC closed 3 cents higher at 31 cents.