Update on – CNMC GOLDMINE (5TP)

The last post on CNMC Goldmine was done on 14 Apr 17 and we felt that it would be good to revisit on the stock.

 

  1. Gold price have been going up steadily since the “bottom out” seen in 2017 (refer to analysis below).
  2. CNMC on the other hand had a drawdown in entire 2017 due to the issue of low ore grade.
  3. Outlook: Fundamental of CNMC remained sound on the following points:
    1. Licences in Sokor have been renewed to 2030
    2. Carbon in leech (CIL) plant have been commercialized in end May 2018 to improve on yield
    3. CNMC would be monetizing other in 2018/2019
    4. Potential of HK listing by end 2018 to unlock share value
    5. Latest quarterly results indicated that CNMC is now back on track to deliver profits

In addition to reading the financials, our team has attended the AGM as well as the quarterly results briefing and below are the details:

  1. Kelgold is in the process of going into production mode
  2. Area of Pulai is huge compared to Sokor, hence more time is expected for gestation of business
  3. HK listing have been submitted. Once approved CNMC would allow existing shareholders to transfer over to HK without additional cost
  4. To unlock value for Silver and Zinc as well (funds have been set aside for this)

Below is the Weekly trend of Gold – we can see that it is going to be a dip on the uptrend.

Immediate price range (between 1220-1250) where a strong support is there for a set up to rebound up. This set up is bullish in nature.

 

Below is the snapshot of InvestWhizz automated analytics: