CNMC Goldmine Holdings Limited · SGX:5TP
CNMC Goldmine — Q3 2016 Earnings Presentation
38 slides from CNMC Goldmine's earnings presentation, Nov 7, 2016
Slide 1: CNMC Goldmine Holdings Limited 3Q2016 Results Briefing
CNMC Goldmine Holdings Limited 3Q2016 Results Briefing 7 November 2016 (These presentation slides are available on the Company’s corporate website www.cnmc.com.hk)
Slide 2: Financial Highlights
Financial Highlights
Slide 3: Financial Highlights
Financial Highlights 3Q 2016 3Q 2015 Change 9M 2016 9M 2015 Change Revenue (US$' million) 8.45 9.95 -15.1% 29.48 27.17 8.5% Results from operating activities (US$' million) 2.24 2.33 -3.9% 13.62 9.38 45.2% Net profit (US$' million) 2.25 2.38 -5.5% 13.71 9.35 46.6% Net profit (excluding FX Impact) (U
Slide 4: Revenue
Revenue Revenue fell 15%: Sales volume of fine gold, from 8,305 ounces to 6,285 ounces Partly offset by Average realized gold price, from US$1,198/ounce to US$1,345/ounce
Slide 5: Net Profit
Net Profit 3Q 2016 Net Cash inflow: US$1.73 million 3Q 2015 Net Cash inflow: US$4.98 million Net profit fell 6% to US$2.25 million due mainly to the SWO, which resulted in lower sales of fine gold, higher operating costs in relation to the reinstatement of production after SWO lifted and recognition
Slide 6: Analysis Of All-In Costs And Margin
Analysis Of All-In Costs And Margin 3Q 2016 3Q 2015 Changes US$ / gold ounce sold % Mining related costs 399 283 41% Royalty and tribute expenses 96 89 8% Adjusted operating costs 495 372 33% General and administrative costs 95 71 34% Capital expenditure 6 45 -87% All-in sustaining costs 596 488 22%
Slide 7: Summary Of All-In Costs And Margin
Summary Of All-In Costs And Margin All-in costs of production increased to US$728/ounce in 3Q2016 from US$564/ounce in 3Q2015, mainly due to lower sales of fine gold, increase in mining related costs and partial payment for 21-year mining lease extension.
Slide 8: Balance Sheet Highlights
4000 bl a3 9,00 35,00 30.00 9 25.00 8 5, 20.00 1) 2 15,00 10.00 5,00 4Q2013 102014 202014 3.2014 40.2014 10.2015 202015 32015 40.2015 102016 202016 302016 MN Current Assets (US$'000) Mmm Current Liabilities (US$'000) © =¢==Current Ratio (times) CNMC
Slide 9: Cash Position
Cash Position • In 3Q2016, the company generated net cash of US$3.50 million from operations, down from US$6.84 million in 3Q2015 mainly due to lower operating profit before working capital changes. • It had cash and cash equivalents of US$33.49 million at the end of the quarter, almost twice as muc
Slide 10: 2016 Milestones
2016 Milestones
Slide 11: 2016 Milestones
2016 Milestones Date Milestone 20 October CNMC appointed Academician Zhao Pengda, Professor Xiao Rong Ge, Dato Nik Kamaruddin Ismail and Dato’ Sri Nik Othman Nik Hussein as advisors for a period of 12 months to provide strategic guidance and counsel to the Executive Directors on matters relating to
Slide 12: 2016 Milestones
2016 Milestones Date Milestone 23 August CNMC gets regulatory nod for extension of mining lease for Sokor Gold Field until 2034 4 July Produced 9,807.37 ounces of fine gold in 2Q2016, the most in any quarter since gold production started in 2010 28 June Execution of Non-Binding Letter of Intent in r
Slide 13: 2016 Milestones
2016 Milestones Date Milestone 31 March Gold resources amounted to 13.83 million tonnes at 1.4g/t gold as at 31 December 2015. This translates into 618,000 ounces of contained gold, up 22% compared to 31 December 2014 7 January Produced record 31,205.85 ounces of fine gold in FY2015
Slide 14: Outlook & Investment Merits
Outlook & Investment Merits
Slide 15: Outlook
Outlook • Continue Production Expansion: - Increase leaching capacity and enhance gold recovery process with the aim of increasing gold production • Minimise Cost: - Further streamline production process to reduce wastage of raw material - Leverage economies of scale from increased production capaci
Slide 16: Competitive Strengths
Competitive Strengths Strong Profitable gold Low all-in costs operating cash producer of production flow Exploring Corporate portfolio transparency expansion
Slide 17: Stock Data & Dividend
Stock Data & Dividend
Slide 18: Stock Data & Dividend
Stock Data & Dividend (SGX: 5TP) (Reuters: CNMC.SI) 4 November 2016 (Bloomberg: CNMC:SP) Price per share S$0.54 Market capitalisation S$ 219.94 Million Share issued 407.29 Million P/E ratio (Note) 10.93 Dividend Yield (YTD) 1.79% Note: Market price per share @ 4 November 2016 / Trailing earning per
Slide 19: Stock Data & Dividend (Cont'd)
Stock Data & Dividend (Cont’d) Source: https://sg.finance.yahoo.com/echarts?s=5TP.SI
Slide 20: Shareholder Base and Analyst
Shareholder Base and Analyst Executive Directors: Professor Lin Xiang Xiong and Mr. Lim Kuoh Yang : 26.538% Key Mr. Choo Chee Kong : 12.980% Shareholders Substantial Shareholder: Mr. Ng Eng Tiong : 9.762% Analyst Coverage
Slide 21: Pulai Mining - Strategic Acquisition
Pulai Mining - Strategic Acquisition
Slide 22: Strategic Acquisition
Strategic Acquisition On 25 August 2016, CNMC signed a conditional Share Subscription Agreement to acquire a 51% stake in Pulai Mining Sdn Bhd (“Pulai”) Existing shareholders of Pulai are: • Sumberjaya Ventures Sdn Bhd, • Centurion Resources Pte Ltd, • Kelstone Sdn Bhd, • CM Strategic Holdings P
Slide 23: About Pulai
About Pulai Pulai Mining is a brownfield project with 11 licenses spanning about 3,841.3ha (38.4km2) to explore and mine for gold, iron ore and feldspar From March 2011 to May 2013, it produced and sold over 260kg of gold with a value close to RM38 million from alluvial mining Project has neve
Slide 24: Location
Location Pulai’s concession areas are located approximately 17km Southwest of GuaMusang town, Kelantan, Malaysia Approximately 105km from our Sokor Gold Field Project Central Gold Belt of Malaysia lies on the eastern side of the Raub-Bentong suture, a regional scale structure that extends nort
Slide 25: Previous Exploration Activities
Previous Exploration Activities Whole EL radar (LIDAR) topography Soil geochemical survey of 43.41km2 Induced polarization surface survey area of 7.5km2 Simple geological survey and sampling 52 drill holes - total length of 5,715.6m 12 channeling sampling
Slide 26: Previous Exploration Activities
Previous Exploration Activities From October 2014 to April 2015, exploration team from China Railway Resources Exploration Ltd carried out geological mapping, geochemical anomaly inspection, drilling core verification, trenching and comprehensive study of regional mineralization characteristics
Slide 27: Potential Alluvial Production
Potential Alluvial Production Review of previous gold production data collected by previous consultant concluded there was evidence to support the interpretation of possible new gold inputs
Slide 28: Potential Iron Ore Mineralization
Potential Iron Ore Mineralization Geomagnetic studies delineated 5 anomaly zones Total of 27 RC drillholes were completed in all 5 anomaly zones About 10,000 tonnes of ore were extracted with grade ranging from 50% to 55% Fe
Slide 29: About CNMC
About CNMC
Slide 30: About CNMC
About CNMC • Involved in exploration and mining of gold, and processing of mined ore into gold dores • Commenced operations in 2007; first Catalist-listed gold producer on SGX-ST (listed in October 2011) • Current flagship project – Sokor Gold Field in Kelantan, Malaysia • CNMC founded by Prof Lin X
Slide 31: Sokor Gold Field Project
Sokor Gold Field Project • Spanning an area of 10km², Sokor had 618,000 ounces of JORC-compliant gold resources (including ore reserves) as at 31 December 2015 • Achieved first gold pour on 21 July 2010 • Produced more than two metric tonnes of fine gold bullion since production commenced • 4 identi
Slide 32: Production Facilities
Production Facilities Three leaching yards with estimated leaching capacity of 1 million tonnes of ore per annum Brand-new gold de-absorption plant comprising gold de-absorption, active carbon re-generation and smelting systems to support leaching capacity of 1 million tonnes of ore per annum
Slide 33: Production Facilities
Production Facilities Brand-new ore agglomeration facility in construction Upgraded existing vat leaching facility to estimated leaching capacity of 200,000 tonnes of ore per annum
Slide 34: Fine-Gold Production
Fine-Gold Production • Commenced gold production in July 2010 and has since successfully produced more than 85,000 ounces (2.64 metric tonnes) of fine gold • Over the comparative periods, fine gold production increased 19.46% to 31,205.85 ounces in FY2015 from 26,122.08 ounces in FY2014
Slide 35: JORC-Compliant Gold Resources
JORC-Compliant Gold Resources Table extracted from Sokor Project – updated Mineral Resources and Ore Reserves Estimate as at 31 December 2015. As at 31 December 2015, Total Measured, Indicated and Inferred gold Mineral Resources for the Sokor Gold Project (above a 0.3 g/t gold cut-off grade at Rixen
Slide 36: Resources and Production
Resources and Production Gold Resources Versus Fine Gold Production
Slide 37: Disclaimer
Disclaimer The materials used herein and this presentation (collectively, the “Presentation”) have been prepared by CNMC Goldmine Holdings Limited (“CNMC”) solely for use at the presentation to be made to qualified investors and investment professionals. By viewing the Presentation, or by reading th
Slide 38: Thank You
Thank You Media Media and and Investor Investor Contact Contact Information: Information: WeR1 WeR1 Consultants Consultants PtePte Ltd Ltd 33 Phillip Phillip Street, Street, #12-01 #12-01 Royal Royal Group Group Building, Building, Singapore Singapore 048693 048693 Tel: Tel: (65) (65) 67374844 67374
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