CNMC Goldmine Holdings Limited · SGX:5TP
CNMC Goldmine — Q1 2017 Earnings Presentation
33 slides from CNMC Goldmine's earnings presentation, May 15, 2017
Slide 1: CNMC Goldmine Holdings Limited 1Q2017 Results Briefing
CNMC Goldmine Holdings Limited 1Q2017 Results Briefing 15 May 2017 (These presentation slides are available on the Company’s corporate website www.cnmc.com.hk)
Slide 2: 1Q2017 Financial Highlights
1Q2017 Financial Highlights
Slide 3: Financial Highlights
Financial Highlights Income statement 1Q 2017 1Q 2016 Change Revenue (US$' million) 4.73 8.40 -43.7% Results from operating activities (US$' million) (0.02) 5.66 n.m. Net profit (US$' million) 0.07 5.61 -98.8% Net (loss)/profit (excluding FX Impact) (US$' million) (0.25) 3.65 n.m. Net profit margin
Slide 4: Revenue
Revenue Revenue fell 44%: Sales volume of fine gold, from 7,271 ounces to 3,670 ounces Partly offset by Average realized gold price, from US$1,156/ounce to US$1,288/ounce
Slide 5: Net Profit / (Loss)
Net Profit / (Loss) 1Q 2017 Net Cash outflow: US$2.32 million 1Q 2016 Net Cash inflow: US$2.08 million Net profit fell 98.8% to US$0.07 million due mainly to the lower ore grades, which resulted in lower sales volume of fine gold. Partly offset by the increase of average realised gold price.
Slide 6: Analysis Of All-In Costs And Margin
Analysis Of All-In Costs And Margin 1Q 2017 1Q 2016 Changes US$ / gold ounce sold % Mining related costs 647 318 103% Royalty and tribute expenses 174 86 102% Adjusted operating costs 821 404 103% General and administrative costs 125 49 155% Capital expenditure 7 21 -67% All-in sustaining costs 953
Slide 7: Summary Of All-In Costs And Margin
Summary Of All-In Costs And Margin All-in costs of production increased to US$983/ounce in 1Q2017 from US$487/ounce in 1Q2016, mainly due to lower sales volume of fine gold and higher general and administration costs.
Slide 8: Balance Sheet Highlights
40.00 35.00 30.00 9 25.00 8 5, 20.00 1) 2 15,00 10.00 5,00 4.08 3.20 1Q2014 22014 3Q2014 4Q2014 102015 202015 302015 4Q2015 1Q2016 202016 302016 4Q2016 102017 ME Current Assets (US'000) ll Current Liabilities (US$'000) xem(rrent Ratio (times) 9.00 8.00 7.0 6.00 5.00 4,00 3,00 2.00 1,00 CNMC
Slide 9: Cash Position
Cash Position • In 1Q2017, the net cash generated from operations was US$1.09 million compared to US$3.26 million in 1Q2016, mainly due to lower operating profit before working capital changes. • It has cash and cash equivalents of US$24.99 million at the end of 1Q2017, decreased by US$1.24 million
Slide 10: Milestones
Milestones
Slide 11: 2017 Milestones
2017 Milestones Date Milestone 20 January Completed due diligence for subscription of 51% of the shares in the enlarged share capital of Pulai Mining Sdn. Bhd. 20 January Entered into an assignment agreement with Kelantan State Economic Development Corporation (“KSEDC”) where KSEDC has agreed to ass
Slide 12: Outlook & Investment Merits
Outlook & Investment Merits
Slide 13: 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 14: Competitive Strengths
Competitive Strengths Strong Profitable gold Low all-in costs operating cash producer of production flow Exploring Corporate portfolio transparency expansion
Slide 15: Asset Portfolio
Asset Portfolio Production Asset: Brownfield Asset: Sokor Gold Project Pulai Mining (10km2) (38.4km2) Greenfield Asset: KelGold Mining (15.5km2 + 8.7km2) * *Still in the process of acquisition
Slide 16: Stock Data & Dividend
Stock Data & Dividend
Slide 17: Stock Data & Dividend
Stock Data & Dividend (SGX: 5TP) (Reuters: CNMC.SI) 11 May 2017 (Bloomberg: CNMC:SP) Price per share S$0.290 Market capitalisation S$118.11 Million Share issued 407.29 Million P/E ratio (Note) 18.71 Dividend Yield (YTD) 3.91% Note: Market price per share @ 11 May 2017 / Trailing earning per share (S
Slide 18: Shareholder Base and Analyst
Shareholder Base and Analyst Executive Directors: Key Professor Lin Xiang Xiong and Mr. Lim Kuoh Yang : 26.538% Mr. Choo Chee Kong : 12.980% Shareholders Analyst Coverage
Slide 19: Strategic Acquisition
Strategic Acquisition
Slide 20: Strategic Acquisitions
Strategic Acquisitions On 24 February 2017, CNMC completed the subscription of a 51% stake in Pulai Mining Sdn Bhd (“Pulai”) for a total consideration of RM13.8 million, which was funded through internal resources On 18 March 2017, CNMC entered into a shares sale agreement to acquire 100% stake
Slide 21: Location
Location Both Pulai’s and KelGold’s concession areas are located within State of Kelantan, Malaysia Approximately 100km 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 northwards throug
Slide 22: 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 23: About KelGold
About KelGold KelGold is a greenfield project with an exploration license spanning about 1,550ha (15.5km2) to explore and mine for gold, iron ore and other minerals. In the process of renewing its rights to explore gold and/or other minerals in an area approximately 870 ha (8.7km2) Concession
Slide 24: About CNMC
About CNMC
Slide 25: 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 26: Sokor Gold Field Project
Sokor Gold Field Project • Spanning an area of 10km², Sokor has 623,000 ounces of JORC-compliant gold resources (including ore reserves) as at 31 December 2016 • Achieved first gold pour on 21 July 2010 • Produced more than three metric tonnes of fine gold bullion since production commenced • Five i
Slide 27: Production Facilities
Production Facilities Three leaching yards with estimated leaching capacity of one 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 one million tonnes of ore per annu
Slide 28: 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 29: Fine-Gold Production
Fine-Gold Production • Commenced gold production in July 2010 and has since successfully produced more than 105,000 ounces (3.27 metric tonnes) of fine gold • Fine gold production decreased 12.2% to 27,403.98 ounces in FY2016 from 31,205.85 ounces in FY2015
Slide 30: JORC-Compliant Gold Resources
JORC-Compliant Gold Resources Table extracted from Sokor Project – updated Mineral Resources and Ore Reserves Estimate as at 31 December 2016. As at 31 December 2016, 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 31: Resources and Production
Resources and Production Gold Resources Versus Fine Gold Production
Slide 32: 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 33: 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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