CNMC Goldmine Holdings Limited · SGX:5TP
CNMC Goldmine — Q3 2017 Earnings Presentation
41 slides from CNMC Goldmine's earnings presentation, Nov 10, 2017
Slide 1: CNMC Goldmine Holdings Limited 3Q2017 Results Briefing
CNMC Goldmine Holdings Limited 3Q2017 Results Briefing 10 November 2017 (These presentation slides are available on the Company’s corporate website www.cnmc.com.hk)
Slide 2: Completion of Carbon-in-Leach Plant
Completion of Carbon-in-Leach Plant
Slide 3: CIL Plant
CIL Plant • Announced construction of a carbon-in-leach (“CIL”) plant, with a daily processing capacity of estimated 500 tonnes of ore, at the Sokor mine on 15th May 2017 • Construction completed in 6 months and within the budget of RM25 million entirely funded by internal resources
Slide 4: CIL Plant
CIL Plant • Trial operation began on the morning of 6 November 2017
Slide 5: CIL Plant
CIL Plant
Slide 6: 3Q2017 Financial Highlights
3Q2017 Financial Highlights
Slide 7: Financial Highlights
Financial Highlights Income statement 3Q 2017 3Q 2016 Change 9M 2017 9M 2016 Change Revenue (US$' million) 4.71 8.45 -44.3% 14.29 29.48 -51.5% Results from operating activities (US$' million) (0.02) 2.24 n.m. 0.26 13.62 -98.1% Net profit (US$' million) 1.08 2.25 -52.0% 1.67 13.71 -87.8% Net profit (
Slide 8: Revenue
Revenue Revenue fell 44%: Sales volume of fine gold, from 6,285 ounces to 3,692 ounces Average realised gold price, from US$1,345/ounce to US$1,275/ounce
Slide 9: Net Profit
Net Profit 3Q 2017 Net Cash outflow: US$1.90 million 3Q 2016 Net Cash inflow: US$1.73 million Net profit fell 51.8% to US$1.08 million mainly due to lower sales volume of fine gold and decrease in average realised gold price.
Slide 10: Analysis Of All-In Costs And Margin
Analysis Of All-In Costs And Margin 3Q 2017 3Q 2016 Changes US$ / gold ounce sold % Mining related costs 615 399 54% Royalty and tribute expenses 171 96 78% Adjusted operating costs 786 495 59% General and administrative costs 145 95 53% Capital expenditure 11 6 83% All-in sustaining costs 942 596 5
Slide 11: Summary Of All-In Costs And Margin
Summary Of All-In Costs And Margin All-in costs of production increased to US$1,546/ounce in 3Q2017 from US$728/ounce in 3Q2016, mainly due to lower sales volume of fine gold and construction of the CIL plant.
Slide 12: Balance Sheet Highlights
40.00 35,00 30.00 o 25.00 8 © 20.00 Yn > 15.00 10.00 5.00 102014 2Q 2014 302014 4Q 2014 10.2015 202015 30.2015 402015 102016 2Q2016 302016 4Q 2016 1Q2017 202017 3Q2017 mam Current Assets (USS'000) © mmm Current Liabilities (US$'000) ==mCurrent Ratio (times) CNMC
Slide 13: Cash Position
Cash Position • In 3Q2017, net cash generated in operations was US$0.53 million compared to US$3.50 million in 3Q2016, mainly due to lower operating profit before working capital changes. • Cash and cash equivalents of US$20.15 million at end-3Q2017, down by US$13.34 million compared to US$33.49 mil
Slide 14: Milestones
Milestones
Slide 15: 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 16: 2017 Milestones
2017 Milestones Date Milestone 18 March Entered into share sale agreement for the proposed acquisition of the entire issued share capital of Kelgold Mining Sdn. Bhd. 4 April Gold resources amounted to 13.25 million tonnes at 1.5g/t gold as at 31 December 2016. This translates into 623,000 ounces of
Slide 17: Outlook & Investment Merits
Outlook & Investment Merits
Slide 18: 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 19: Competitive Strengths
Competitive Strengths Organic Growth Strong Profitable gold operating cash producer Potential flow Exploring Corporate portfolio transparency expansion
Slide 20: Asset Portfolio
Asset Portfolio Production Asset: Brownfield Asset: Sokor Gold Project Pulai Mining (10km2) (38.4km2) Greenfield Asset: KelGold Mining (15.5km2)
Slide 21: Exploration Progress
Exploration Progress
Slide 22: Exploration Progress
Exploration Progress Sokor Project 3Q2017 Focus of exploration in Sokor was on expanding resources of Rixen and Ketubong deposits. The department reevaluated previous workings and discovered the southern part of Rixen deposit to be still expandable, as the orebody is dipping deep into east. Seven
Slide 23: Exploration Progress
Exploration Progress Pulai Project 3Q 2017 • Nine drillholes were completed at the northern anomaly of iron ore prospect, based on previous workings and magnetic survey results. Some magnetite anomalies and outcrops are visible on the southern part. • A single drillhole was conducted at Peninsula ar
Slide 24: Exploration Progress
Exploration Progress Kelgold Project 3Q 2017 • Geochemistry soil sampling was completed in 3Q 2017. They covered an area of 1550ha in Jeli area. A total of 3201 samples were collected over a 60.4km distance. Gold anomaly zones were identified through this soil sampling program. • Based on the soil s
Slide 25: Stock Data & Dividend
Stock Data & Dividend
Slide 26: Stock Data & Dividend
Stock Data & Dividend (SGX: 5TP) (Reuters: CNMC.SI) 8 November 2017 (Bloomberg: CNMC:SP) Price per share S$0.285 Market capitalisation S$115.97 Million Share issued 406.91 Million P/E ratio (Note 1) Not applicable Dividend Yield (YTD) (Note 2) - Note1 : Market price per share @ 8 November 2017 / Tra
Slide 27: About CNMC
About CNMC
Slide 28: 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 29: 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 30: Production Facilities
Production Facilities Three leaching yards with estimated leaching capacity of one million tonnes of ore per annum 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 annum
Slide 31: Production Facilities
Production Facilities Ore agglomeration facility Upgraded existing vat leaching facility to estimated leaching capacity of 200,000 tonnes of ore per annum
Slide 32: Production Facilities
Production Facilities Brand-new CIL facility under trial operation This new facility is capable of processing an estimate of 500 tonnes of ore per day once fully operational
Slide 33: Fine-Gold Production
Fine-Gold Production • Commenced gold production in July 2010 and has since successfully produced more than 100,000 ounces (3 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 34: 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 35: Resources and Production
Resources and Production Gold Resources Versus Fine Gold Production
Slide 36: 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 16 May 2017, CNMC completed the acquisition of a 100% stake in Kelgold Mining S
Slide 37: Location
Location • Both Pulai’s and KelGold’s concession areas are located within State of Kelantan, Malaysia • Central Gold Belt of Malaysia lies on the eastern side of the Raub-Bentong suture, a regional scale structure that extends northwards through Thailand and Laos into China
Slide 38: 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 • Gold mineralization and iron ore discovered within the concession • Feldspar mine with area of 0.15km2 located approximately 5km South of Gua
Slide 39: 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 • 1/10,000 geochemistry soil sampling completed • Anomalies identified by trenching • Diamond drilling in progress
Slide 40: 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 41: 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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