CNMC Goldmine Holdings Limited · SGX:5TP
CNMC Goldmine — Q2 2017 Earnings Presentation
36 slides from CNMC Goldmine's earnings presentation, Aug 14, 2017
Slide 1: CNMC Goldmine Holdings Limited 2Q2017 Results Briefing
CNMC Goldmine Holdings Limited 2Q2017 Results Briefing 14 August 2017 (These presentation slides are available on the Company’s corporate website www.cnmc.com.hk)
Slide 2: 2Q2017 Financial Highlights
2Q2017 Financial Highlights
Slide 3: Financial Highlights
Financial Highlights Income statement 2Q 2017 2Q 2016 Change 1H 2017 1H 2016 Change Revenue (US$' million) 4.86 12.62 -61.5% 9.59 21.03 -54.4% Results from operating activities (US$' million) 0.30 5.71 -94.7% 0.28 11.38 -97.5% Net profit (US$' million) 0.52 5.85 -91.1% 0.59 11.46 -94.9% Net (loss)/p
Slide 4: Revenue
Revenue Revenue fell 62%: Sales volume of fine gold, from 9,807 ounces to 3,836 ounces Average realized gold price, from US$1,287/ounce to US$1,267/ounce
Slide 5: Net Profit / (Loss)
Net Profit / (Loss) 2Q 2017 Net Cash outflow: US$3.87 million 2Q 2016 Net Cash inflow: US$6.85 million Net profit fell 91.1% to US$0.52 million mainly due to lower sales volume of fine gold. and decrease in average realised gold price.
Slide 6: Analysis Of All-In Costs And Margin
Analysis Of All-In Costs And Margin 2Q 2017 2Q 2016 Changes US$ / gold ounce sold % Mining related costs 625 315 98% Royalty and tribute expenses 166 94 77% Adjusted operating costs 791 409 93% General and administrative costs 147 53 177% Capital expenditure 22 16 38% All-in sustaining costs 960 478
Slide 7: Summary Of All-In Costs And Margin
Summary Of All-In Costs And Margin All-in costs of production increased to US$1,115/ounce in 2Q2017 from US$500/ounce in 2Q2016, mainly due to lower sales volume of fine gold and construction of carbon-in-leach plant.
Slide 8: Balance Sheet Highlights
40.00 35,00 30.00 o 25.00 8 § 20.00 “ > 15,00 10.00 5,00 1Q2014 20.2014 3Q2014 4Q2014 12015 2Q2015 32015 4Q2015 102016 202016 302016 4Q2016 102017 2Q2017 lil Current Assets (USS'000) mal Current Liabilities (USS'000) © <s¢mCurrent Ratio (times) CNMC
Slide 9: Cash Position
Cash Position • In 2Q2017, the net cash used in operations was US$1.14 million compared to net cash generated in operations US$9.00 million in 2Q2016, mainly due to lower operating profit before working capital changes. • It has cash and cash equivalents of US$21.73 million at the end of 2Q2017, dec
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: 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 13: Outlook & Investment Merits
Outlook & Investment Merits
Slide 14: 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 15: Competitive Strengths
Competitive Strengths Strong Profitable gold Low all-in costs operating cash producer of production flow Exploring Corporate portfolio transparency expansion
Slide 16: Asset Portfolio
Asset Portfolio Production Asset: Brownfield Asset: Sokor Gold Project Pulai Mining (10km2) (38.4km2) Greenfield Asset: KelGold Mining (15.5km2 + 8.7km2)
Slide 17: Exploration Progress
Exploration Progress
Slide 18: Exploration Progress - Sokor Project
Exploration Progress Sokor Project 2Q 2017 The exploration in Sokor area was focused in re-studying previous works done in hoping to extend the existing mineralization and searching for primary ore. The drillings were mainly done in New Discovery, Manson’s Lode and Ketubong deposits 26 drillhole
Slide 19: Exploration Progress - Pulai Project
Exploration Progress Pulai Project 2Q 2017 Magnetic survey was carried out in the iron deposit potential area. The survey commenced on 27th April and completed on 18th May. The results showed a few magnetic anomalies in the area 3 drillholes were completed in 2Q 2017 with a total footage of 353.
Slide 20: Exploration Progress - KelGold Project
Exploration Progress KelGold Project 2Q 2017 Since field reconnaissance from February 2017, geochemistry survey work was carried out in Jeli area. The soil sampling program commenced on 17th May and is currently ongoing. The soil sampling program is estimated to be completed before end of August 2
Slide 21: CIL Construction Progress
CIL Construction Progress
Slide 22: CIL Construction Progress
CIL Construction Progress • Announced the setting up of a 500 tonnes of ore a day carbon-in-leach (“CIL”) plant at the Sokor mine on 15th May 2017 in unaudited financial statement and dividend announcement for the first quarter ended 31 March 2017 • Photos of construction in progress as of first wee
Slide 23: CIL Construction Progress
CIL Construction Progress
Slide 24: Stock Data & Dividend
Stock Data & Dividend
Slide 25: Stock Data & Dividend
Stock Data & Dividend (SGX: 5TP) (Reuters: CNMC.SI) 10 August 2017 (Bloomberg: CNMC:SP) Price per share S$0.280 Market capitalisation S$114.04 Million Share issued 407.29 Million P/E ratio (Note 1) 254.55 Dividend Yield (YTD) (Note 2) - Note1 : Market price per share @ 10 August 2017 / Trailing earn
Slide 26: Shareholder Base and Analyst Coverage
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 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 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 31: 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 32: 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 33: 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 34: Resources and Production
Resources and Production Gold Resources Versus Fine Gold Production
Slide 35: 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 36: 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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