pine wrote: Gold price at US$1,230 currently -- very profitable still for CNMC as its all-in sustaining costs is very low at US$585 per ounce
Last I checked, gold price was Us$1,200/oz. Very good price for CNMC, which is why it is flush with profits.
Balance sheets = CNMC has US$12.3 m cash on hand (up from Us$3 m a year ago), and minimal debt! CNMC pays out dividends,,, small still at 1.9% historical yield. but ... it should pay more going fwd. hopefully
Indeed cnmc is significantly undervalued. it has a low all in cost of 700 plus versus the average all in cost for all miners around the world of 1100-1200. all in cost accounts for all cost(including capex) except for tax and interests. And since cnmc has a tax exemption and pays no tax, and has negligible debt. all in cost basically represent all its necessary cost. with gold price at 1200. it has big fat margins. now lets not forget that production is increasing, reserves may increase, and importantly since company is a cash cow, it may acquire other assets/ pay out divideds.
i think the current low price is because the of negative sentiment surrounding certain other gold stocks on the exchange. it will take time for sentiment to recover and for market participants to understand that the company is a solid company with good fundamentals, churning out profits and not a fly by night company. in the mean time smart money are already accumulating the stock. after all its the only listed (solid fundamentals) sgx company that offers exposure to gold.
Coming to end-2015, CNMC still not appreciated. Share price dipped a bit more ... 19.1 cents is a steal. I see Nextinsight going to cover again this counter. Hopefully, CNMC can continue to raise the dividend payout.