Not fully appreciated by the market is the fact that CNMC is enjoying solid profit margins. People focusing on gold price having turned down after a great run between 2000-2012 --- but overlook the fact that CNMC makes something like 50% margin!
Sure, gold equity values everywhere have corrected sharply . This is a window of opportunity for CNMC as it harvests its Kelantan mine on low costs.
All the gold miners stock prices in the world has jumped from 20% to 50%.. Why?
Because the smart money are buying for:
3.stock market risk
4.flight to safety
5.negative interest rates risk
6.China is beefing up its gold reserves by selling its US treasuries at record level-the fear of USD collapse. USD is not backed by gold but oil. aka petrol-dollar
7.India is the second dominant buyer for the precious metal
9.gold price has broken the downward channel
10.finally, I am betting big on hyperinflation. The world is currently going thru deflation. The time will come when energy and commodity companies go belly up. Once that happens, there will be a huge shortage supply of the essentials which will ultimately send the prices going vertical.
Also, silver-a by-product of the company- has a huge demand/supply imbalance as its used for EVs, solar panels, transmission lines, and your mobile phones. Soon, it will rocket soon as a lot of silver miners has cut production due to low prices. You can google silver production to find out.
Stock is currently trading at 5x PE and 2.6% yield with no debt and net cash! The company has been increasing its dividends for the last 3 years.
Last call to buy before its too late. I am vested. Do your due diligence.