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CNMC Goldmine Q3 profit slips 4% on stop-work order

Monday, November 7, 2016 - 19:04

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A TEMPORARY stop-work order eroded results for CNMC Goldmine Holdings (CNMC) in its third quarter.

A TEMPORARY stop-work order eroded results for CNMC Goldmine Holdings (CNMC) in its third quarter.

Net profit shrank 3.6 per cent to S$1.76 million from the previous year, the group said in a Singapore Exchange filing on Monday evening.

For the three months ended Sept 30, revenue fell 15 per cent to S$8.45 million from the previous year. The slide in revenue was due to the seven days that the mine wasn't operating due to the stop-work order given by the authorities to review its application for a large-scale operation status.

After the stop-work order was lifted on July 25, the firm took another 14 days to restart the entire production process, it said.

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As a result, output fell 24 per cent to 6,284.7 ounces of fine gold in the third quarter, though this was partially offset by a 12 per cent rise in the average selling price of gold to US$1,345.31 an ounce.

Q3 earnings per share dipped to 0.59 Singapore cents from 0.63 Singapore cents in the preceding year.

CNMC CEO Chris Lim said that operations are back to normal and the firm remains focused on production and managing costs.

"Still, all-in costs for the final three months of this year are expected to go up further as we recognise the rest of the one-time processing fee for the lease extension," he added.

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