Low ore grades continue to drag on CNMC's Q2 profit

Singapore

PLAGUED by low ore grades and a decline in production since the fourth quarter of 2016, CNMC Goldmine Holdings on Monday reported an 89.8 per cent plunge in its net profit for the second quarter to US$478,000.

CNMC, which is the first Catalist-listed gold mining company on Singapore Exchange, is bullish on gold prices and is depending on its newest and upcoming carbon-in-leach (CIL) plant in Kelantan, Malaysia to accumulate enough high-grade ore to bring gold production level back up.

Earnings per share for the three months ended June 30, 2017, stood at 0.12 US cent, down from 1.16 US cents the year before. Revenue for Q2 2017 was US$4.9 million, down 61.5 per cent from a year ago, as it was impacted by a drop in sales volume of fine gold, which fell from 9,807 ounces in Q2 2016 to 3,836 ounces in Q2 2017. Comparing the same periods, the average realised gold price decreased from US$1,287 per ounce to US$1,267 per oun…