CNMC to stop all production activities, operations in Malaysia during extended lockdown

CNMC Goldmine Holdings said it will continue to halt all production activities and operations in Kelantan, Malaysia until Feb 4 in light of the second round of movement control order (MCO) restrictions - referred to as MCO 2.0 - imposed by the government in order to curb the rampant spread of the coronavirus.

This means the company's ore material transfer, quarrying and mineral mining activities will remain shut till the end of the MCO 2.0 period, or until the company receives approval to operate from Malaysia's National Security Council (NSC).

On Jan 18, the company said it had submitted an application to the NSC through the Ministry of International Trade and Industry for permission to operate during MCO 2.0.

Mining and quarrying sectors are not categorised as essential services which are allowed under the MCO 2.0 restrictions.

CNMC was also affected by the first round of MCO restrictions imposed by the Malaysian government which were then extended following the rising number of Covid-19 cases.

The company said it is unable to quantify or determine the extent of the financial impact of MCO 2.0 on its earnings per share and net asset value per share for the financial year ending December 2021.

The board of directors said it will continue to monitor the evolving situation, and will make appropriate announcements as and when there are material developments on the matter.

Shares in CNMC closed at S$0.26 on Monday, down 3.7 per cent or S$0.01.