CNMC Goldmine doubles Q3 profit, revenue rises nearly 60%

CNMC Goldmine Holdings doubled net profit to US$3.38 million for the third quarter ended Sept 30, up from US$1.67 million, as revenue recorded double-digit growth.

Revenue was up 59.2 per cent to US$10.05 million due to a significant increase in the production and sales volume of fine gold in Q3 2014. Earnings per share worked out to 0.83 US cent, roughly doubling from 0.41 US cent in the corresponding quarter a year prior.

The group said that production volume of fine gold leapt 61 per cent to 7667.17 ounces in Q3 2014 as it began production in its new facilities, while its three leaching yards saw higher productivity.

Operating profit was up 57.2 per cent to US$4.38 million, on the back of higher revenue.

"Lower gold prices are likely to affect the group's profitability. However, the group's relatively low all-in costs of below US$700 per ounce will likely mitigate the lower gold prices impact," it said, commenting on future outlook. It also said that it doesn't anticipate profitability to be significantly impacted by the levying of a goods and service tax in Malaysia.