CNMC issues profit warning; Kelantan unit gets approval to operate in MCO 2.0

CATALIST-LISTED CNMC Goldmine Holdings expects to report a net loss for the year ended Dec 31, after a net profit the previous year, as Malaysia's Covid-19 measures restricted its activities.

In a regulatory filing on Saturday night, the company said it recorded lower gold output after having had to stop operations during Malaysia's Movement Control Order (MCO) from March 18 to May 5.

The MCO also delayed the return of its underground mining team from China, resulting in the resumption of underground infrastructure construction and mining only in the fourth quarter of 2020.

There were also impairment losses to be provided for on certain exploration and evaluation assets, largely in view of uncertainties around the operations of 51 per cent owned subsidiary CNMC Pulai Mining.

The expectation of a net loss is based on a preliminary review of unaudited management accounts. The finalised results will be released by Feb 28.

The company advised shareholders and investors to exercise caution when dealing in its shares.

Separately, CNMC announced that its subsidiary CMNM Mining Group was, on Feb 6, granted approval to resume full operations at its flagship Sokor gold mine in Kelantan during the current renewed MCO, or MCO 2.0.

"The company is now preparing for its staff to return to work, and will ensure that all standard operating procedures and safety precautions provided by the government of Malaysia are adhered to," it said.

CNMC shares last closed unchanged at 24.5 Singapore cents on Friday.