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CNMC posts Q2 net profit of US$0.83m, reverses year-ago loss

CATALIST-LISTED CNMC Goldmine Holdings on Wednesday reported net profit attributable to shareholders of US$0.83 million for the second quarter ended June 30, reversing a loss of US$0.34 million in the year-ago period.

Higher gold production, lower operating costs and the absence of expenses relating to a proposed dual listing in Hong Kong contributed to the quarter's improved results, said CNMC. The loss in Q2 2018 was due mainly to said expenses for the proposed dual listing, which did not materialise.

Revenue in the second quarter rose 7.4 per cent to US$10 million, with higher output from CNMC's flagship Sokor gold field in Kelantan, Malaysia, as well as higher gold prices.

Earnings per share were 0.2 US cent, compared with a loss per share of 0.08 US cent for the year-ago period. No dividend was declared, the same as a year ago.

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In June, CNMC incorporated a subsidiary for underground mining at Sokor, even as it continues with existing open-pit mining there. CNMC has also started planning for a flotation plant at Sokor for processing lead and zinc, expected to begin generating revenue in the first half of next year.

CNMC chief executive officer Chris Lim said the group is laying the foundation for long-term growth with its foray into underground mining and diversification into other metals. "Once these growth engines are fully in place, we will be a diversified mining company with multiple income streams," he added.

CNMC shares closed down 0.5 Singapore cent or 1.54 per cent at 31 Singapore cents on Wednesday before the results release.