CNMC's Q1 net profit more than doubles on forex gain

CNMC Goldmine Holdings' net profit more than doubled in the first quarter, as the appreciation of the ringgit gave a huge boost to its bottomline.

The firm recorded net profit of US$4.55 million for the three months ended March 31, up from US$1.98 million a year ago.

Its revenue also grew 7.1 per cent to US$8.4 million despite a 4.1 per cent drop in the average realised gold price, as production and sales volume of fine gold increased.

CNMC recorded an unrealised foreign exchange gain of US$1.96 million as the appreciation of the ringgit boosted the value of its ringgit-denominated deposits.

Without the one-off gains, net profit rose 13.7 per cent to US$3.65 million, said the firm.

CNMC said it will stand to benefit if gold prices continue to head higher following their rebound in recent months.

Said its CEO Chris Lim: "Movements in gold prices are beyond our control but we have once again demonstrated our ability to grow revenue by increasing production and keeping all-in production costs low."