CNMC Goldmine kept at ‘overweight’ with 43 cents target price by NRA Capital

SINGAPORE (May 16): NRA Capital has kept its “overweight” call on CNMC Goldmine Holdings but with higher target price of 43 cents, up by 0.5 cents, following the company’s 1Q earnings announced recently which exceeded expectations.

During the quarter, the company posted 133% y-o-y increase in earnings to US$4.57 million ($6.3 million). “We remain bullish on CNMC and maintain our view that the company is high return, low risk, as CNMC continues to benefit from the triple combination of higher output, higher selling prices and low costs,” states NRA Capital’s head of research Liu Jinshu in his May 16 note.

“Any new concession will be a positive icing on the cake, supported by a solid balance sheet of 8.8 cents per share of net cash, which translates into around one third of the current share price,” he adds.

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