CNMC Goldmine Holdings’ earnings for the first quarter of 2019 have more than doubled its earnings for the first quarter of 2018 as revenue jumped on a rise in gold output.
The gold producer’s profit attributable to shareholders rose from US$0.53 million in 1Q2018 to US$1.38 million in 1Q2019, the highest since the third quarter of 2016.
Revenue swelled to US$10.38 million from US$6.10 million as the company produced and sold 8,023.38 ounces of fine gold in 1Q2019 compared to 4,518.50 ounces in 1Q2018. The higher production and sales volumes offset lower selling prices in 1Q2019, during which its average realised gold price was US$1,293.28 an ounce, down from US$1,348.96 in 1Q2018.
CNMC managed to bring down its all-in production costs for 1Q2019 to US$923 per ounce of gold from US$1,156 for 1Q2018 as the increase in gold output at its flagship Sokor project in Malaysia’s Kelantan state generated economies of scale.
Included in the all-in costs of US$923 was capital expenditure of US$82 for the construction of an underground mining facility as well as production expansion infrastructure. As disclosed last year, the Group will commence underground mining at Sokor in 2019 and is studying the possibility of doubling the production capacity of its carbon-in-leach (“CIL”) plant as part of efforts to increase its gold output.
Mr Chris Lim, the Group’s CEO, said, “As can be seen from our performance in the last few quarters, we have been able to boost gold production with the CIL plant in full swing since May last year. We expect the growth momentum to continue as the various initiatives we announced last year to boost production unfold in 2019 and 2020. Overall, we believe our full year revenue this year will exceed the record US$39.55 million generated in 2018, barring any unforeseen circumstances.”
The company had unveiled plans last year to, among other things, to expand the production capacity of its heap leaching and CIL plants and to reduce operating costs by streamlining workflow and reduction of diesel consumption. The various initiatives will be funded internally.