CNMC Goldmine Holdings: Phillip Securities Maintains BUY Rating Amid Production Expansion January 26, 2026
Company Overview
CNMC Goldmine Holdings operates as a gold mining company with operations in Malaysia’s tropical rainforest region. The company focuses on gold extraction through both open-pit and underground mining facilities, positioning itself as a key player in the Malaysian mining sector.
Production Expansion Drives Growth Prospects
The company has successfully completed a 60% expansion of its CIL (Carbon-in-Leach) facility, resulting in a significant increase in gold production capacity from 500 to 800 tonnes per day. This substantial enhancement represents a major milestone in CNMC’s operational scaling efforts and demonstrates management’s commitment to expanding production capabilities.
Work is currently underway on the additional Sokor underground gold mining facility, which is expected to reach completion by1H2026. However, the project faces potential challenges due to its location in Malaysia’s tropical rainforest, where the terrain is more susceptible to water accumulation issues. Should these environmental challenges persist, completion may be delayed to the second half of 2026, with operations potentially beginning in 2027.
Investment Merits and Financial Outlook
Phillip Securities Research has raised its gold price forecast by 13% to US$4,300, up from the previous forecast of US$3,800, reflecting the current gold price surge of 21% above earlier projections. This adjustment has led to a 6.6% increase in projected PATMI for FY26e.
CNMC’s management appears focused on enhancing shareholder returns through increased dividend payments if earnings exceed expectations. Currently maintaining a 30% payout ratio, there is potential for this to increase based on performance.
Research Recommendation
Phillip Securities Research maintains its BUY rating for CNMC, raising the target price to S$1.47 from the previous S$1.34, implying an 11.2x FY25e P/E ratio. The valuation approach remains conservative, with no terminal value factored in, given that the mining permit remains valid until 2034.
Key catalysts identified include the potential for earlier-than-anticipated completion of the additional Sokor Underground mining facility and the possibility of a higher dividend payout ratio exceeding the current 30% level.
Frequently Asked Questions
Q: What is CNMC’s current gold production capacity?
A: CNMC has increased its gold production from 500 to 800 tonnes per day following the completion of a 60% CIL facility expansion.
Q: When is the Sokor underground mining facility expected to be completed?
A: The facility is expected to be completed by the first half of 2026, though potential delays due to water accumulation issues could push completion to the second half of 2026.
Q: What is Phillip Securities Reseach’s current recommendation and target price for CNMC?
A: Phillip Securities Research maintains a BUY rating with a target price of S$1.47, up from the previous S$1.34.
Q: How has the gold price forecast been adjusted?
A: The gold price forecast has been raised by 13% to US$4,300 from the previous US$3,800 due to current gold prices surging 21% above earlier projections.
Q: What are the key investment catalysts for CNMC?
A: Key catalysts include earlier-than-anticipated completion of the Sokor Underground mining facility and a potential increase in the dividend payout ratio above the current 30%.
Q: What challenges does the Sokor project face?
A: The project is located in Malaysia’s tropical rainforest, making it more prone to water accumulation issues due to the terrain, which could impact completion timing.
Q: How long is CNMC’s mining permit valid?
A: The mining permit remains valid until 2034, providing operational certainty for the medium term.
Q: What is management’s approach to shareholder returns?
A: Management appears keen to increase shareholder returns through dividends if earnings exceed expectations, potentially raising the current 30% payout ratio.
This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.
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About the author
Hashim Osman
Hashim graduated from the National University of Singapore with a degree in Business Administration.
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