“CNMC Goldmine remains a prime beneficiary of rising gold prices amidst global uncertainties and increasing demand for the safe-haven asset,” Chan writes.
With gold being a “standout performer”, reaching an all-time-high of US$4,770 ($6,126.03) per ounce as of January this year, the analyst notes that it’s a “great time” to be a “gold digger”. Gold prices averaged around US$2,266 per ounce in 1H2024 and rose to US$3,197 per ounce in 1H2025.
Despite gold's record levels, the precious metal may become even more attractive relative to other interest-bearing assets with expectations of further rate cuts this year. CNMC is also tipped to benefit from the expansion of its carbon-in-leach (CIL) plant. Completed in April 2025, the plant’s new daily processing capacity increased by 60% to 800 tonnes of gold-bearing ore.
Against this backdrop, Chan expects CNMC to end FY2025 on a strong note. The company reported record earnings of US$15.8 million for its 1HFY2025 ended June, which “blew past” Chan’s expectations. Net profit stood at 134% of Chan’s previous estimates while revenue, at US$52.8 million, stood at 71% of the analyst’s full-year forecast.
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As a result, Chan has raised his FY2025 and FY2026 earnings estimates by 198% and 227% to US$35.1 million and US$41.1 million respectively. The new figures reflect stronger operating leverage from sky-high gold prices and the higher average gold price of US$3,800 per ounce in 2H2025.
That said, investors should remain mindful of CNMC’s ongoing appeal of an additional US$7.2 million tax assessment raised by the Inland Revenue Board of Malaysia, which poses a potential headwind.
Chan has maintained his “buy” call on the stock. His new target price, up from 48 cents, is derived from a blend of FY2026 P/E of 12.2 times, a 20% discount to its peers’ average and discounted cashflow (DCF) valuation.
As at 2.19pm, shares in CNMC are trading 9 cents higher or 7.26% up at $1.33.
