Osman, in deriving his newer target price, is assuming an average selling price of US$5,000 per ounce, up from US$4,300, with gold, amid an open war in the Middle East, up 25% above PhillipCapital's previous forecast.
He has also increased his FY2026 production volume growth assumption to 10%, with contributions seen from a second underground facility at the Sokor mine later this year.
CNMC is in the midst of digging down further and the additional production is seen to begin meaningfully by 2027. "This US$12 million capex project will provide access to higher-grade ore deeper underground," says Osman.
At the same time, thanks to stronger operating leverage, its unit cost is trending down.
See also: OCBC's Lim raises fair value for Info-Tech Systems to $1.30
However, Osman warns that the company might be slapped with additional tax liabilities and other obligations to the tune of US$7.3 million.
Even so, Osman has turned more bullish on this counter - despite the 620% run in the past year.
"With persistent geopolitical risks, including the US/Israel-Iran conflict, alongside stable or lower interest rate expectations in 2026, we believe CNMC still has potential for upside given its strong production outlook and operating leverage," he says.
See also: Analysts remain positive on CSE Global following recent FY2025 results
He has a new target price of $2.34 on this counter, up from $1.47 previously.
CNMC Goldmine shares, as at 9.48 am, changed hands at $2.09, up 5.03% for the day.
