Earnings for the six months ended June was US$19.4 million, up 41% y-o-y, thanks to both higher production volumes and loftier average selling prices.\
"CNMC is well-positioned to capture further upside by selling gold at spot prices," state Liu and Chew in their Aug 15 note.
"Amid ongoing geopolitical tensions, global trade uncertainties, aggressive central bank purchases, and the Fed's monetary easing cycle, we remain bullish on gold prices."
They expect 2HFY2025 production levels to replicate the last half year's with expanded capacity, which inspires them to raise their FY2025 earnings forecast by 21% to US$28.7 million.
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From an earlier target price of 54 cents, they now figure that the stock is worth 70 cents, which is based on 9.1x FY2025 earnings.
CNMC shares changed hands at 60 cents as at 9.58 am, up 0.84% for the day but up 140% year to date.
