CNMC Goldmine Holdings has applied for a transfer its listing from Catalist to the Mainboard, to help enhance long-term value for its shareholders.
The company says that by doing so, it can "heighten" its image both locally and overseas, as "public investors tend to place a premium" on those listed on the Mainboard, and enjoy better visibility and liquidity.
CNMC believes it can also secure a wider platform and greater opportunities for fund raising, including from investors whose mandates restrict their commitment to only Mainboard companies.
"The directors believe that this would result in a market valuation that better reflects the underlying value of the group," says CNMC. The company notes that Mainboard listed companies enjoy more analysts' coverage as well.
CNMC notes that in the last three financial years, earnings improve from US$4.1 million in FY2023 to US$42.0 million in FY2025.
"Throughout this period, the Group has maintained sound profit margins and generated steady operating cash flows, demonstrating the resilience of its core gold mining and processing operations and its ability to operate effectively across varying market conditions," says CNMC.
See also: CNMC receives circular from local Kelantan mining authority to pay higher royalties
The proposed transfer is subject to conditions including approval from shareholders.
CNMC shares closed at $1.35 on May 14, down 4.93%.
The day earlier, the company announced that local authorities are asking for higher royalties.
