... wishes to announce that the Group expects to report a net loss for the three months financial period ended 31 December 2016(“4Q2016”).
This loss in 4Q2016 was mainly due to:
(1) net unrealised foreign exchange losses as a result of depreciation of Malaysian Ringgit against US Dollar; and
(2) a decline in revenue as a result of lower ore grades.
This profit warning is based on a preliminary review of the Group’s unaudited consolidated management accounts for 4Q2016. Despite the 4Q2016 loss, the Group expects to be profitable for the full year ended 31 December 2016 (“FY2016”).
1. Will dual listing boost share price?
2. Is 2018 a turnaround year?
KGI says :>
CNMC: The company is planning to seek a dual listing on the main board of the HK exchange, saying that the proposed listing will increase the firm’s market visibility and help it to be more exposed to a wider range of private and institutional clients.
Preparatory works are still ongoing and no application for the listing has been made yet. Its share price rose 11% in yesterday trading after the announcement and currently trades at 2.2 P/B and 10x historical P/E. Net profits fell almost 90% YoY in 9M17 due to lower ore grades but may improve in 2018 due to the start of the group’s third gold-ore processing plant that may optimise overall gold output.
CNMC will give a presentation to Lim & Tan Securities brokers tomorrow. I think the stock is turning a corner.
#1 catalyst: revenue to increase in 2018 as compared to 2017 –
driven by expected increase in gold production at Carbon-In-Leach plant.
#2 catalyst: Potential new source of income from production and sales of silver, lead and zinc once flotation plant at Sokor starts commercial operation.
GOLD - Gold Higher on Dollar Under Pressure from Dovish Fed
Gold jumped 1.46 percent on Wednesday after the Fed Chair continued to signal an upcoming rate cut. In his prepared remarks and later in the question and answer period Fed Chair Jerome Powell went full dove with his comments. The US-China trade war continues to be a threat for global growth and the US central bank is being forced to slash the benchmark interest rate to keep the economy from regressing.
The metal broke through the $1,400 price level and is trading at $1,419 ahead of another day of Chair Powell being grilled on American monetary policy, this time by the Senate committee.
A soft dollar, trade war and Middle East tensions have put gold higher with the metal retaking the crown as top safe haven.
Gold prices are coiling once again in what many expect to be a clear path toward the $1,500 an ounce level. The primary driver for the yellow metal is that the US is about to enter an easing cycle and China is prepared to unleash more stimulus regardless what happens on the trade front.
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