Stock Name: CNMC
Company Name: CNMC GOLDMINE HOLDINGS LIMITED
SIAS Research in a Dec 1 research report says: "CNMC is a producing gold mining company with 372,700oz of gold resources. What's promising is that the company is not only pursuing resource growth via exploration efforts, but also expanding production capacity to raise output.
"We expect CNMC to make about US$6.4 million from gold sales in 2011. CNMC plans to commence mining at an additional deposit and raise ore processing capacity by 10x in 2012.
"Based on a cost of equity of 11% and a cost of debt of 4%, we value CNMC at 80 cents. By varying cost of equity between 10% and 12%, our valuation will range between 67.7 cents and 89.3 cents. INCREASE EXPOSURE (initiating coverage)."
Company Name: CNMC GOLDMINE HOLDINGS LIMITED
| Research House: SIAS | Price Call: BUY | Target Price: 0.677 |
SIAS Research in a Dec 1 research report says: "CNMC is a producing gold mining company with 372,700oz of gold resources. What's promising is that the company is not only pursuing resource growth via exploration efforts, but also expanding production capacity to raise output.
"We expect CNMC to make about US$6.4 million from gold sales in 2011. CNMC plans to commence mining at an additional deposit and raise ore processing capacity by 10x in 2012.
"Based on a cost of equity of 11% and a cost of debt of 4%, we value CNMC at 80 cents. By varying cost of equity between 10% and 12%, our valuation will range between 67.7 cents and 89.3 cents. INCREASE EXPOSURE (initiating coverage)."
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