CNMC Goldmine Holdings rated 'increase exposure' by SIAS

Stock Name: CNMC
Company Name: CNMC GOLDMINE HOLDINGS LIMITED

Research House: SIAS

Price Call: BUY

Target Price: 0.80

SIAS Research in an Apr 23 research report says: "CNMC reported a 4.6x increase in gold production from 553.8oz in 2010 to 3,097.4oz in 2011, following a 174% increase in reported gold resources from Jun 2010 to Dec 2011.

"FY11 Revenue grew by 8.7x partly due to higher gold prices. Reported attributable losses were US$5.1 million, of which US$3.3 million were due to IPO expenses and ex-gratia payment to key mining staff. We adjusted our forecasts to reflect higher than expected operating costs and higher prices for gold, silver, lead and zinc.

"In all, we expect CNMC to report revenue of US$48.1 million and PATMI of US$12.0 million in 2012. Our intrinsic value of the company remains unchanged at 80 cents per share (56.9% value-to-price gap from 51 cents). MAINTAIN INCREASE EXPOSURE."

CNMC Goldmine Holdings rated 'increase exposure' by SIAS

Stock Name: CNMC
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)."