CNMC

CNMC: Voyage Research reiterate its highly positive outlook on CNMC on the back of increased production and falling unit costs. House has an Increase Exposure with $0.80 TP for the counter. The group's recent JV with the Perak state government-owned Menteri Besar Incorporated (Perak) reflects CNMC’s long term strategic planning to develop other resources (tin), whilst leveraging on its experience and infrastructure in Malaysia. This venture, if successful, will be evidence of the company’s ability to grow beyond its current Sokor concession into a major mining company in Malaysia. Another positive development is CNMC’s decision to give out its maiden dividend, which is a signal of stability and confidence in future production and cash flows. Voyage expect CNMC to fund future exploration activities in Kelantan and Perak from cash flow generated from gold sales, while reserving some cash for shareholders.