CNMC

CNMC: Phenomenal 4Q13 results despite a 26% y/y fall in average gold price; Net profit turnaround to US$1.6m from US$150k loss in 4Q12, as revenue spiked 76% to US$7.4m, on the back of the significant increase in the sales volume of fine gold and operational leverage. This brought FY13 earnings to US$2.7m (+260%) and revenue to US$16.6m (-1%). For the quarter, production at Sokor mine expanded 336% to 5,813.3oz from new facilities and increased productivity at the two leaching yards. With the operational leverage, group's all-in cost shrank 70% y/y (-2% q/q) to US$761/oz, on lower mining cost (-80%) and capex (-92%). CNMC declared final dividend of 0.1¢, bringing FY13 total to 0.2¢. At last closing of $0.26, CNMC trades at 12.9x P/E and 5.9x P/B.