CNMC Goldmine Holdings Ltd: AGM Shareholder Q&A – Key Highlights and Investor Insights

Significant Expansion in Gold Production Capacity

CNMC Goldmine Holdings Ltd has completed a major expansion of its carbon-in-leach (CIL) processing plant in April 2025, increasing capacity by 60% from 500 tonnes per day to 800 tonnes per day. This development is pivotal as 2026 marks the first year the company will fully benefit from this enhanced processing capability. Alongside the expanded plant, CNMC is constructing two new underground vertical mining facilities, in addition to its existing underground tunnels. These new facilities are expected to provide access to higher-grade gold ore, which could significantly boost production and profitability in the coming year.

• First full year of expanded CIL capacity in 2026
• Potential for increased gold production and access to higher-grade ore

Managing Production Fluctuations and Ore Grade Variability

Gold production at CNMC can fluctuate quarter-to-quarter due to differences in ore grade, mining sequence, and uncontrollable operational factors such as weather. However, CNMC employs ore blending strategies, mixing ore from both underground and open-pit operations, to smooth out variations in gold content. The company also maintains ore stockpiles to sustain plant throughput during adverse weather conditions, ensuring operational resilience and consistent output.

• Ore blending and stockpiling help manage variability in gold content
• Operational resilience during weather disruptions

Potential Mainboard Listing Transfer

CNMC is actively evaluating the possibility of transferring its listing to the Mainboard of the Singapore Exchange. The company has met the quantitative thresholds for a Mainboard listing, thanks to increased production and a significant appreciation in share price over the past year. The Board recognises the potential benefits, including greater visibility, broader investor access, and enhanced credibility. Any move will be subject to shareholder and investor feedback and a clear demonstration that it will enhance long-term shareholder value.

• Met thresholds for Mainboard listing
• Potential for increased investor interest and share price movement
• Decision pending shareholder feedback and business prospects

Update on Inland Revenue Board of Malaysia Tax Appeal

CNMC is currently appealing a Notice of Additional Assessment from the Inland Revenue Board of Malaysia. The company has disclosed all available information and will provide further updates via SGXNet should there be any material developments. Shareholders are advised to subscribe to CNMC’s mailing list for timely updates. This issue could potentially impact financials, depending on the outcome.

• Tax appeal ongoing; outcome could affect financials
• Shareholders advised to stay informed via SGXNet

Status of Exploration Activities

The geology team at CNMC is reviewing data from the Kelgold concession to evaluate mineralisation potential. No exploration activities have been carried out at the CNMC Pulai concessions. Updates will be provided as and when there are material developments. The success of exploration could offer upside potential for shareholders if new resources are discovered.

• Kelgold concession under review for mineralisation
• No current activity at CNMC Pulai
• Exploration outcomes may affect future production and share price

Cost Management Amid Rising Input Prices

CNMC has prioritized cost discipline from inception, recognizing its position as a price taker in the mining industry. The company has implemented various initiatives to optimize its cost structure, including reducing fuel consumption and investing in efficient power generation equipment. Replacement of older mining machinery with larger-capacity units has improved productivity and reduced manpower requirements. These measures are especially important given recent increases in fuel costs, largely attributed to global geopolitical tensions (the “war”). CNMC continues to identify new cost optimization opportunities to maintain efficiency and resilience.

• Cost optimization through efficient equipment and fuel reduction
• Rising fuel costs due to geopolitical tensions (“the war”)
• Ongoing efforts to mitigate impact on profitability

Share Price Volatility and Investor Outreach

CNMC acknowledges recent share price volatility, with the share price dipping from a high of \$1.90. The company attributes this to broader market conditions and sentiment towards gold prices, which are inherently cyclical. CNMC is committed to nurturing shareholder value through operational excellence, disciplined cost management, and consistent growth in production and profitability. The Board continues to evaluate opportunities to enhance shareholder value, including improved investor outreach and expanding its investor base. Sustained performance is expected to be reflected in share price over time.

• Share price volatility reflects market sentiment towards gold
• Focus on long-term value creation and operational performance
• Investor outreach initiatives underway

Key Takeaways for Investors

• 2026 will be a pivotal year for CNMC, with expanded gold production capacity and potential access to higher-grade ores
• Possible Mainboard listing transfer could significantly increase the company’s visibility and attract new investors
• Tax appeal and exploration results are key watch points for shareholders
• Rising input costs managed through ongoing cost optimisation strategies
• Share price volatility may persist, but management remains focused on long-term value creation

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are encouraged to conduct their own research and consult professional advisers before making any investment decisions. The information herein is based on company disclosures and may be subject to change as further updates become available.

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