CNMC Goldmine shares shine amid soaring gold prices

SINGAPORE - Shares of CNMC Goldmine have risen more than 19 per cent so far this week, tracking soaring gold prices as investors sought safe-haven assets amid geopolitical tensions, attacks on the Federal Reserve and the prospect of more US interest rate cuts.

The Catalist-listed mining stock rose as much as 5.9 per cent to $1.25 in morning trade on Jan 14, and was up 3.4 per cent at $1.22 at 1.40pm. About eight million shares had changed hands. The counter closed 5.1 per cent higher at $1.24 on Jan 14.

Spot gold, meanwhile, rose 1.1 per cent to a new record high of US$4,639.42 an ounce on Jan 14.

The precious metal has surged more than 60 per cent over the past year amid heightened geopolitical and macroeconomic uncertainties, including the Russia-Ukraine war, conflict in Gaza, and policy uncertainty stemming from US President Donald Trump’s tariffs.

The latest spikes have been driven by Mr Trump’s capture of Venezuela’s leader, his renewed threats to annex Greenland, and violent protests in Iran that could lead to a toppling of the Islamic regime there. 

Other precious metals have also rallied. Silver broke above US$90 an ounce for the first time on Jan 14, while platinum and palladium both jumped more than 4 per cent.

CNMC Goldmine in August posted record earnings of US$15.8 million (S$20.4 million) for the first half of the 2025 financial year, a 256.1 per cent jump from a year earlier. Revenue for the six months ended June 2025 surged 78 per cent to US$52.8 million, driven by higher gold production and stronger selling prices.

In comparison, the group earned US$9.8 million for the whole of the 2024 financial year. Its previous earnings record was US$12.2 million in the 2014 financial year.

Mr Zavier Wong, market analyst at trading platform eToro, said CNMC Goldmine Holdings’ share price strength appears to be tied to a broader shift in global sentiment towards gold.

“Gold has been well bid for months, but the latest bout of geopolitical uncertainty and persistent rate ambiguity has sharpened investor focus on the metal again... For a small, pure-play producer like CNMC, that tends to feed through quickly into their share price, given how tightly it tracks movements in gold,” he said.

“CNMC’s earlier record earnings have definitely helped anchor confidence that higher gold prices can translate into real cash flow for them – if geopolitical risks remain sticky and central bank demand stays firm, gold’s support looks intact, and companies like CNMC are likely to remain on investors’ radar.”

Ms Priyanka Sachdeva, senior market analyst at Phillip Nova, noted that gold’s ongoing strength, underpinned by safe-haven demand and positive flows into precious metals, continues to support mining stocks.

She added that CNMC’s expanded processing capacity at its Sokor operation in Kelantan, Malaysia, remains a key growth driver.

Ms Sachdeva also noted that CNMC’s share register is relatively retail-heavy, with individual investors and insiders collectively holding the majority stake, while institutional presence remains limited.

“This can contribute to heightened price volatility, a common feature in smaller, sector-specific stocks, but does not, in itself, indicate fundamental weakness,” she said.

“In short, while the near-term surge is largely sentiment-driven by the bullion rally, CNMC’s earnings trajectory and asset expansion lend credibility to the uptrend, even as the stock remains a small-cap play rather than a large institutional favourite.”