While CNMC Goldmine could fall back down in the near term, it may soar about 40% by Q2 2026
[SINGAPORE] At the turn of the year, one share of CNMC Goldmine was worth S$0.25. Just over 10 months in, it has surged more than 400 per cent to S$1.28.
Its fortunes have shined as investors flocked to gold as a safe haven amid geopolitical volatility and economic uncertainty. The price of the precious metal crossed the mythical US$4,000 barrier on Oct 8, and hit a new high of US$4,186.25 an ounce on Wednesday (Oct 15). Year to date, it has notched a remarkable return of 58.5 per cent.
Its latest surge was caused by the most recent round of US-China trade tensions, as investors continued to seek refuge and further US interest-rate cuts also spurred demand.
Many have also become suspicious of sky-high stock market valuations, as a recent Bloomberg report showed that players like OpenAI and Nvidia have created a US$1 trillion artificial intelligence market through circular deals. Against this backdrop, gold has emerged as a favoured alternative.
Singapore-based players such as CNMC Goldmine, which became the first gold producer listed on the Catalist board in 2011, have also enjoyed the benefits. Investors have piled into the company, which primarily explores, mines and processes gold with a focus on its Sokor Gold Field Project in the state of Kelantan, Malaysia.
Analysts see its shares continuing to rise with gold prices. Lim & Tan Securities analyst En Jie Chan said that its “direct exposure” to the rising spot price of gold has resulted in its valuation surge this year, adding that the company “exhibits operating leverage” — that is, its profits have grown faster than its revenue as the price of gold has risen.
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“Any incremental increase in gold prices should provide a proportionately larger boost in earnings,” stated Chan.
In June, the World Gold Council released data that found about 95 per cent of central banks expected to continue increasing their gold holdings in the following year as they reduce their US dollar holdings.
Standard Chartered Bank recently upgraded gold to “overweight” within its multi-asset portfolios, with the bank’s chief investment officer for Africa, Middle East and Europe, Manpreet Gill, stating that central bank reserve diversification demand has further to run.
CNMC also completed its carbon-in-leach plant expansion in April this year, nearly doubling its daily processing capacity from 500 to 800 metric tonnes. That, said Chan, will be a further boost to CNMC.
Additionally, not that glitters is gold, even for CNMC.
CGS International Securities analyst Wei Ren Chua believes that the stock may however, see “exhaustion” in the short-term due to its “strong parabolic extension” but could settle in the range of S$1.03 to S$1.11. A parabolic extension often implies that a stock’s rally is overextended.
“Despite the near term potential weakness, CNMC upside is still valid over the longer term period and may see prices reaching S$1.78 by next year Q2,” said Chua.
A Sep 3 note from SAC Capital forecast S$0.103 in earnings per share for CNMC in 2025 and S$0.12 for 2026. It had a S$1.13 target price for CNMC’s shares and forecast a dividend yield of 3.8 per cent.
Chan warned that the company is also exposed to the downside risk of gold prices and “more selling pressure” from its directors, noting that their last personal sale happened on Sep 16 at S$0.9855 per share.
Gold’s surge has also spawned rallies in related metals like silver, which reached a record high of US$53.55 an ounce on Monday (Oct 13) and is up about 83 per cent year to date.
Platinum and palladium have followed at returns of about 83 and 62 per cent in 2025, respectively, as demand for the precious metals as havens has also been driven by threats to the US Federal Reserve’s independence and the US government shutdown.
