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MarketScreener Homepage  >  Equities  >  SINGAPORE EXCHANGE  >  CNMC Goldmine Holdings Limited    CNMC   SG2D72974892

CNMC GOLDMINE HOLDINGS LIMITED

(CNMC)
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Congo opens Chinese-owned Deziwa copper and cobalt mine

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01/15/2020 | 05:17am EST

DEZIWA MINE, Democratic Republic of Congo (Reuters) - The Democratic Republic of Congo's state mining company Gécamines on Wednesday opened the Deziwa copper and cobalt mine and processing plant, part of a joint venture majority-owned by China Nonferrous Metal Mining Company (CNMC).

The Deziwa deposit, around 35 kilometres east of Kolwezi, is estimated to hold 4.6 million tonnes of copper and 420,000 tonnes of cobalt.

Somidez, the joint venture controlling it, is held 51% by CNMC and 49% by Gécamines.

An $880 million project which started construction in May 2018, the Deziwa mine aims to produce 80,000 tonnes of copper and 8,000 tonnes of cobalt per year, according to Somidez.

In written comments prepared for the launch, Gécamines chairman Albert Yuma described it as an "innovative" partnership for Congo, with a greater government stake than other projects in the country.

For example, Gécamines holds just 25% of Kamoto Copper Company, with 75% owned by Glencore subsidiary Katanga Mining.

The Deziwa mine is the latest example of the close investment ties China has forged with Congo. Yuma said the two countries were "united in their wish to strengthen and develop new industrial and economic relations".

CNMC will operate Deziwa for nine years, with a possible two-year extension, before transferring it to Gécamines.

"Unlike our other industrial partnerships, the lifespan of our collaboration is already fixed and at the end of it, we will be the only masters on board," Yuma said in the speech, read out in his stead at the mine opening which he did not attend.

Based on known reserves and planned annual production, Gécamines will operate the facility for a further seven to nine years, Yuma said, without giving further details.

Gécamines is being investigated by Congolese prosecutors over a 200 million euro ($222 million) line of credit issued to the state mining company by a company owned by Israeli billionaire Dan Gertler, who is under U.S. sanctions.

Another headache for the company is the slide in cobalt prices, which has hurt Congo's output of the battery material. Glencore decided in August 2019 to close the Mutanda copper and cobalt mine - the world's largest.

Mutanda shut on Nov. 25, a month before the mine was set to go into maintenance, due to a lack of sulphuric acid.

(Writing by Hereward Holland and Helen Reid; editing by Jason Neely and Mark Potter)

By Stanis Bujakera

Stocks mentioned in the article
ChangeLast1st jan.
CNMC GOLDMINE HOLDINGS LIMITED 0.00% 0.27 End-of-day quote.0.00%
GLENCORE -4.09% 221.4 Delayed Quote.-5.93%
KATANGA MINING LIMITED -4.35% 0.11 Delayed Quote.-11.54%
LME COPPER CASH -3.17% 5779 End-of-day quote.-6.27%
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Latest news on CNMC GOLDMINE HOLDINGS LIM
01/15Congo opens Chinese-owned Deziwa copper and cobalt mine
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01/15Congo launches Chinese-owned Deziwa copper and cobalt mine
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2019CASH DIVIDEND/ DISTRIBUTION : : Mandatory
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2019FINANCIAL STATEMENTS AND RELATED ANN : : Notification Of Results Release
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Financials (USD)
Sales 2019 42,7 M
EBIT 2019 8,87 M
Net income 2019 5,75 M
Finance 2019 20,4 M
Yield 2019 2,40%
P/E ratio 2019 14,2x
P/E ratio 2020 8,06x
EV / Sales2019 1,43x
EV / Sales2020 0,87x
Capitalization 81,5 M
Technical analysis trends CNMC GOLDMINE HOLDINGS LIM
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Income Statement Evolution
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Mean consensus BUY
Number of Analysts 1
Average target price 0,29  $
Last Close Price 0,20  $
Spread / Highest target 46,6%
Spread / Average Target 46,6%
Spread / Lowest Target 46,6%
EPS Revisions
Managers
NameTitle
Kuoh Yang Lim Chief Executive Officer & Executive Director
Xiang Xiong Lin Executive Chairman
Wai Khen Kan Chief Operating Officer & Group Finance Manager
Chee Kong Choo Executive Vice Chairman
Cheng Tuck Kuan Lead Independent Non-Executive Director
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