CNMC Goldmine Challenges Kelantan’s Higher Gold and Silver Royalty Rates

An update from CNMC Goldmine Holdings Limited ( (SG:5TP) ) is now available.

CNMC Goldmine Holdings Limited has disclosed that Kelantan’s State Land and Mines Office has issued a circular revising mineral royalty rates in the state, raising gold royalties from 10% to 15% and silver royalties from 10% to 12%, while keeping lead and zinc rates unchanged. The company notes that, based on legal advice, such changes typically require publication in the official gazette to take legal effect, and it has not yet received any gazetted notice.

CNMC is assessing the potential impact of the proposed royalty increases with its legal advisers and is working with stakeholders, including its joint venture partner and the Kelantan Mining Association, to submit representations and an appeal against the higher rates. The miner has cautioned shareholders and investors to exercise care when dealing in its securities until there is greater clarity on the legal status and financial implications of the revised royalty regime, and has pledged to provide further updates as material developments arise.

More about CNMC Goldmine Holdings Limited

CNMC Goldmine Holdings Limited is a gold mining group with operations in the Malaysian state of Kelantan. The company, together with its subsidiaries, focuses on the exploration and production of gold and other minerals, and works in partnership with local entities such as the Kelantan State Economic Development Corporation within the regional mining sector.

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Technical Sentiment Signal: Buy

Current Market Cap: S$615.6M

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