WITH gold prices rising significantly, shouldn’t Malaysian gold mining companies be doing well?
When it comes to publicly listed gold mining companies operating in Malaysia, they seem to be incapable of producing the necessary results.
Part of the problem may lie in the fact that ownership of the gold deposits often belongs to different parties, not to mention state and other royalties to be paid.
Another anomaly is that most Malaysian-listed gold mining companies are listed in foreign exchanges, and their shares have remained in the doldrums for much of the time.
Take Besra Gold Inc, listed on the Australian Stock Exchange in 2021, which raised A$10mil to develop its Bau gold project in Sarawak.
The stock has dropped 60% in the last month alone, now trading at a mere 2.9 Australian cents with a market capitalisation of only A$11.3mil.
Aside from being loss-making, Besra is in a real fix – its mining licence has expired, and it is still awaiting renewal from the Sarawak’s State Mining Mineral Authority.
Since the licence was issued years ago, when Sarawak was under a different leadership, it’s uncertain whether it will be renewed.
The company is also facing a shareholder dispute.
Just two weeks ago, the board called a meeting to remove Datuk Lim Khong Soon as a director.
Another Malaysian miner listed abroad is Singapore-listed CNMC Goldmine Holdings Ltd, with a market capitalisation of S$120mil.
For financial year 2024 (FY24), it reported a doubling of profits to US$9.8mil on the back of soaring gold prices, though this isn’t enough to attract new investor attention.
Its flagship asset is the Sokor mine in Kelantan.
Then there’s Monument Mining Ltd, listed in Canada and trading at 32 Canadian cents with a market capitalisation of C$106mil.
It owns the Selinsing Gold Mine in Pahang and reported a net profit of US$11.8mil for the six months ended Dec 31, 2024.
However, its past losses raise questions about the sustainability of these profits.
On Bursa Malaysia, Niche Capital Emas
Holdings Bhd, with mining operations in Kelantan, reported a loss of RM4.8mil for the six months ended Dec 31, 2024, for its FY25 ending June 30.
Clearly, these are not glittering stocks for investors seeking gold exposure.
