STOCKS NEWS SINGAPORE-CNMC surges as gold production boost eyed

Source : REUTERS
Last Updated: Fri, Jan 04, 2013 03:30 hrs

Shares of CNMC Goldmine Holdings Ltd surged to their highest since April last year after the company said it had produced 740.82 ounces of gold dore bars from a new facility in Malaysia and expects a boost in production volumes.

CNMC shares jumped as much as 69 percent to S$0.525 on Friday. Nearly 45 million shares were traded, 47 times the average full-day volume over the past 30 days. CNMC was the second-highest traded stock by value in Singapore.

CNMC explores and mines for gold, in addition to processing mined ore into gold dores. The Singapore-based company develops the Sokor Gold Field Project in the Malaysian state of Kelantan.

Gold dore bars are a semi-pure alloy of gold and silver that may need to be refined further. CNMC's dore bars have 80-92 percent of fine gold, according to a company spokesman.

The new facility started operation after the company received approval from the Malaysian authorities and is expected to contribute to a ramp-up in gold production and increase the group's revenue, CNMC said in a statement.

1116 (0316 GMT)

(Reporting by Eveline Danubrata in Singapore; Editing by Anupama Dwivedi; eveline.danubrata@thomsonreuters.com)

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10:18 STOCKS NEWS SINGAPORE-OCBC raises OSIM target, keeps 'buy'

OCBC Investment Research raised its target price on massage chair maker OSIM International Ltd to S$2.14 from S$1.87 and maintained 'buy', citing China's recovering economy, innovative products and attractive valuation versus its peers.

OSIM shares were down 0.3 percent at S$1.78 on Friday. The stock surged 50 percent last year, beating the 32 percent gain in the FT ST Midcap Index.

"We believe that OSIM International would be a key beneficiary of a recovery in the economic conditions in China, which is its largest market," OCBC said.

OSIM plans to launch two new massage chair models and has embarked on a nationwide advertising campaign in China, OCBC said, adding that these initiatives, coupled with a focus on improving productivity, will help drive sales and profitability in 2013 fiscal year.

1012 (0212 GMT)




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