Revenue for fine gold increased by 631.6% to US$6.31 million in 3Q 2013 as compared to 3Q 2012 as production volume of fine gold increased by 921.4% to 4,762.95 ounces in 3Q 2013 as compared to 466.33 ounces in 3Q 2012.

In its efforts to maintain the highest level of corporate transparency, CNMC has provided greater clarity on its cost metrics associated with gold production in accordance with the World Gold Council?s recently issued Guidance Note on cost reporting for gold mining companies.

The Group achieved an adjusted operating cost of US$473 per ounce of gold sold and an overall all-in cost of US$775 per ounce of gold sold for 3Q 2013, which is a 29.1% decrease in the all-in cost as compared to 3Q 2012. The economies of scale were achieved with the ramp up in gold production volume and also the significant improvement in production efficiencies through enhanced technology and methodology.

Going forward, the Group is confident that it will be able to achieve further growth in production.

Profitability

Total operating expenses decreased by US$1.72 million from US$5.13 million in 3Q 2012 to US$3.41 million in 3Q 2013 due to the decrease in contractor expenses of US$2.18 million and decrease in travelling and transportation costs of US$0.92 million. Both expenses had declined 99.1% and 96.0% respectively as export ore sales and processing did not recur in 3Q 2013. The decrease was also due to reduction in the changes in inventories of US$0.15 million in 3Q 2013 due to the realisation of the cost of work-in-progress as of the end of 3Q 2013. In comparison, the changes in inventories were recorded as a credit of US$1.02 million in 3Q 2012 mainly due to the accumulation of work-in-progress in preparation for the first heap leach trial production at the end of the financial year ended 31 December 2012.

The decrease of total operating expenses was partly offset by the increase in amortisation and depreciation expenses of US$0.32 million or 87.7% mainly due to the increase in amortisation of mine properties as a result of the increase in the volume of gold produced.

The Group recorded a tax expense of US$0.83 million in 3Q 2013 as compared to US$0.12 million in 3Q 2012 as a result of higher profit. The Group?s effective tax rate was approximately 5.0% higher than the applicable tax rate of 25% due to the withholding of tax arising on management fee and interest income and certain expenses incurred which were not tax deductible.

Due to the reasons stated above, CNMC?s net profit increased by 94.7% to US$1.95 million in 3Q 2013 as compared to US$1.0 million in 3Q 2012.

Should see a surge in the stock price. :)

Huat to all vested!