CNMC Goldmine - Extracting economies of scale | I3investor

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CNMC Goldmine - Extracting economies of scale

StockFanatic

Publish date: Wed, 06 Aug 2014, 09:42 AM

After a gestation period of two years, CNMC's Sokor Gold Project has finally produced encouraging results. We expect strong revenue and earnings ahead, as the company benefits from the economies of scale due to its capacity expansion.

CNMC has been hitting new all-time highs in terms of gold production in the past year. Given the new capacity coming onstream, CNMC is expected to enjoy lower production cost per oz due to the economies of scale. Its FY14 gold production may be double that of FY13. We expect CNMC's FY14 revenue and earnings to soar accordingly.

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