AuMas Resources Bhd, the nation’s sole listed gold miner with exclusive concession in Sabah, has received a ‘Buy’ call with a 52-week target price of 86 sen.
In a initiation research note released today, BIMB Securities Research said its these was premised on three points: scalable output; cost efficiency gains and gold price leverage as well as undervalued resource optionality.
“With a gold supercycle tailwind, we forecast earnings CAGR of 22% (FY25–27). Valuation at 18x FY25F P/E is undemanding given a 19% ROE. Catalysts include sustained high gold prices, output ramp-up, and mines exploration. Key risks include production shortfalls and gold price volatility,” it said.
However, it cautioned that the report did not meet BIMB’s usual standards of rigour.
Despite our best efforts, it said management declined a direct engagement , citing a pending litigation outcome expected by end-May.
“Markets do not pause—and neither do we. Our analysis draws from publicly available company disclosures, benchmarking against comparable local mining peers, and our guesstimates,” the research house said.
AuMas has an exclusive concession at Bukit Mantri, Sabah until 2048. The area sits on a gold and silver deposit of 6.5 and 20.5 tonnes respectively, valued at RM3 billion at today’s prices.
Formerly known as Bahvest Resources Bhd, the company’s mine is located 39 km from Tawau Airport and 64 km from Tawau town, with mining rights secured through a 33-year concession from the Sabah Lands and Surveys Department.
The total concession area spans 317.7 hectares, of which 28 hectares have been delineated as a defined mineral resource zone currently under active mining, according to the report.
It noted that AuMas’ leadership team has limited direct experience in mining or the broader resources sector.
While not a criticism in itself, it said it naturally raised questions about operational depth as the company enters a more technical growth phase.
AuMas CEO Tzu Khen Chong, 67, is a long-time company insider, having served as CFO during the Bahvest era.
While his continuity is valuable, his lack of mining-specific background may limit agility in managing operational complexity, noted the report.
AuMas was trading at 71 sen at 11.45am today, valuing the company at RM1.3 billion. Its 52-week high/low was RM1.00/44 sen. — TMR
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