• The three SGX-listed gold mining stocks have averaged 4.6% gain on Wednesday, ranging from +2.9% for Anchor Resources to 5.9% for Wilton Resources.  
• All three SGX-listed gold mining stocks are at different stages of exploration and production and have all provided recent updates to their operations in the past fortnight.
• The SPDR® Gold Shares ETF gained 0.9% (1.5% in SGD) yesterday, bringing the one-month SGD equivalent total return to 4.8% and YTD gain to 19.2%.

SGX lists three gold mining stocks with a combined market capitalisation of more than S$400 million. The three stocks averaged a 4.6% total return yesterday. SPDR® Gold Shares ETF (traded in US Dollars) generated an SGD equivalent return of 1.5% yesterday which brought the one-month gain to 4.8% and year to date gain to 19.2%. Demand for gold as a haven asset jumped on the back of heightened political uncertainties during the US election and also jumped in the weeks before and after the Brexit vote on 23 June. As noted in the My Gateway report  on 27 June (click here), the World Gold Council (WGC) maintains that a key motivation for including gold in a portfolio has been gold’s history of maintaining low correlations to most other asset classes. In a report released last night, the WGC (click here) noted gold trading volumes rose sharply in Asia yesterday. In China, SGE volumes have surged to 330 tonnes, 102% higher than the level seen around the Brexit vote. The US listing of the SPDR® Gold Shares ETF also traded twice its 15 day average volume last night. The table below details the three largest gold mining stocks and SPDR® Gold Shares ETF. Note that clicking on a stock name will bring you to its profile page on SGX StockFacts.

Name	SGX Code	Market Cap in S$M	Price ($)	Total % Return for 9 Nov	Total Return 1 Mth %	YTD Total Return %
CNMC Goldmine Hldgs	5TP	220	0.540	4.9	3.9	192.6
Wilton Resources	5F7	161	0.072	5.9	2.9	24.1
Anchor Resources	43E	33	0.107	2.9	-2.7	-26.7
SPDR® Gold Shares ETF	O87	N/A	123.55	1.5*	4.8*	19.2*
Average				3.8%	2.2%	52.3%

*traded in USD & performances tabled in SGD terms. Source: SGX, Bloomberg & SGX StockFacts ( price data as of 9 Nov 2016) The Gold ETF is setup to reflect the performance of the price of gold bullion, less the fund’s expenses. It tracks LBMA Gold Price PM, and the physical gold bullion is kept in the form of London Good Delivery bars. Also like stocks, the SPDR® Gold Shares ETF is now designated as a non-Specified Investment Product, as is thus an Excluded Investment Product (EIP), accessible to anyone without pre-qualification. The rule of thumb is that if the ETF is an EIP, it implies the ETF is less complex, and there are fewer unique risks than those involving an ETF categorised as an SIP. For the usage of CPF monies, other than the first S$20,000 in the Ordinary Account which cannot be used for investment purpose, investors can also place up to 10% of investible Ordinary Account money in SPDR® Gold Shares ETF. Organisations of all sizes are involved in the minerals industry – from very large multinational public companies and state-owned corporations involved in mining many commodities to small public and private companies exploiting a single deposit, as well as those purely involved in exploration. While gold stocks have a high correlation to physical gold, they are typically considered leveraged plays on the metal. In addition to gold prices, there are also many other factors (eg. corporate activity, currency, gold discovery, earnings power, operating efficiencies etc.) which will impact the price of gold stocks. Mining companies may also often take up to 10 years or longer to develop their gold mining projects and bring them to production. This means they cannot easily respond to immediate market conditions. As the process of gold exploration could be expensive, some smaller companies may also need to do additional fundraising to finance this stage of development. CNMC Goldmine Holdings CNMC Goldmine Holdings engages in the exploration, development, mining, and marketing of gold in Malaysia. The company primarily focuses on the Sokor Gold Field project, which covers an area of approximately 10 square kilometers located in the district of Tanah Merah, Kelantan. It also processes mined ore into gold dores. On Monday, CNMC Goldmine reported a 47% Rise in Net Profit for First 9 Months of 2016 with a marginal profit drop in 3Q2016 with lower revenue and higher costs arising from a stop-work order. CNMC had to halt operations at its flagship Sokor gold field (“Sokor”) for seven days after regulators issued the stop-work order on 19 July 2016 to review its application for large-scale operation status and the extension of Sokor’s mining lease. The Company took another 14 days to restart the entire production process after the stop-order order was lifted on 25 July 2016. The application was approved in August 2016, allowing CNMC to mine for unlimited amounts of ore at Sokor until 31 December 2034. For more information more click here. Wilton Resources Corporation Wilton Resources Corporation engages in the exploration, mining, and production of gold in Indonesia. It holds interest in the Ciemas Gold Project comprising two concession blocks covering a total area of 3,078.5 hectares located in Sukabumi Regency, West Java Province of Indonesia. The company is also involved in general trading, transportation, construction, real estate, logging, farming, plantation, forestry, electrical, mechanical, computer, workshop, and printing businesses. During the financial year ended 30 June, Wilton Resources continued to work towards the commencement of commercial production. The pilot production plant is expected to commence production in 3Q FY2017, and the feedback and information from it is expected to provide useful input for the Group’s full-scale mining and processing operations - more information can be found here. On 28 October, Wilton Resources Corporation reported unaudited consolidated earnings results for the first quarter ended September 30, 2016. For the quarter, loss before tax was IDR 10,413 million against IDR 6,912 million a year ago. Loss after tax was IDR 10,413 million against IDR 6,912 million a year ago. Diluted loss per share attributable to shareholders was IDR 0.05 against IDR 0.03 a year ago. Anchor Resources Anchor Resources, engages in the exploration, mining, processing, production, and sale of gold and related minerals. The company holds interests in the Lubuk Mandi mine and Bukit Panji property located in Terrenganu, Malaysia. It also provides mining consultancy services. On 7 November, Anchor Resources announced it had made progress in its further development plans for hardrock mining and processing at its Lubuk Mandi Mine in Terengganu, Malaysia. A new ball mill system with a daily processing capacity of 600 tons of hard rock ore was purchased and installed on-site at the Lubuk Mandi Mine and is currently undergoing commissioning. The new ball mill equipment costs of RM 2.16 million (approximately SGD 0.72 million) were funded by the proceeds of the initial public offering – for more details click here. Anchor Resources also provided additional disclosure (click here) as required for mineral, oil and gas companies pursuant to Rules 705(6) and 705(7) of the Listing Manual Section B: Rules of Catalist.

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