By Asia Analytica / The Edge Financial Daily | July 21, 2016 : 10:43 AM MYT
This article first appeared in The Edge Financial Daily, on July 21, 2016.
Borneo Oil Bhd (-ve)
SHARES in Borneo Oil Bhd (fundamental: 2/3, valuation: 1.7/3) gained half a sen or 2.7% to close at 19 sen yesterday, after 92.34 million shares were traded. In comparison, it has a 200-day average volume of 21.47 million shares.
This was the fourth time the company was picked by our proprietary algorithm since the beginning of July. Year to date, its share price has increased by 18.75%.
Borneo Oil on Tuesday announced that its wholly-owned subsidiary Borneo Oil and Gas Corp Sdn Bhd’s first phase of exploration of its Bukit Ibam gold prospect had inferred gold resources of about 60,814 troy ounces (1,891.5kg). It said the setting up a pilot facility in Bukit Ibam is under way, with an initial capital investment cost of RM2.5 million.
The plant is targeted to be completed by end-August, and commercial operations will begin in September this year.
Based on its current share price, which gives it a market capitalisation of RM540.13 million, Borneo Oil is trading at a trailing price-earnings ratio of 9.19 times.
BORNOIL (7036) - Stock With Momentum: Borneo Oil