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Monday 12th of September 2016

Central Asia Metals plc Interim Results

By Aim Listing

C Asia Metals plc is pleased to announce its unaudited interim results for the six months ended 30 June 2016.

The Company is also pleased to declare an interim dividend of 5.5 pence per ordinary share (H1 2015: 4.5 pence), which equates to 26% of gross revenue for the period.                                                                                                                                                                                                                     

Operational Highlights

  • H1 2016 copper production of 6,908 tonnes, an increase of 27% vs. H1 2015 (5,444 tonnes)
  • H1 2016 copper sales of 6,355 tonnes, an increase of 24% vs. H1 2015 (5,120 tonnes)
  • No Lost Time Injuries ("LTIs") in the period and LTI free hours now exceed one million man hours
  • Average SX-EW plant availability of over 98%
  • Stage 2 Expansion, on schedule and approximately 25% under budget

 

Financial Highlights 

  • H1 2016 gross revenue of $30.9 million (H1 2015: $30.3 million)
  • Average copper price received of $4,903 per tonne (H1 2015: $5,936 per tonne)
  • Continued focus on maintaining low costs of production: C1 cash costs of production down 40% vs. H1 2015 to $0.40 per pound (H1 2015: $0.67 per pound) Fully absorbed unit costs down 48% vs. H1 2015 to $0.97 per pound (H1 2015: $1.87 per pound)
  • H1 2016 EBITDA of $17.4 million (H1 2015: $16.0 million) and a margin of 56% (H1 2015: 53%)
  • H1 profit before tax up 49% vs. H1 2015 to $15.0 million (H1 2015: $10.1 million)
  • 2016 interim dividend of 5.5 pence per ordinary share to be paid on 28 October 2016 (H1 2015: 4.5 pence)
  • Group cash balance of $30.2 million as at 30 June 2016 (31 December 2015: $42.0 million), with no debt

 

Business Development

  • Copper Bay Definitive Feasibility Study ("DFS") underway, results due Q4 2016
  • Management continues to look for additional growth opportunities

 

Outlook 

  • On track to achieve 2016 production guidance of between 13,000 and 14,000 tonnes
  • Continued focus on operational and capital cost discipline in current challenging commodity price environment
  • Kazakhstan Tenge devaluation helps support low cost of production
  • Stage 2 Expansion 25% under budget and completion on track for Q4 2016, with leaching of the Western Dumps to commence in Q2 2017

 

Nick Clarke, Executive Chairman, commented:

"I am pleased to report another record period of copper production, resulting in a continued strong financial performance for the Group. Indeed, during a time when the copper price has remained under considerable pressure, we have today reported a 49% increase in profit before tax when compared to H1 2015. The devaluation of the local currency, the Kazakhstan Tenge, has been a key factor in our reduced C1 cash costs of production and we are proud to be one of the very lowest cost copper producers in the world.

"While the devaluation of the local currency has helped CAML to maintain low costs of production, it has brought some economic challenges for our staff. We place great importance on our corporate social responsibilities and, as a result, we increased wages for our Kazakhstan based employees by 25% from January 2016. Meanwhile, we continue to focus on supporting local communities through health, education and charitable donations.

"At a time when many mining companies are cutting costs, we are pleased to be rewarding our investors with a dividend of 5.5 pence per share for the interim period. Once this dividend is paid, we will have returned over 135% of the $60 million raised at IPO through dividends and share buy backs."

Further details about CENTRAL ASIA click here