Central Asia Metals PLC – 2018 Full Year Results

Central Asia Metals PLC – 2018 Full Year Results

Central Asia Metals plc (AIM: CAML) today announces its full year results for the 12 months ended 31 December 2018.

2018 Financial Summary

  • 2018 dividend of 14.5 pence per share (2017: 16.5 pence)
    -  Includes final proposed dividend of 8 pence (2017: 10 pence)
    Represents 44% of 2018 adjusted free cash flow, in line with dividend policy
  • Group gross revenue of $204.2 million (2017: $106.5 million)
  • Group EBITDA of $125.3 million (2017: $53.9 million)
  • Group EBITDA margin of 61% (2017: 51%)
  • Sasa 2018 C1 zinc equivalent cash cost of $0.46 per pound (2017: $0.44 per pound)
  • Kounrad 2018 C1 cash cost of $0.54 per pound (2017: $0.52 per pound)
  • EPS from continuing operations of 31.33 cents (2017: 29.08 cents)
  • Group net debt as at 31 December 2018 of $110.3 million (2017: net debt of $138.9 million)
    Cash in the bank as at 31 December 2018 of $39.0 million (2017: $45.8 million)
    2018 gross debt repayments of $38.5 million

2018 Operational Summary

Sasa

  • Zinc in concentrate production of 22,532 tonnes (2017: CAML attributable 3,625 tonnes)
  • Lead in concentrate production of 29,388 tonnes (2017: CAML attributable 4,951 tonnes)

Kounrad

  • Copper production of 14,049 tonnes (2017: 14,103 tonnes)
  • 64% of 2018 production from Western Dumps

2019 Outlook

  • Kounrad copper production guidance, between 12,500 and 13,500 tonnes
    Approximately 70% of 2019 copper production to be leached from Western Dumps
  • Sasa production guidance
    Zinc, between 22,000 and 24,000 tonnes
    Lead, between 28,000 and 30,000 tonnes
  • Capex at Sasa expected to reduce to c.$10 million for the current financial year, with minimal sustaining capex of c.$2 million at Kounrad going forward

 Nigel Robinson, Chief Executive Officer, commented:

"2018 was the first full year that we have operated both Kounrad and Sasa, and we are pleased to report a successful year at both sites, with on-guidance production and strong Group financial results. In acquiring Sasa we have demonstrated a 132% increase in EBITDA to $125.3 million since 2017, at a broadly maintained EBITDA margin of 61% (2017: 51%, or 62% adjusted to exclude Sasa acquisition costs), despite an average 20% fall in the basket price of our base metals.

"EBITDA per share increased year on year by 65% and EPS from continuing operations rose by 8% from 2017 to 31.33 cents. We believe that, while taking other factors into account, these increases demonstrate the accretive nature of the Sasa acquisition. 

"Since operations commenced at Kounrad in 2012, we have consistently delivered copper output at a C1 cash cost of production that is amongst the lowest globally and, for 2018, was $0.54 per pound (2017: $0.52 per pound). Including our base metals production from Sasa, we are pleased that our average Group copper equivalent C1 cash cost of production at $0.87 per pound is firmly within the lowest industry quartile.

"We are pleased to propose an 8 pence per share final dividend, equating to a full year dividend of 14.5 pence. Once the final dividend has been paid, the Company will have returned $162 million to its shareholders in the last seven years. The full year dividend represents 44% of our 2018 adjusted free cash flow and is therefore in line with our new policy of returning to our shareholders between 30% and 50% of our annual free cash flow. With low cost production from both operations, we are confident that we can continue to offer attractive returns to shareholders in 2019 and beyond.

"We move into 2019 as a highly cash generative resources company with two low cost operations producing three base metals with attractive market fundamentals. We believe that this forms the basis of an excellent platform from which to once again grow by acquisition, and we are encouraged by the quality of some of the opportunities that we are reviewing."

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