Central Asia Metals Plc · LSE:CAML
Central Asia Metals — FY2023 Earnings Presentation
46 slides from Central Asia Metals's earnings presentation, March 2024
Slide 1: Maintaining a solid platform for growth
Maintaining a solid platform for growth 2023 RESULTS 1
Slide 2: Disclaimer
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 DISCLAIMER The information contained in this confidential document (“Presentation”) has been prepared by Central Asia Metals plc (the “Company”). It has not been fully verified and is subject to material updating, revision and further
Slide 3: Company Overview
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 COMPANY OVERVIEW
Slide 4: CAML Operations
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 CAML OPERATIONS KOUNRAD, Kazakhstan (100%) - In-situ dump leach and SX-EW processing facility, central Kazakhstan - In production for 12 years - Life of operation to 2034 SASA, North Macedonia (100%) - Underground zinc and lead mine, n
Slide 5: Financial Highlights: Solid financial performance with significant capital investment
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 2023 FINANCIAL Solid financial performance with HIGHLIGHTS significant capital investment Financial highlights Revenue EBITDA FCF Capital Investment $207.4m $96.5m $57.5m $27.8m Cash 2023 Full Dividend 2023 Dividends Debt free $57.2m 1
Slide 6: Operational Highlights
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 2023 CAPITAL INVESTMENT $27.8M OPERATIONAL HIGHLIGHTS Kounrad 2023 Copper Production 13,816t – Completion of the Solar Power Project with total expenditure of $3.1m 2023 Zinc Production – Renewable energy production to supply site 20,3
Slide 7: Our Investment Case
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 OUR INVESTMENT CASE Responsibility Productivity Sustainability Profitability Accountability Dependability Governance and Productivity and Sustainability is Strong EBITDA We deliver reliable Dividend policy of stewardship play efficienc
Slide 8: Our Purpose-Driven Approach
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 OUR PURPOSE-DRIVEN APPROACH Our purpose is to produce base How we measure our success metals, essential for modern Measuring success through Key Performance living, profitably in a safe and Indicators (‘KPIs’) and ensuring these are su
Slide 9: Financial Results
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 FINANCIAL RESULTS
Slide 10: Market Conditions
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 MARKET CONDITIONS Commodity markets Inflation impacts – Lower commodity prices contrast strong prices in 2022 – Inflation rates were 9.8% in Kazakhstan and 9.4% in – Copper – price weakened despite strong demand in China North Macedoni
Slide 11: 2023 Income Statement
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 2023 INCOME STATEMENT EBITDA, $96.5m - margin 47% – Gross revenue 11% lower YoY – Kounrad gross revenue $116.3m (2022: $123.7m) – Sasa gross revenue $91.1m (2022: $108.5m) – Lower commodity prices mainly zinc (-24%) – Impact of cost in
Slide 12: EBITDA 2023 vs 2022
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 EBITDA 2023 VS 2022 96.5 12
Slide 13: 2023 Kounrad C1 Copper Cash Cost
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 2023 KOUNRAD C1 COPPER CASH COST 2023 C1 cash cost $0.74/lb Cost 2023 2022 2023 2022 (2022: $0.65/lb) $m $m $/lb $/lb $0.09/lb cost increase, includes: Reagents 3.3 3.0 0.11 0.09 – Increase in payroll costs by $0.04/lb following Power
Slide 14: 2023 Sasa Run of Mine Costs
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 2023 SASA RUN OF MINE (‘ROM’) COSTS 2023 RoM unit cost $58.6/t C1 cash cost 2023 2022 2023 2022 (2022: $55.6/t) $m $m $3.0/t increase, includes: RoM, t 805,621 806,069 - Increase in payroll costs driven by pay rises and higher headcoun
Slide 15: 2023 Capex
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 2023 CAPEX 2023 capex $27.8m (2022: $17.4m) 2024E capex – Materially within 2023 guidance $22-24m Sasa sustaining capex $8.7m, includes – Underground development, $2.8m – Flotation equipment, $1.7m – Underground mining equipment inc. U
Slide 16: 31 December 2023 Balance Sheet
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 31 DECEMBER 2023 BALANCE SHEET Capital investment for the future 31 Dec 31 Dec 2023, $m 2022, $m – Increase in PPE and other assets reflects 2023 and PPE 338.1 322.0 2024 Capital Projects Intangible assets 25.4 26.6 – Strong cash posit
Slide 17: 2023 Cash Flow
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 2023 CASH FLOW 2023 FCF of $57.5m 57.2 17
Slide 18: Kounrad Copper Operation
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 KOUNRAD COPPER OPERATION
Slide 19: Kounrad Copper Operation
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 KOUNRAD COPPER OPERATION Kounrad Eastern Mine Dumps 7 5 6 2 20 SX-EW 9-10 plant 13 Western Dumps 21a 15 1a 16 Kounrad village 22 19
Slide 20: In-situ Dump Leach and SX-EW Plant
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 IN-SITU DUMP LEACH AND SX-EW PLANT Guidance and production Western Dumps • 2024 guidance, 13,000t – 14,000t • Average dump height 40m • 2023 copper production, 13,816t • Average leach time 20 months Eastern Dumps • Average copper recov
Slide 21: Solar Power Project
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 SOLAR POWER PROJECT - Completed on time and below budget - Contributes an average of 8% of the daily power requirement - Long-term reduction forecast, 16-18% - Will reduce Scope 1 and 2 GHG emissions by c.10% versus 2020 - Final capita
Slide 22: Sasa Zinc and Lead Mine
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 SASA ZINC AND LEAD MINE
Slide 23: Sasa Zinc and Lead Mine
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 SASA ZINC AND LEAD MINE - Skarn hosted deposit in North Macedonia - Underground mine - Historically a sub-level caving operation - Transitioning to a combination of cut and fill and longhole stoping with high density paste fill - Reser
Slide 24: Sasa Production and Capital Investment
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 SASA PRODUCTION AND CAPITAL INVESTMENT 2024 guidance - Ore mined, 790,000-810,000t Unit 2023 2022 2021 - Zinc in concentrate, 19,000 – 21,000t - Lead in concentrate, 27,000t – 29,000t Ore mined t 805,621 806,069 818,609 Sasa Capital Pr
Slide 25: PB Plant
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 PB PLANT PB Plant ⁃ PB Plant, associated surface and underground infrastructure complete ⁃ Fully operational ⁃ Underground reticulation system continuing as mine opens new production areas ⁃ Full complement of 16 staff ⁃ Ramping up to
Slide 26: DST Plant and Landform
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 DST PLANT AND LANDFORM 2023 Progress ⁃ 95% of equipment on site ⁃ Construction advanced ⁃ Earthworks completed ⁃ Concrete laid ⁃ Steelworks nearing completion ⁃ Vegetation cleared for landform ⁃ On track for cake placement in 2024 ⁃ Dr
Slide 27: Central Decline Development
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 CENTRAL DECLINE DEVELOPMENT 2023 Progress ⁃ Now operational ⁃ Phase 1 completed Q2 2023 ⁃ During 2023, 1,056m developed ⁃ Improved productivity by reduced haulage cycle time due to shorter distances ⁃ New paste fill reticulation line i
Slide 28: Geology and Exploration
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 GEOLOGY AND EXPLORATION SASA MINE LONG SECTION 28
Slide 29: Sasa Resources and Reserves
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 SASA RESOURCES AND RESERVES A TRACK RECORD OF EXPLORATION SUCCESS AND CONVERSION - 2022 year-end Sasa Ore Reserve 2023 Mt Pb% Zn% Pb kt Zn kt tonnage, 8.8Mt Probable 9.0 4.0 2.6 359 236 - During 2023, Sasa mined 806Kt of ore reserves T
Slide 30: Sustainability
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 MSCI ESG Rating A Sustainalytics MEDIUM CDP Climate Change Score B- SUSTAINABILITY
Slide 31: Sustainability Summary
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 SUSTAINABILITY SUMMARY 2023 HIGHLIGHTS Environment Health and Safety Kounrad Foundation - Kounrad Solar Power Project - Updated health and safety – Developed community completed systems and processes for sustainable development plan fo
Slide 32: Growth
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 GROWTH
Slide 33: CAML Business Development Update
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 CAML BUSINESS DEVELOPMENT UPDATE Strategy Developing our pipeline 2023 activity summary Type of opportunity - CAML X – NewCo set up, 80% CAML, 20% exploration partners - Earlier stage exploration 37 opportunities - Licence applications
Slide 34: Investment in Aberdeen Minerals
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 INVESTMENT IN ABERDEEN MINERALS PROMISING COPPER AND NICKEL EXPLORER IN SCOTLAND Investment into focused junior explorer, with Funding will enable: Arthrath Project and regional targets in Aberdeenshire, Scotland • 10,000m Arthrath dri
Slide 35: Outlook
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 OUTLOOK 2024 OUTLOOK - On track for strong base metals production – Production guidance of: – Copper, 13,000 to 14,000 tonnes – Zinc in concentrate, 19,000 to 21,000 tonnes – Lead in concentrate, 27,000 to 29,000 tonnes – Completion of
Slide 36: Contact Details
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 CONTACT DETAILS GROUP INVESTOR RELATIONS MANAGER Emma Chetwynd Stapylton 36 Carnaby Street London W1F 7DR ec@caml.uk +44 (0) 207 898 9001 www.centralasiametals.com
Slide 37: Appendices
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 APPENDICES
Slide 38: Share Price/Shareholders
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 SHARE PRICE/SHAREHOLDERS SHARE PRICE PERFORMANCE VERSUS PEERS Share price* (AIM:CAML) 185.8 pence Total no. voting shares 181,904,941 280 Treasury shares 193,325 260 Issued shares 182,098,266 240 Market capitalisation £331.1m 220 Free
Slide 39: Board of Directors
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 BOARD OF DIRECTORS Mike Prentis Nick Clarke Nigel Robinson Gavin Ferrar Roger Davey David Swan Senior Independent Director Non-Executive Chairman CEO CFO NED NED Chair - technical experience - accounting experience NED - Nomination Com
Slide 40: Our Emissions
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 N2O NF3 OUR CO2 HFCs SF6 EMISSIONS CH4 PFCs Scope 3 Scope 1 Scope 2 Scope 3 Employee Explosives Purchased Transport and Our GHG emissions are commuting electricity distribution classified under scope 1, 2 Purchased and 3 generated acro
Slide 41: Copper – Supply Deficit Supports Price
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 COPPER – SUPPLY DEFICIT SUPPORTS PRICE Early 2024 market steadiness Copper Market Balance 600 $10,000 – Year to date highs of c$9,000/t in March Surplus / (Deficit) (ktpa) – Copper prices remain stable above the US$8,000/t mark 400 $8,
Slide 42: Zinc Market Remains Tight
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 ZINC MARKET REMAINS TIGHT Zinc Market Balance Tight demand and supply 1,000 $4,000 – Positive start to 2024 – prices c/ $2,600/t in January Surplus / (Deficit) (ktpa) – Tightened supply market with low stock levels and improving 600 $3
Slide 43: Lead – Steady Performer
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 LEAD – STEADY PERFORMER Lead prices under pressure in the near-term Lead Price Chart $2,600 – Strong demand since Q1 2023 – prices c/$2,000/t $2,400 - due to strong demand for lead-acid batteries (LABs) in China (automotive sector) $2,
Slide 44: 11 Years at Kounrad
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 11 YEARS AT KOUNRAD SINCE BUILDING THE KOUNRAD OPERATION IN 2012 – Generating gross revenue over $1 Employed Employed billion 347 staff – Generating EBITDA of $774.1 million 100% locally – Established the Kounrad Foundation – Average C
Slide 45: Six Years at Sasa
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 SIX YEARS AT SASA SINCE ACQUIRING THE SASA OPERATION IN NOVEMBER 2017 – Total CAPEX of $79.8 million Employed – Generating EBITDA of $337.2 million 773 staff 98% locally – All debt has been repaid – Established the Sasa Foundation Gene
Slide 46: 2023 C1 Cash Cost
CENTRAL ASIA METALS PLC | 2023 RESULTS PRESENTATION | MARCH 2024 2023 C1 CASH COST % 2023 2022 2021 change Kounrad Cu C1 cash cost, 0.74 0.65 0.57 +14% $/lb Sasa Zn eq. C1 cash cost, 0.68 0.78 0.63 -13% $/lb Cu eq. production, t 25,452 27,656 26,000 -8% CAML Cu eq. C1 cash 1.63 1.39 1.32 +17% cost,