Central Asia Metals Plc · LSE:CAML
Central Asia Metals — Investor Presentation (2021)
29 slides from Central Asia Metals's investor presentation, 2021
Slide 1: CAML Q2 2021 Corporate Presentation
CAML Q2 2021 CORPORATE PRESENTATION
Slide 2: Disclaimer
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 amendment. This Presentation has not been approved by an authoris
Slide 3: Central Asia Metals (CAML) Operations
CENTRAL ASIA METALS (CAML) OPERATIONS KAZAKHSTAN - Population, 18.3 million - GDP per capita, $11,165 NORTH MACEDONIA - Population, 2.1 million - GDP per capita, $6,143 SASA (100%) KOUNRAD (100%) - Underground zinc and lead mine, northeast North Macedonia - In-situ dump leach and SX-EW processing fa
Slide 4: 2020 Results Highlights
2020 RESULTS HIGHLIGHTS 2020 revenue 2020 EBITDA Strong performance in a challenging year - Total 2020 dividend 14p (2019: 6.5p) $170.3m $95.7m - includes proposed final dividend of 8p (2019: 0p) 2019: $180.8m 2019: $108.6m - Solid 2020 production 2020 net debt 2020 gross debt - Strong 2020 EBITDA m
Slide 5: Sustainability
SUSTAINABILITY CENTRAL ASIA METALS PLC
Slide 6: 2020 Sustainability Activities Update
2020 SUSTAINABILITY ACTIVITIES UPDATE Key activities and initiatives - Employee and community COVID-19 support - Publish inaugural Sustainability Report, Q2 2020 - Undertook stakeholder engagement exercise with consultants, ERM, leading to development of materiality matrix - Develop and publish of G
Slide 7: Economic Value Distributed
ECONOMIC VALUE DISTRIBUTED Producing copper from waste in Kazakhstan A profitable business - CAML is a robust business, and this underpins our ability to generate value for our stakeholders - We do not make political donations - Total tax paid in Kazakhstan since copper production commenced, $163m -
Slide 8: 2020 Performance Against Targets
2020 PERFORMANCE AGAINST TARGETS Sustainability 2020 target 2020 target 2021 / long-term target topic achieved? Deliver audit plan for suppliers and Governance contractors to ensure responsible supply Yes Zero human rights abuses chain Zero fatalities Yes Zero fatalities Health and safety 15% reduct
Slide 9: Alignment to Sustainable Development Goals
ALIGNMENT TO SUSTAINABLE DEVELOPMENT GOALS SDG CAML Commitment End poverty in all its forms We prioritise local employment in regions where opportunities are sparse everywhere and are committed to providing support to the communities close to our operations, where it is needed. Through the transpare
Slide 10: Sustainability Materiality Matrix
SUSTAINABILITY MATERIALITY MATRIX STAKEHOLDER ENGAGEMENT UNDERTAKEN BY ERM 3 Increasing importance Energy usage and climate Health and Safety change wellbeing Social economic Water benefit management Community engagement (Degree of stakeholder concern) 2 and development Labour Relations External Vie
Slide 11: Maintaining Health and Safety
MAINTAINING HEALTH AND SAFETY Sasa 2020 2020 2020 2019 - 0 LTI Sasa Kounrad CAML CAML - 1 MTI (injured finger) No. lost time injuries (LTI) 0 0 0 1 - No occupational health issues No. medical treatment injuries (MTI) 1 0 1 1 identified - 3 Employees currently with COVID-19 No. recordable injuries (R
Slide 12: Caring for the Environment
CARING FOR THE ENVIRONMENT Group GHG emissions reduced YoY 120,000 4.00 - Lower coal consumption at Kounrad resulted in 3.50 reduction of GHG emissions from 102,315tCO2-e in 100,000 3.19 3.28 3.37 2019 to 98,068tCO2-e in 2020 3.00 - GHG emission intensity increased due to lower copper equivalent ton
Slide 13: TSF4 - River Remediation Work Progressing
TSF4 - RIVER REMEDIATION WORK PROGRESSING Phase 1 complete Good progress made with river clean-up - TSF4 2020 cost, $0.7m (plus $0.2m capitalised) - 2022E cost $<0.5m - Wardell Armstrong advised on river remediation programme - Community relations remain strong - Kamenica River remediation commenced
Slide 14: Riverside 'Youth Park' Project
RIVERSIDE ‘YOUTH PARK’ PROJECT Sasa Foundation established Q1 2021 Conceptual design - CAML plans to develop riverside youth park along banks of the Kamenica River which runs through Makedonska Kamenica, the town closest to Sasa - Conceptual design by two local architects - Project will create trail
Slide 15: Unlocking Value for Our Communities
UNLOCKING VALUE FOR OUR COMMUNITIES Sasa community support ($0.3m) Kounrad Foundation spend ($0.2m) - COVID-19 support ($0.2m) - COVID-19 support ($0.1m) - Community and medical staff PPE provisions, food and - Purchase of PCR machine for Balkhash Central Hospital, hygiene donations, purchase of new
Slide 16: Operations
OPERATIONS
Slide 17: Kounrad Copper Operation
KOUNRAD COPPER OPERATION Eastern Dumps 7 6 2 5 20 Kounrad mine 9-10 SX-EW 13 plant 21a Western 15 Dumps 1a 16 Kounrad village Remaining recoverable resources Eastern Dumps c.10,000t 22 Western Dumps c.130,000t Total c.140,000t Central Asia Metals PLC 16
Slide 18: Kounrad Production
KOUNRAD PRODUCTION In-situ dump leach and SX-EW plant 4.5 120 4.0 Quarterly copper production (kt) - Met increased 2020 guidance 100 Cumulative copper production (kt) 3.5 - 2020 copper production, 13,855t 3.0 80 2.5 - 2021 guidance, 12,500t – 13,500t 60 2.0 - Q1 2021 copper production, 2,880t 1.5 40
Slide 19: 2020 Kounrad C1 Copper Cash Cost
2020 KOUNRAD C1 COPPER CASH COST 2020 C1 cash cost $0.51/lb (2019: $0.52/lb) Cost 2020 $m 2020 $/lb 2019 $m 2019 $/lb Local G&A, $0.06/lb Reagents 2.4 0.08 2.6 0.08 Power 2.0 0.07 1.9 0.06 Realisation, $0.08/lb Payroll 4.0 0.13 3.5 0.12 Processing , $0.37/lb Materials 1.1 0.03 1.1 0.04 Consulting 1.
Slide 20: Sasa Zinc and Lead Mine
SASA ZINC AND LEAD MINE Long life of mine N - Reserves and resources to 2037 - Skarn hosted deposit - Mechanised underground mine - Currently, sub-level caving operation, with transition to cut and fill planned - Single boom jumbos and diesel loaders - Currently, ore either trucked 0km 1km (30%) or
Slide 21: Sasa Production Update
SASA PRODUCTION UPDATE Solid 2020 performance Unit Q1 2021 2020 2019 2018 - Zinc in concentrate, 23,815t - Lead in concentrate, 29,742t Ore mined t 207,788 826,421 817,714 803,101 Q1 2021 production Plant feed t 210,413 820,215 820,491 804,749 - Zinc in concentrate, 5,742t Zinc grade % 3.23 3.37 3.2
Slide 22: 2020 Sasa C1 Zinc Eq. Cash Cost
2020 SASA C1 ZINC EQ. CASH COST 2020 C1 cash cost $0.50/lb (2019: $0.47/lb) 2020 2019 2020 2019 C1 cash cost Processing , $m $m Mining , $0.15 $0.08 Zinc payable - - 20,008t 19,601t production Pro-rata costing zinc - - 38% 41% Mining 17.1 17.3 $0.15/lb $0.16/lb Local G&A , $0.05 Realisation , $0.22
Slide 23: Cut and Fill Project Update
CUT AND FILL PROJECT UPDATE Dedicated Capital Projects Team developed - Decline equipment ordered, to arrive in Q2 2021 - Tendering process underway for backfill building - Reticulation materials ordered - Local consultants, Atrium, retained to undertake design documentation for services permits (pi
Slide 24: Strategy
STRATEGY CENTRAL ASI METALS PLC
Slide 25: Our Purpose-Driven Approach
OUR PURPOSE-DRIVEN APPROACH OUR PURPOSE SHAPES OUR BUSINESS MODEL AND OUR STRATEGIC DECISIONS. IT IS UNDERPINNED BY OUR VALUES WHICH INFORM THE BEHAVIOUR AND STANDARDS EXPECTED OF ALL OUR COLLEAGUES IN THE BUSINESS. TOGETHER THESE DETERMINE HOW WE EMPLOY THE INPUTS TO THE BUSINESS TO IDENTIFY AND DE
Slide 26: Capital Allocation
CAPITAL ALLOCATION Returns to shareholders Deleveraging - 2020 full year dividend, 14p (8p final, 6p interim) - 57% of FCF - CAML dividend policy, 30-50% FCF - Total dividends since 2012, $209.6m or 112p 225 112p 200 80.4 175 150 125 $m 100 75 50 25 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cum
Slide 27: Capital Allocation Contd.
CAPITAL ALLOCATION CONTD. Investment in the business Growth opportunities - Cut and Fill Project at Sasa achieves: - Maintain focus on business development activities - Safer operation - Size and liquidity becoming more important considerations - Maximum extraction of mineral resources - Improved ta
Slide 28: Outlook
OUTLOOK A strong sustainable business - Strong operational performance - Low cost production - Producing the metals essential for modern living safely and sustainably - Capital allocation priorities - 2020 full year dividend, 14p - Deleveraging - Implementation of Sasa Cut and Fill project underway
Slide 29: Contact Details
DIRECTOR OF CORPORATE RELATIONS CONTACT Louise Wrathall Sackville House DETAILS 40 Piccadilly London W1J 0DR louise.wrathall@centralasiametals.com +44 (0) 207 898 9001 https://www.centralasiametals.com/