Central Asia Metals Plc · LSE:CAML
Central Asia Metals — H1 2016 Earnings Presentation
32 slides from Central Asia Metals's earnings presentation, September 2016
Slide 1: H1 2016 Results Presentation
H1 2016 RESULTS PRESENTATION September 2016
Slide 2: Disclaimer
DISCLAIMER This Document comprises an institutional update presentation (the “Presentation”) which has been prepared or regulatory requirement, and, in particular, it or any copy of it, should not be distributed directly or indirectly, by and is the sole responsibility of Central Asia Metals plc (th
Slide 3: H1 2016 Results and Update
H1 2016 RESULTS AND UPDATE H1 2016 interim dividend H1 2016 interim dividend 5.5p (H1 2015: 4.5p) Record six month copper production 6,908 tonnes (up 27% on H1 2015) 5.5p Gross revenue $30.9m (H1 2015: $30.3m), flat despite fall in copper price H1 2016 production C1 cash cost $0.40/lb (H1 20
Slide 4: Share Price Performance Since IPO
SHARE PRICE PERFORMANCE SINCE IPO 250 12,000 200 180 10,000 200 160 140 8,000 LME Copper (US$/t.) 150 120 Share price (p) Price (p) 6,000 100 100 80 4,000 60 50 40 2,000 20 0 0 0 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Ma
Slide 5: Financial Review
FINANCIAL REVIEW | NG!) aK" =a | mill Wil | Soares CENTRAL ASIA METALS PLC if} 1110111 eit lili
Slide 6: H1 2016 Income Statement
H1 2016 INCOME STATEMENT H1 H1 % FY GROSS REVENUE $30.9m 2016 2015 change 2015 Sales volumes reflect a full 6 month period of expanded production Sales, t 6,355 5,120 +24% 12,040 Average H1 sales price achieved $4,903/t Average sale 4,903 5,936 -17% 5,336 price, $/t PROFIT BEFORE TAX $15.0m Gros
Slide 7: H1 2016 Fully Inclusive Cost
H1 2016 FULLY INCLUSIVE COST FULLY INCLUSIVE COST $0.97/lb H1 H1 FY 2016 2015 % 2015 (H1 2015: $1.87/lb / FY 2015 $1.58/lb) $/lb $/lb change $/lb C1 cash cost 0.40 0.67 -40% 0.60 Depreciation C1 cost $0.15/lb MET & other 0.14 0.20 -30% 0.19 local taxes Cost of production MET and taxes $0.26/lb $0.14
Slide 8: H1 2016 C1 Cash Cost of Production
H1 2016 C1 CASH COST OF PRODUCTION Industry cash cost curve – costs H1 H1 FY 2016 2015 % 2015 5.00 remain in lowest quartile $/lb $/lb change $/lb 4.50 4.00 Payroll 0.08 0.15 -47% 0.13 2015 CASH COSTS 3.50 Cash cost $/lb Reagents 0.05 0.10 -50% 0.08 3.00 2.50 Power 0.05 0.11 -55% 0.09 2.00 1.50 Mate
Slide 9: Cash Flow
CASH FLOW H1 2016 CASH FLOW CASH FLOW SINCE IPO (2010) 17.4 (3.6) 60 (10.4) 250 50 (12.5) 144.9 (35.7) 200 42.0 40 (70.1) (2.3) 150 $m (0.4) 30.2 $m 30 4.6 (73.8) 100 20 59.0 10 50 30.2 1.3 - - Cash at 31 Cash Income tax Capex Dividend Cash settled Other Cash at 30 Cash pre IPO Net IPO Cash Income T
Slide 10: Kounrad Financial Performance to Date
KOUNRAD FINANCIAL PERFORMANCE TO DATE Total / H1 2016 2015 2014 2013 2012 average 50 months 6 months 12 months 12 months 12 months 8 months* Sales, Cu tonnes 46,630 6,355 12,040 11,163 10,689 6,383 Production, Cu tonnes 47,210 6,908 12,071 11,136 10,509 6,586 Average sale price, $/t 6,428 4,903 5,33
Slide 11: H1 2016 Balance Sheet
H1 2016 BALANCE SHEET 30 June 31 Dec Strong balance sheet, no debt 2016 2015 $m $m PPE 49.1 40.8 ASSET BASE Intangible assets 40.2 40.3 $89m of PPE and intangible assets Cash 30.2 42.0 Stage 2 Expansion construction works, on schedule & 25% under budget Other 9.5 10.0 Total assets 129.0 133.1 WO
Slide 12: Returns to Shareholders
RETURNS TO SHAREHOLDERS Returned $82m to shareholders Returns to shareholders pence £m $m 136% of funds raised at IPO 2012 share buyback (pre-div.) 1.2 2.0 returned to shareholders 2012 special, annual & interim 10.7 9.0 14.2 2013 interim & final 9.0 9.6 15.6 90 2014 interim & final 12.5 13.6 21.8 8
Slide 13: Operations Review
OPERATIONS REVIEW CENTRAL ASIA METALS PLC
Slide 14: H1 2016 Production Update and Outlook
H1 2016 PRODUCTION UPDATE AND OUTLOOK 4.0 50 45 3.5 H1 2016 Quarterly copper production (kt) Cumulative copper production (kt) 40 3.0 35 Record six month copper production 6,908t (27% 2.5 30 increase HoH) 2.0 25 20 At end H1 total copper production exceeds 47,000t 1.5 15 1.0 Copper cathode sal
Slide 15: Kounrad H1 2016 Operational Overview
KOUNRAD H1 2016 OPERATIONAL OVERVIEW 2012 2013 2014 2015 H1 2016 No LTIs in H1 2016 4.5p 12.5p Lost time injuries 0 0 1 2 0 Total LTI free hours now exceeds 1 million 9.0p Copper production, t 6,586 10,509 11,136 12,071 6,908 Record six monthly copper production, 6,908t Ave. PLS flow rate, M
Slide 16: Eastern Dump Resources, 2012-2019
EASTERN DUMP RESOURCES, 2012-2019 Dump 6 Tonnes In-situ Copper 14,610 Extracted to H1 2016 7,227 Forecast 224 Dump 5 Tonnes Expected recovery 51% In-situ Copper 60,774 Year 2016-17 Extracted to H1 2016 9,506 Forecast 17,842 Expected recovery Dump 7 Tonnes 45% Year 2016-18 In-situ Copper 43,060 Extra
Slide 17: Stage 2 Expansion into Western Dumps
STAGE 2 EXPANSION INTO WESTERN DUMPS Northern Dumps c.175,000t recoverable copper Expansion into Western Dumps, extends life of Eastern Dumps Kounrad operation beyond 2030 Leaching to commence Q2 2017 Western Dumps Phased increase in copper production from Western Kounrad plant Dumps as East
Slide 18: Stage 2 Expansion Update
STAGE 2 EXPANSION UPDATE Progressing on schedule and overall 95% complete 12km 10kV overhead power line and sub-station complete Construction of pump and boiler houses completed 3,000 concrete supports laid for 24km of PLS and raffinate pipelines Three 10,000m3 ponds excavated and lined
Slide 19: Social and Environmental Responsibility
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY HEALTH & SAFETY No lost time injuries in H1 2016, total LTI free man hours exceeds 1 million Govt. health and safety inspections undertaken in H1 2016 ENVIRONMENTAL Govt. environmental checks undertaken during H1 2016 Western Dumps environmental progra
Slide 20: Copper Bay Project, Chile (CAML 75%)
COPPER BAY PROJECT, CHILE (CAML 75%) PFS COMPLETED Q2 2015 15 JORC compliant indicated and inferred mineral resource 14 estimate of 51.2Mt at 0.24% Cu 13 Indicative metallurgical recoveries 72.8% NPV $50m at $3.00/lb Cu price DFS PROGRESS – Q4 2016 TARGET COMPLETION 15 Further drilling for r
Slide 21: Business Development
BUSINESS DEVELOPMENT Over 100 opportunities reviewed in the past two years Seeking to grow the company through value accretive transactions in base metals and to enhance CAML’s ECM profile The geographic focus encompasses Kazakhstan and Latin America, with flexibility on other jurisdictions ba
Slide 22: Outlook
OUTLOOK PROFITABLE BUSINESS EBITDA margins >50% C1 cash cost of production in lowest quartile STRONG BALANCE SHEET Cash balance $30.2m at 30 June 2016 No debt HEALTHY CASHFLOWS Maintain dividend policy Nigel StageHurst-Brown Nick Clarke 2 Expansion self-financed Non-Executive Chairmann a
Slide 23: Contacts
CONTACTS 11 Albemarle Street, London, W1S 4HH 11 Albemarle 11 +44 207 898 9001 info@centralasiametals.com Investor Relations contact Louise Wrathall louise.wrathall@centralasiametals.com www.centralasiametals.com 23
Slide 24: Appendices
APPENDICES CENTRAL ASIA METALS PLC
Slide 25: Structure and Ownership
STRUCTURE AND OWNERSHIP MAJOR SHAREHOLDERS AS OF 31 AUGUST 2016 Central Asia Metals Plc No. of shares % Holding (UK) MR KENGES RAKISHEV 21,211,751 19.01 HARGREAVE HALE 11,515,300 10.32 FIL INVESTMENT INTERNATIONAL 9,601,366 8.61 100% 100% 100% 75% CAML Sary Kazna LLP CAML MAJEDIE ASSET MGT 7,903,773
Slide 26: Board of Directors
BOARD OF DIRECTORS Robert Cathery Nick Clarke Nurlan Zhakupov Roger Davey Kenges Rakishev Non-Executive Director Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Nigel Hurst-Brown Gavin Ferrar Nigel Robinson David Swan Deputy Chairman Business Development Direc
Slide 27: Directors' Biographies
DIRECTORS’ BIOGRAPHIES Nick Clarke Executive Chairman Robert Cathery Non-Executive Director Nick has over 40 years of mining experience, including 16 years spent within senior management Robert became a member of the London Stock Exchange in 1967 and was managing director positions in production and
Slide 28: Returns to Shareholders: ROE and ROCE vs Peers
RETURNS TO SHAREHOLDERS ROE – UK quoted copper producers ROCE – UK quoted copper producers 45% 50% 40% 40% 35% 30% 30% 25% 20% 20% 15% * * 10% 10% 5% 0% 0% 2012 2013 2014 2015 2012 2013 2014 2015 -5% -10% -10% CAML ANTO KAZ FQM CAML ANTO KAZ FQM ROE average ROCE average CAML 17% 29% * 2012 CAML in p
Slide 29: Kounrad Resource
KOUNRAD RESOURCE* JORC Code (2004) Resource Estimate Northern Dumps by Wardell Armstrong Resource Quantity, Grade, Contained Category type Mt % copper, kt Eastern Dumps Eastern Dumps Indicated 89.7 0.10 85.8 Oxide† Inferred 79.6 0.10 81.7 Total 169.3 167.5 Western Dumps Western Dumps Indicated 275.4
Slide 30: SX-EW Technology Overview
SX-EW TECHNOLOGY OVERVIEW CAML SX-EW TEST WORK 2008-2011 PROCESS IN USE GLOBALLY Pilot in-situ leaching and SX-EW plant operational for three years More than ten operational dump-leach projects worldwide, including Chuquicamata, Los Bronces, El Chino and Silver Bell in Chile, Successful year-r
Slide 31: PLS and Groundwater Model
PLS AND GROUNDWATER MODEL Infiltration of acidic solution and precipitation through leach piles Monitoring & Monitoring & Abstraction Abstraction Material in Leach Piles K = 1.8 – 720 m/d Boreholes Boreholes Collector trench. Low permeability liner on down 50m 100m gradient side ALLUVIAL LAYER K = 0
Slide 32: Glossary
Glossary C1 cost - represents the cash cost incurred at each kV - kilovolt processing stage, from mining through to recoverable LTI - lost time injuries, a standard health and safety metal delivered to market, less net by-product credits (if measure any). Source: Wood Mackenzie definition ME