Cvk Maden Isletmeleri Sanayi Ve Ticaret A.s · BIST:CVKMD
Cvk Maden Isletmeleri Sanayi Ve Ticaret A.s — Q4 2023 Earnings Presentation
41 slides from Cvk Maden Isletmeleri Sanayi Ve Ticaret A.s's earnings presentation, May 27, 2024
Slide 1: Investor Presentations 4Q 2023
Türkiye’nin Cevheri INVESTOR PRESENTATIONS 4Q 2023 27.05.2024
Slide 2: Agenda
01 02 03 04 05 Overview Activities Investment Financials Expectations Page 3 Page 8 Page 14 Page 18 Page 32
Slide 3: 2023 Q4 Main Headlines
2023 Q4 MAIN HEADLINES Export: Export Rate in 2023 is 77.8% Financials: Solid Financial Data Indebtedness: Low Indebtedness Creates Significant Borrowing Growth: Strong EBITDA Expected in 2024
Slide 4: Overview
OVERVİEW 40+ Years ~77,8% Mining Experience Export Rate 20% 515 m TL Free Float Rate Investment Amount (Investment/Sales: 29%) ~39,8% 17 EBITDA Margin License Field 607 m TRY 31.589 Ha. Net Cash Position License Area
Slide 5: CVK Mining at a Glance – Annual
CVK MINING AT A GLANCE – ANNUAL Net Sales EBITDA Net Profit (million TRY) (million TRY) (million TRY) 1.896,4 891,3 630,9 1.778,8 707,6 301,8 2022/12 2023/12 2022/12 2023/12 2022/12 2023/12 Gross Profit Margin EBITDA Margin Net Profit Margin 54,6% 47,0% 33,3% 44,7% 39,8% 17,0% 2022/12 2023/12 2022/1
Slide 6: Board of Directors, Shareholding Structure
Board of Directors 2023/12 Performance Sum. Hüseyin Çevik Chairman of the Board of Directors Assets 4,8 Billion TRY Equity 3,5 Billion TRY Mehmet B. Ahmet Can İhsan Murat Yıldız Telcioğlu Begüm Çevik EBITDA Çevik Küçükgençay 707 Mn TL Board Member Board Member Independent Board Member Independent Bo
Slide 7: Share Closing Price and Market Value
Share Closing Price 600 307,00 ₺ 25 10,44 $ 500 20 400 15 USD TL 300 10 200 As of 31.12.2023, 100 5 192% return on 0 0 TL basis and 92% return on USD basis since Market Value the public 25.000 offering. 12.894,0 mn TL Milyon TL 31.12.2023 20.000 15.000 10.000 5.000 0
Slide 8: Operational Activities
2 Operational Activities
Slide 9: Group Structure
Operational Activities Group Structure Hüseyin Çevik Free Float %3,8 %80 %20 CVK MINING %96,2 %70 Hayri Virtus Mining Ögelman Ltd Mining Inc. %100 Kalkim Bayındır Harmancık Harmancık Sarıalan Gold Aldridge Chrome Chrome Lead-Zinc Lead-Zinc Minerals Inc Processing Mining Processing Beneficiation Proc
Slide 10: License Distribution
Operational Activities License Distribution License License Area Reserve / Resource Company Region (Province / County) Mine Type Phase (ha.) Quantity Çanakkale, Yenice Kurşun - Çinko İşletme 1.944,80 0,90 milyon ton Çanakkale, Yenice Kurşun - Çinko İşletme 1.609,14 2,60 milyon ton Balıkesir, Altıeyl
Slide 11: Mine Locations
Operational Activities Mine Locations Bursa Kayseri Erzincan → 7 Chrome mine Operating Licenses → 1 Chrome mine → 1 Chrome mine Operating exploration license → 1 Chromium enrichment facility License Çanakkale → 2 Lead-Zinc Operating Licenses → 1 Lead-Zinc Flotation Plant with a processing capacity o
Slide 12: Operational Plants: Kalkim Lead-Zinc, Harmancık Chrome
Operational Activities Operational Plants • The company's subsidiary, Hayri Ögelman Madencilik • Run-of-mine ore production started in the Çanakkale- Plant Kalkim Lead-Zinc Harmancık Chrome Plant A.Ş., has 10 chrome ore operating licenses and a Yenice region in 2012. chrome enrichment (concentration
Slide 13: Operational Plants: Bayındır Lead-Zinc, Sarıalan Gold
Operational Activities Operational Plants •The Company has a gold and silver mining license in the Bayındır Kurşun- Çinko İşletmesi Enterprise Sarıalan Gold •Within the scope of the capacity increasing works carried out Balıkesir/İvrindi-Sarılaan region, with partial reserve for the lead-zinc flotat
Slide 14: Sarıalan Gold Plant
Operational Activities Sarıalan Gold Plant 1.562 Ha 563.781 ons Gold Equivalent, License Area with Operating Permit Rezerv Value 1,3 billion USD 913 Ha 2,4 milyar TL EIA License Area Provided Investment Incentive Amount
Slide 15: Investments
3 Investements
Slide 16: Investments
Investments Balıkesir/İvrindi-Sarıalan Gold Mine Project In the Gold Mine Project, it is planned that the waste pool and production facilities will be completed by the end of 2024 and the first production will start in 2025, and the production will continue to increase over the years. Public Offerin
Slide 17: Harmancık Chrome Plant, New Waste Pool
Investments Bursa Harmancık Chrome Plant The project to connect the underground mines with tunnels, which is being carried out at the Harmancık Chrome Mine, has been completed, and within the scope of the project, an approximately 2.4 km long main gallery was opened in 2023, and approximately 26.4 k
Slide 18: Post-Balance Sheet Developments
Post-Balance Sheet Developments 70% share of Virtus In the PDP statement made on 17.05.2024, it was announced that 70% of Virtus Mining Ltd was purchased. Virtus Mining Ltd, the owner of has a polymetallic mining field operating license in Yenipazar district of Yozgat province. According to the Umre
Slide 19: Financials
4 Financials
Slide 20: Performance Excluding TMS29
Financials Performance Except TMS29 Financials Excluding TMS 29 Effect ▀ The Company's revenues reached 1,472 million TL in 2023, increasing its revenues by 52.2% compared to 2022. The rate in question is below the inflation rate of 2023. For this reason, when the financials, including the effect of
Slide 21: Performance Including TMS29
Financials Performance Including TMS29 Financials Including the Effect of TAS 29 ▀ The Company's revenues, which reached a turnover of 1,779 million TL in 2023, decreased by 6.2% in real terms due to inflation accounting, although it increased its revenues in nominal terms compared to 2022. ▀ The Co
Slide 22: Foreign Sales Ratio and Gross Profit Margin
Financials Foreign Sales Ratio Gross Profit Margin (%) Increased International Sales Amount ▀ Foreign sales arise from the Company's subsidiary, Hayri Ögelman Madencilik A.Ş., directly exporting high grade chrome ore, which constitutes a large portion of the production in the chrome mine in Bursa-Ha
Slide 23: Distribution of Sales
Financials Amount Distribution of Sales Proportional Distribution of Sales 1600,0 1511,0 1448,7 1400,0 1200,0 1000,0 800,0 600,0 400,0 250,5 156,9 174,4 200,0 112,3 4,6 3,0 0,0 2022 2023 Krom Cevheri Çinko Cevheri Kurşun Cevheri Rödevans Gelirleri Chromium Ore Leads in Mining Revenues… ▀ In 2020, th
Slide 24: EBITDA & Net Income Bridge
Financials EBITDA & Net Income Bridge Revenue Increase Reflected in EBITDA and Net Profit ▀ The Company, which reached an EBITDA of 708 million TL in 2023, increased its nominal EBITDA compared to 2022, but its real EBITDA decreased by 20.6% due to inflation accounting. The reason for this real decl
Slide 25: Equity Bridge
Finansallar Equity Bridge Growth in Equity 92% ▀ The parent company equity figure, which was 1,838 million TL as of 2022/12, reached 3,532 million TL as of 2023/12. The increase expressed corresponds to an annual growth rate of 92%. ▀ The most important reason for this increase is the emission premi
Slide 26: Working Capital Analysis
Financials Working Capital Working Capital Bridge Working Capital Analyse TLm 2022/12 2023/12 Trade Receivables 215,8 186,6 Stocks 125,1 362,3 Other. Current. Assets. 14,0 95,0 Prepaid Expenses 69,7 29,6 Trade Payables (96,7) (422,3) Deferred Income (10,9) (27,6) Other Short Term Liab. (60,4) (62,6)
Slide 27: Day Durations & Working Capital Development
Financials Day Durations & Working Capital Development 27
Slide 28: Net Debt & Equity & Financial Leverage
Financials Net Debt Net Debt/EBITDA Net Debt & Equity & Financial Leverage TLm 2022/12 2023/12 Cash and Cash Equivalents 119,6 779,7 Financial Investments 0,2 4,1 Other Receivables 8,5 31,7 Short Term. Fin. Debt 149,91 189,33 Other Debt 31,1 8,7 Long Term. Fin. Debt 30,8 9,9 Other Payables 0,00 0,67
Slide 29: Foreign Currency Position, Investments
Financials Foreign Currency Position Investments (mTL) Investments mTL 2022 2023 Mining Assets 174,9 231,2 Land and Lands - 5,1 Underground and Aboveground Layouts 2,3 1,9 Buildings 0,6 97,4 Machinery, plant and equipment 33,0 61,6 vehicles 16,9 40,0 fixed assets 3,8 8,3 Other 1,1 69,0 Total Investm
Slide 30: Financial Ratios
Financials Return on Equity Financial Ratios Liquidty Ratios 2022/12 2023/12 Referans Current Ratio 1,58 2,10 1,0-1,5 Liquidity Ratio 1,23 1,59 0,8-1,0 Indebtedness Ratios 2022/12 2023/12 Reference Total Debt/Total Assets 29,0% 25,0% <%40 Short Term. Fin. Debt/Shareholders' Equity 5,2% 4,7% <100% EB
Slide 31: 2023-12 Balance Sheet
Financials 2023-12 Balance Sheet TFRS Based Balance Sheet 2022/12 2023/12 TFRS Based Balance Sheet 2022/12 2023/12 CVK Maden mTL mTL SHORT-TERM LIABILITIES 349,0 710,5 CVK Maden mTL mTL Short Term Borrowings 95,2 166,6 DÖNEN VARLIKLAR 553,0 1.489,1 Short-Term Portions of Long-Term Borrowings 54,8 22
Slide 32: 2023-12 Income Statement
Financials 2023-12 Income Statement TFRS Based Income Statement 2022/12 2023/12 Yearly CVK Maden mTL mTL Change Revenues 1.896,4 1.778,8 (6,2%) Cost of Sales 861,8 983,6 14,1% Gross Profit/Loss 1.034,7 795,1 (23,1%) Operational Expenses (-) 240,4 195,2 (18,8%) General and administrative expenses 18,
Slide 33: Projections
5 Projections
Slide 34: Macro Parameters
Projections Macro Parameter Turkey 2021 2022 2023 2024F 2025F 2026F 2027F GDP Growth 11,4% 5,4% 4,5% 3,4% 4,0% 4,5% 4,5% CPI-Annually 36,1% 64,3% 64,8% 42,2% 26,0% 20,4% 15,0% PPI-Annually 79,9% 97,7% 44,2% 45,1% 30,6% 22,5% 16,4% CPI-Yearly Average 19,4% 72,0% 53,9% 56,5% 28,5% 22,9% 17,4% USDTRL,
Slide 35: Sales Quantities and Net Sales Forecasts
Projections Sales Quantities 2021 2022 2023 2024F 2025F 2026F 2027F Chrome (ton) 111.476 145.866 156.000 240.000 260.000 280.000 280.000 Lead (ton) 1.396 2.258 - - 1.000 2.000 3.000 Zinc (ton) 1.694 3.765 - - 1.000 2.000 3.000 Gold (ons) - - - - 25.000 35.000 45.000 Magnesite (ton) 1.980 1.593 - 55.
Slide 36: Fundamental Parameters
Projections FUNDEMENTAL PARAMETER TL 31.12.2024F 31.12.2025F 31.12.2026F 31.12.2027F Net Sales 3.480.359.417 7.928.157.304 11.556.036.137 14.967.009.433 CoGS (-) (1.639.133.303) (3.791.946.694) (5.556.887.747) (7.200.589.726) Gross Profit 1.841.226.114 4.136.210.610 5.999.148.391 7.766.419.707 Gross
Slide 37: Net Sales, EBITDA and Margin Forecasts
Projections Graph:1 Rising exchange rate and quantitative growth support sales... Graph:2 The expected decline in EBITDA margin supports growth... 16.000 Net Sales & Gross Margin 52% 60% 55% EBITDA & EBITDA Margin 7.000 47% 48% 14.000 45% 14.967 50% 12.000 52% 52% 6.000 46% 53% 40% 5.000 6.524 10.00
Slide 38: Investment Thesis
Projections Investment Thesis Low indebtedness creates high borrowing capacity; Solid financials by 2023/12; A significant portion of Turkey's chrome exports are realized by the Company; Export sales share is 77.8%; 454.5 million TL positive foreign exchange position in a rising foreign exchange env
Slide 39: Disclaimer
DISCLAIMER This presentation contains information relating to CVK Mining that may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose. By accessing this document you agree to abide by the limitations set out in this document
Slide 40: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Hüseyin Saygı Investor Relation Manager THANK YOU For detailed information, please contact us by e-mail yatirimci.iliskileri@cvkmadencilik.com
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CVK Maden Işletmeleri Sanayi ve Ticaret A.Ş. — Q4 2023 Earnings Presentation on 6ix