Central Asia Metals Plc · LSE:CAML
Central Asia Metals — 121 Mining Investment, London 2017
28 slides from Central Asia Metals's conference presentation, May 11, 2017
Slide 1: Central Asia Metals - 121 Mining Investment, London
CENTRAL ASIA METALS 121 MINING INVESTMENT, LONDON NICK CLARKE, CHAIRMAN 10-11 MAY 2017
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: Introducing Central Asia Metals (CAML)
INTRODUCING CENTRAL ASIA METALS (CAML) 2016 record copper Listed AIM market of London Stock Exchange, IPO in September production 2010, raised $60m 14,020t Copper producer with assets in Kazakhstan 2015: 12,071t Production from Kounrad dump leach and SX-EW plant 2016 C1 cash cost Kazakhstan JORC res
Slide 4: Share Price Performance
SHARE PRICE PERFORMANCE 100 275 90 $96M RETURNED TO SHAREHOLDERS* 250 80 REPRESENTS 31% OF CUMULATIVE GROSS REVENUE 225 200 70 175 60 Price (p) 150 $m 50 125 40 100 30 75 20 50 10 25 0 0 2012 2013 2014 2015 2016 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
Slide 5: Kounrad Production and Outlook
KOUNRAD PRODUCTION AND OUTLOOK 4.5 70 4.0 Quarterly copper production (kt) Cumulative copper production (kt) 60 2016 COPPER PRODUCTION AND SALES 3.5 50 3.0 Record annual copper production, 14,020t (+16% YoY) 2.5 40 2016 copper cathode sales, 13,938t (+16% YoY) 2.0 30 1.5 20 Total copper production t
Slide 6: April 2017, Leaching from Western Dumps
APRIL 2017, LEACHING FROM WESTERN DUMPS Future leaching operations at both Eastern and Western Dumps Total Western Dumps area of 741 hectares Different leaching characteristics in Western Dumps – Average leaching time 20 months vs. 8 months (East) – Dump height 40m vs. 20m (East) Copper recovery 35-
Slide 7: Kounrad Capex
KOUNRAD CAPEX CAML HAS CONSISTENTLY DELIVERED ITS CAPITAL PROJECTS BELOW BUDGET ALL MAJOR CAPITAL AT KOUNRAD NOW INVESTED 90 80 70 60 Capex $m 50 40 30 20 10 0 Initial plant construction Stage 1 Expansion Stage 2 Expansion Total Estimated annual sustaining Sustaining actual Project actual Project bu
Slide 8: 2016 Cost of Copper Production
2016 COST OF COPPER PRODUCTION FULLY INCLUSIVE UNIT COST $1.06/lb (2015: $1.58/lb) 2016 2015 % $/lb $/lb change $0.06/lb Local administrative $0.28/lb expenses C1 cash cost 0.43 0.60 -28% Cost of production $0.09/lb MET & other taxes 0.14 0.19 -26% Distribution and selling Depreciation 0.16 0.39 -59
Slide 9: Kounrad Financial Performance to Date
KOUNRAD FINANCIAL PERFORMANCE TO DATE Total 2016 2015 2014 2013 2012 56 months 12 months 12 months 12 months 12 months 8 months Sales, Cu tonnes 54,213 13,938 12,040 11,163 10,689 6,383 Production, Cu tonnes 54,322 14,020 12,071 11,136 10,509 6,586 Average sale price, $/t 6,447 4,994 5,336 6,794 7,1
Slide 10: Shuak, Kazakhstan (CAML 80%)
SHUAK, KAZAKHSTAN (CAML 80%) Framework agreement signed in November 2016 Licence area 197km2 Shuak extensively explored in Soviet times Contains three near term targets, with the priority area being Mongol V – Pre-GKZ resource, c. 327,000 tonnes of contained copper at 0.66% Cu in C2 and P1 categorie
Slide 11: Outlook
OUTLOOK PROFITABLE BUSINESS 2016 record production EBITDA margins >50% 14,020t C1 cost in lowest quartile STRONG BALANCE SHEET Cash at 31 Dec 2016 Cash $40.4m at 31 December 2016 No debt $40.4m HEALTHY CASHFLOWS Maintain dividend policy 2016 C1 cash cost Expansions self financed Project capital now
Slide 12: Contacts
CONTACTS INVESTOR RELATIONS CONTACT Louise Wrathall 11 Albemarle Street London W1S 4HH louise.wrathall@centralasiametals.com +44 (0) 207 898 9001 www.centralasiametals.com 12
Slide 13: Appendices
CENTRAL ASIA METALS APPENDICES we
Slide 14: Structure and Ownership
STRUCTURE AND OWNERSHIP MAJOR SHAREHOLDERS AS OF 28 APRIL 2017 No. of shares % Holding MR KENGES RAKISHEV 21,211,751 19.01 HARGREAVE HALE 11,395,020 10.21 FIL INVESTMENT 9,910,941 8.88 INTERNATIONAL MAJEDIE ASSET MGT 8,340,108 7.48 COMMONWEALTH AMERICAN 7,118,243 6.38 PARTNERS BLACKROCK INVESTMENT M
Slide 15: Board of Directors
BOARD OF DIRECTORS 15
Slide 16: Directors' Biographies
DIRECTORS’ BIOGRAPHIES NICK CLARKE, EXECUTIVE CHAIRMAN DAVID SWAN, NON-EXECUTIVE DIRECTOR Nick has over 40 years of mining experience, including 16 years spent within senior David is a chartered accountant with extensive experience across the natural resources sector. management positions in product
Slide 17: Analyst Coverage
ANALYST COVERAGE Tim Huff Paul Burton +44 (0) 207 523 8375 +44 (0) 203 691 9430 thuff@canaccordgenuity.com pb@martenandco.com To view our latest QuotedData research note: www.centralasiametals.com/investors/analyst- coverage Martin Potts Richard Morgan +44 (0) 207 220 0544 +44 (0) 207 866 0201 mpott
Slide 18: Copper Bay, Chile (CAML 75%)
COPPER BAY, CHILE (CAML 75%) DFS COMPLETED Q4 2016 Site of historic tailings disposal, Atacama region of Northern Chile Exploitation licence 15.25km2 DFS utilises beach dredging operation to recover copper tailings, SX-EW plant to produce cathode and flotation circuit to produce copper in concentrat
Slide 19: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY HEALTH & SAFETY No LTI in 2016, total LTI free man hours now 1.5 million Government health and safety inspections successfully undertaken in 2016 ENVIRONMENTAL Government environmental checks successfully undertaken during 2016 252 monitoring boreholes cover Eastern a
Slide 20: Kounrad 2016 Operational Overview
KOUNRAD 2016 OPERATIONAL OVERVIEW STABLE OPERATIONS No LTI in 2016, LTI free hours now 1.5m 2012 2013 2014 2015 2016 PLS flow rates increased with expansion LTI 0 0 1 2 0 PLS grades stable Cu production, t 6,586 10,510 11,136 12,071 14,020 Irrigation area stable Ave. PLS, m3/hr 383 532 771 784 888 P
Slide 21: Leaching Operations - Scale
LEACHING OPERATIONS - SCALE 80.0 15,000 0.167% Cu 13,500 70.0 Average copper grade under leach declining, copper Total material under leach, Mt 12,000 60.0 10,500 recovered increased YoY Leached copper, t 50.0 9,000 40.0 7,500 Lower grades under leach compensated by increased leach 0.082% Cu 6,000 3
Slide 22: 2016 Income Statement
2016 INCOME STATEMENT STRONG PROFITABILITY, 56% EBITDA MARGIN 2016 2015 % change GROSS REVENUE $69.3m Sales, t 13,938 12,040 +16% Sales volumes +16% YoY reflect a full year of expanded production Average sale price, $/t 4,994 5,336 -6% Average sales price achieved $4,994/t, -6% YoY Gross revenue, $m
Slide 23: 2016 C1 Cash Cost of Production
2016 C1 CASH COST OF PRODUCTION KOUNRAD COSTS CONSISTENTLY BELOW COPPER PRICE 2016 2015 % change $/lb $/lb 4.00 Payroll 0.09 0.13 -31% 3.00 Reagents 0.05 0.08 -38% $/lb 2.00 Power 0.05 0.09 -44% 1.00 Materials 0.05 0.06 -17% - 2012 2013 2014 2015 2016 (8m) Consulting & other 0.04 0.04 0% Copper pric
Slide 24: 2016 Balance Sheet
2016 BALANCE SHEET STRONG BALANCE SHEET, NO DEBT 2016 2015 $m $m ASSET BASE PPE 50.3 40.8 $91m of PPE and intangible assets, increase due to Stage 2 Expansion Intangible assets 40.8 40.3 Stage 2 Expansion materially complete and c.30% Cash 40.4 42.0 under budget Other 7.0 10.0 WORKING CAPITAL Total
Slide 25: Cash Flow
CASH FLOW 2016 CASH FLOW CASH FLOW SINCE IPO (2010) 90 250 44.7 (9.2) 176.4 (44.5) 80 (13.9) 200 (73.6) 70 (20.4) 60 150 50 $m $m (2.8) 40.4 (81.7) 42.0 40 100 30 59.0 20 3.5 50 40.4 10 1.3 - - Cash pre IPO Net IPO Cash generated Income tax Capex Returns Other Closing cash Opening cash Cash generate
Slide 26: Financial Impact of Tenge Devaluation
FINANCIAL IMPACT OF TENGE DEVALUATION TENGE DEVALUATION Tenge (“KZT”) devalued from 185 KZT/USD by 85% in August 2015 KZT income and expenses are translated into USD at average annual exchange rate in CAML income statement 2016 average exchange rate 342 KZT/USD (2015: 222 KZT/USD) equates to USD “sa
Slide 27: Kounrad Resource and Technology
KOUNRAD RESOURCE AND TECHNOLOGY JORC Code (2004) Resource Estimate by Wardell Armstrong (prepared in 2013) Contained Resource type Category Quantity, Mt Grade, % copper, kt Eastern Dumps Indicated 89.7 0.10 85.8 Oxide Inferred 79.6 0.10 81.7 Total 169.3 167.5 Western Dumps Indicated 275.4 0.10 276.2
Slide 28: PLS and Groundwater Model
PLS AND GROUNDWATER MODEL Infiltration of acidic solution and precipitation through leach piles Monitoring & Abstraction Collector trench. Low Boreholes permeability liner on down 50m CENTRAL ASIA METALS PLC Monitoring & Abstraction Boreholes 100m gradient side Diagram not to scale
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