Central Asia Metals Plc · LSE:CAML
Central Asia Metals — Shareholder Meeting (June 2015)
33 slides from Central Asia Metals's shareholder meeting presentation, Jun 17, 2015
Slide 1: Annual General Meeting
Annual General Meeting London, 17 June 2015
Slide 2: Disclaimer
Disclaimer This Document comprises an institutional update presentation (the “Presentation”) which has been or regulatory requirement, and, in particular, it or any copy of it, should not be distributed directly or prepared by and is the sole responsibility of Central Asia Metals plc (the “Company”)
Slide 3: 2014 results and update
2014 results and update • 7.5p final dividend (12.5p total for 2014) 2014 dividend • 11,136 tonnes of copper produced (up 6% on 2013) • CAML Group revenue $76.6m 12.5p 5p interim + 7.5p final ($21m) • CAML Group EBITDA $47.3m 2014 production • C1 cash cost $0.71/lb (2013: $0.73) • Cash at 31 Decembe
Slide 4: Share price performance
Share price performance 2.00 7,000 120 £1.94 6,800 1.90 110 6,600 1.80 6,400 100 LME Copper (US$/t.) 6,200 1.70 6,000 90 Price (£) 1.60 5,800 80 1.50 5,600 5,400 70 1.40 £1.40 5,200 60 1.30 5,000 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Copper (LME Cash $/t) Central Asia Metals Plc High Low Central
Slide 5: Financial Review
Financial Review
Slide 6: CAML Group 2014 income statement
CAML Group 2014 income statement CONTINUED STRONG FINANCIAL PERFORMANCE 2014 2013 Change Gross revenue, $m 76.6 54.1 +42% ONE-OFF IMPACTS • Completion of Kounrad Transaction in May 2014 Operating profit, $m 37.5 27.9 +34% • Acquisition of subsoil licence (SUC) - $33m gain Operating profit % 49% 52%
Slide 7: 2014 Kounrad project
2014 Kounrad project RECORD PRODUCTION & REVENUE Project Project Change • Reduction in copper prices 2014 2013 • CAML Hedging policy Sales, tonnes of Cu 11,163 10,689 +4% Unit price achieved, $/t 6,794 7,114 - 5% COST BASE Project revenue, $m 76.6 76.0 +1% • Production costs marginal increase overal
Slide 8: 2014 Kounrad unit costs
2014 Kounrad unit costs FULLY ABSORBED COST $1.65/lb (2013: $1.43lb) Local Admininstrative Corporate Expenses, $0.13 Overheads, $0.35 C1 CASH COST Cost of Production of Cathodes, $0.38 $0.71/lb (2013: $0.73/lb) Depreciation and Amortisation, $0.46 COST OF PRODUCTION - $0.38 Mineral Extraction Tax, $
Slide 9: Kounrad financial performance to date
Kounrad financial performance to date Total 2014 2013 2012 32 months 12 months 12 months 8 months* Sales, Cu tonnes 28,235 11,163 10,689 6,383 Production, Cu tonnes 28,232 11,136 10,509 6,586 Average unit price, $/t 7,214 6,794 7,114 7,995 Project revenue, $m 203.7 76.6 76.0 51.1 GROUP EBITDA, $m 12
Slide 10: Returns to shareholders & cash flows
Returns to shareholders & cash flows Return to shareholders pence £m Sm CASH FLOW 2014 2012 Special, Annual & 10.7 9.0 14.2 Interim 100 47.2 1.6 (16.6)* 2013 Annual & Interim 9.0 9.6 15.6 90 2014 Interim 5.0 5.4 9.0 80 (11.1) 24.0 38.8 70 (17.9) 60 2014 Final 7.5 8.2 12.3 50 (1.4) 32.2 51.1 44.5 46.
Slide 11: Operational Review
Operational Review
Slide 12: Operations overview
Operations overview • H&S and environmental aspects are given 2012 2013 2014 high priority by operations management Lost-time Injuries 0 0 1 • Only one lost time accident since start of construction in 2010 and subsequent Copper production, t 6,586 10,510 11,136 operations Average PLS flow-rate, m3/
Slide 13: Quarterly copper output 2012-15
Quarterly copper output 2012-15 COPPER OUTPUT (TONNES) • Since start of operations over 30,000 3500 3338 3182 3189 tonnes of copper recovered to Q1 2015 3000 2962 2741 2690 2703 • A steady increasing output on a quarter 2350 2500 by quarter basis 2117 2000 1906 • Main focus on increasing Q1 output:
Slide 14: Leaching operations to Q1 2015
Leaching operations to Q1 2015 100% 90% Dump rest period 74% 80% 69% Dump 7 80% Dump 9-10 70% 62% Dump 6 Dump 6 70% Dump 7 Dump 9-10, 97% 54% 60% 60% 47% 50% Overall recovery 42% Dump 6, 79% Dump 5 50% 36% 40% 40% 28% Dump rest period 30% 30% 21% Dump 2 17% 20% 20% 13% Dump 7, 57% 6% 10% 10% Dump 9-
Slide 15: Temperature vs. PLS flow
Temperature vs. PLS flow • PLS flow-rate is seasonal with significant dip during winter (freezing potential) • The two additional boilers have been very successful in reducing this dip • The target is to irrigate dumps in winter with solution at +10ºC (PLS flowing from dump base back to SX is 0ºC) •
Slide 16: Stage 1 expansion
Stage 1 expansion • $13.4m capital budget • SX and EW buildings erected and clad before the on-set of winter 2014, allowing uninterrupted installation works • Extra mixer-settler brings treatment capacity to 1200m3/hr of PLS vs. 900m3/hr • Extra 24 cells increased daily plating capability to SX Expa
Slide 17: Stage 2 expansion - Western Dumps
Stage 2 expansion - Western Dumps • Two 12.7km 450mm ø pipelines to cross- transfer raffinate and PLS • 2km of trenches, 3 solution storage ponds and 8.4MW boiler-house to be constructed SX-EW plant • Passed the Committee stage of State approvals, official sign-off is awaited • Construction permit a
Slide 18: Social and environmental responsibility
Social and environmental responsibility • Over 95% of 338-strong* workforce recruited from local communities • Over 60% of procurement from within Kazakhstan • Strong focus on training and education, with two employees on sponsored MBA courses • Continuing engagement in community projects: over $100
Slide 19: Update and Outlook
Update and Outlook
Slide 20: Copper Bay investment
Copper Bay investment • Chañaral Bay copper recovery project located 800km north of Santiago, Chile • CAML acquired 50% in 2013 for £2m • 136-hole drilling campaign (1,250m) completed September 2014 with JORC-compliant resource report undergoing final checks and reviews • Various studies for pre-fea
Slide 21: Update and outlook
Update and outlook UPDATE • 2,350 tonnes produced in Q1 2015 (23% up YOY) • Stage 1 Expansion completed, plant’s capacity increased to 15,000tpy • Cash and cash equivalents $46.3m* • 2014 FY dividend 12.5p • $53m returned to shareholders in dividends and share buy-backs since July 2012 (88% of cash
Slide 22: Appendices
Appendices
Slide 23: Structure and ownership
Structure and ownership MAJOR SHAREHOLDERS AS OF 30 MAY 2015 No. of shares % Holding KENGES RAKISHEV 21,211,751 19.01 Central Asia Metals Plc HARGEAVE HALE 11,117,500 9.97 (UK) FIDELITY INVESTMENT 8,925,195 8.00 COMMONWEALTH AMERICAN PARTNERS 7,389,492 6.62 100% 100% 100% 52% CAML Sary Kazna LLP CAM
Slide 24: Kounrad resource
Kounrad resource JORC Code (2004) Resource Estimate Northern Dumps by Wardell Armstrong Eastern Dumps Resource type Category Quantity, Mt Grade, % Contained copper, kt Eastern Dumps Indicated 89.7 0.10 85.8 Oxide† Inferred 79.6 0.10 81.7 Western Dumps Total 169.3 167.5 Western Dumps Indicated 275.4
Slide 25: SX-EW technology overview
SX-EW technology overview Cu-loaded organic Loaded Copper Leaching PLS Extraction Stripping aqueous Electrowinning cathode Stripped Spent Raffinate organic electrolyte Acid makeup CAML SX-EW TEST WORK 2008-2011 PROCESS IN USE GLOBALLY • Pilot in-situ leaching and SX-EW plant operational for three •
Slide 26: PLS and groundwater model
PLS and groundwater model Infiltration of acidic solution and precipitation through leach piles Monitoring & Abstraction Monitoring Boreholes Boreholes Material in Leach Piles K = 1.8 – 720 m/d Collector trench. Low permeability liner on down 50m 100m gradient side ALLUVIAL LAYER K = 0.9 – 8.26 m/d
Slide 27: Leaching operations 2014-16
Leaching operations 2014-16 27
Slide 28: Kazakhstan
Kazakhstan COUNTRY STATISTICS • Ninth largest country in the world by land area, and the largest economy in Central Asia • Population of 17.7m (Kazakhs 63%, Russians 24%) • Stable political environment since 1991 • Rated BBB+ (Stable) by Fitch • 4% GDP growth rate in 2014 MINING IN KAZAKHSTAN • Mini
Slide 29: Kounrad mine and dumps history
Kounrad mine and dumps history STATISTICS • 1,500m-wide and 500m-deep pit • 1,500Mt of rock extracted over LOM • 2.9Mt of copper produced • 650Mt of waste piled into dumps • 20 to 40m-high dumps cover 22km2 HISTORY 1928 – Kounrad copper deposit discovery 1938 – Balkhash smelter starts production 199
Slide 30: Board of directors
Board of directors Robert Cathery Nigel Hurst-Brown Nick Clarke Non-Executive Director Non-Executive Chairman David Swan Chief Executive Officer Non-Executive Director Kenges Rakishev Howard Nicholson Nigel Robinson Non-Executive Director Nurlan Zhakupov Technical Director Chief Financial Officer No
Slide 31: Directors’ biographies
Directors’ biographies Nick Clarke Chief Executive Officer Robert Cathery Non-Executive Director Nick has 40 years of mining experience, including 16 years spent within senior management Robert Cathery was a member of the London Stock Exchange from 1967 to 2007 and was positions in production and te
Slide 32: Kazakhstan management
Kazakhstan management Pavel Semenchenko General Director, Sary Kazna With 24 years of experience of managing businesses in Kazakhstan and a proven record in the industry, Pavel has excellent management skills and in-depth knowledge of the local business environment. Oleg Telnoi Director, Kounrad Cop
Slide 33: Contacts
Contacts 11 Albemarle Street, London, W1S 4HH 11 Albemarle 11 +44 207 898 9001 info@centralasiametals.com www.centralasiametals.com
Central Asia Metals — Shareholder Meeting (June 2015) on 6ix