Central Asia Metals Plc · LSE:CAML
Central Asia Metals — FY2022 Earnings Presentation
53 slides from Central Asia Metals's earnings presentation, March 2023
Slide 1: Building the Business for the Future – 2022 Results
BUILDING THE BUSINESS FOR THE FUTURE 2022 RESULTS 1
Slide 2: Disclaimer
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 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
Slide 3: Company Overview
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 01 COMPANY OVERVIEW
Slide 4: CAML Operations
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 CAML OPERATIONS SASA (100%) - Underground zinc and lead mine, northeast North Macedonia - Production commenced in 1960s - Life of mine to 2039 (reserves and resources) - 2022 production, 21,473t zinc and 27,354t lead - 2023 production
Slide 5: 2022 Results Highlights
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 2022 RESULTS HIGHLIGHTS STRONG FINANCIAL PERFORMANCE EBITDA $131.6m DEBT REVENUE FREE $232.2m CASH FCF DIVIDEND $60.6m $89.7m 20p 2022 EBITDA H1 2022 Pb EBITDA LTIFR MARGIN 2022 Pb 2022 Zn 0.83 57% 5
Slide 6: Our Purpose-Driven Approach
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 OUR PURPOSE-DRIVEN APPROACH OUR STRATEGIC OBJECTIVES OUR IMMEDIATE STRATEGIC OBJECTIVES OUR PURPOSE IS TO PRODUCE BASE METALS, ESSENTIAL FOCUS ON SUSTAINABILITY SUSTAINABILITY PILLARS FOR MODERN LIVING, PROFITABLY IN A SAFE AND This ob
Slide 7: Financial Results
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 02 FINANCIAL RESULTS
Slide 8: Market Conditions
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 MARKET CONDITIONS Metals and currency markets Inflation impacts – Benefitted from elevated metal prices which began to respond – Inflation rates were 20.3% in Kazakhstan and 14.2% in North to greater economic uncertainty towards the en
Slide 9: 2022 Income Statement
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 2022 INCOME STATEMENT EBITDA margin 57% Highlights 2022 2021 % change – Gross revenue 1% lower YoY – Higher zinc prices, lower copper prices Gross revenue, $m 232.2 235.2 -1% – Impact of cost inflation reduced by favourable FX Cost of
Slide 10: EBITDA 2022 vs 2021
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 EBITDA 2022 VS 2021 131.6 10
Slide 11: 2022 Kounrad C1 Copper Cash Cost
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 2022 KOUNRAD C1 COPPER CASH COST 2022 C1 cash cost $0.65/lb (2021: $0.57/lb) Cost 2022 2021 2022 2021 $m $m $/lb $/lb $0.08/lb cost increase includes: Reagents 3.0 3.2 0.09 0.10 – Increase in payroll costs by $0.06/lb following agreed
Slide 12: 2022 Sasa Run of Mine Costs
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 2022 SASA RUN OF MINE COSTS 2022 RoM unit cost $55.6/t (2021: $44.1/t) C1 cash cost 2022 2021 2022 2021 $m $m $11.5/t increase, includes: - Increase in electricity costs driven by price rises, $6.9/t RoM mine, t 806,069 818,609 - Fixed
Slide 13: 2022 Capex
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 2022 CAPEX 2022 Group capex $17.4m (2021: $14.8m) 2023E capex – Below 2022 guidance of $28-30m due to deferrals of capex to 2023 $28-30m Sasa sustaining capex $7.7m, includes – Underground development, $2.5m – Flotation equipment, $1.4
Slide 14: 31 December 2022 Balance Sheet
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 31 DECEMBER 2022 BALANCE SHEET Corporate debt facility repaid 31 Dec 2022, 31 Dec 2021, $m $m – Net cash $58.9m (2021: $22.7m) PPE 322.0 384.9 – Group cash balance, $60.6m (2021: $59.2m) Intangible assets 26.6 52.1 – Group gross debt,
Slide 15: 2022 Cash Flow
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 2022 CASH FLOW 2022 FCF of $89.7m 60.6 15
Slide 16: Sustainability
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 03 SUSTAINABILITY
Slide 17: Sustainability Framework
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 SUSTAINABILITY FRAMEWORK OUR DOUBLE MATERIALITY APPROACH CAML’S PRIMARY SDGS HIGHEST PRIORITY 1 Environmental compliance and Ensure healthy lives and promote well-being for management all at all ages. 2 Hazardous waste management incl.
Slide 18: Delivering Value Through Stewardship
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 DELIVERING VALUE THROUGH STEWARDSHIP CORPORATE GOVERNANCE 2022 highlights HUMAN RIGHTS - 98% top priority employees trained on new corporate governance training platform - 92% new suppliers screened using social assessment criteria - H
Slide 19: Maintaining Health and Safety
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 MAINTAINING HEALTH AND SAFETY SAFETY AT OUR SITES Sasa Training 6 - 2 LTIs, 2 MTIs, 1 RWC - 14% increase in Group health and 5 safety training versus 2021 4 - ‘Significant Incident Investigation’ Kounrad training carried out 3 - 0 LTIs
Slide 20: Focusing on Our People
CENTRAL ASIA METALS PLC | PRESENTATION TITLE | [DATE] FOCUSING ON OUR PEOPLE DIVERSITY AND INCLUSION 2022 highlights - Four new mentees supported as part of IWiM, and three mentors provided - Diversity and inclusion focus groups - Sasa training team developed LABOUR RIGHTS - Improved employee onboar
Slide 21: 2022 Climate Change Progress
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 2022 CLIMATE CHANGE PROGRESS TARGET – 50% REDUCTION IN GHG EMISSIONS* BY 2030 FROM A 2020 BASE Achievements to date CAML GHG Emissions - Scope 1 & 2 - 2021 agreement to purchase Kounrad solar power project to contribute solely renewabl
Slide 22: Caring for the Environment
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 CARING FOR THE ENVIRONMENT 2022 highlights (excl. 2023 objectives (excl. Long term targets climate) climate) - Zero severe or major - Kounrad ARO completed - Analyse energy usage data environmental incidents from Sasa with new - Sasa E
Slide 23: Unlocking Value for Our Communities
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 UNLOCKING VALUE FOR OUR COMMUNITIES CAML FUNDED ITS CHARITABLE FOUNDATIONS WITH $0.5M IN 2022 Sasa Foundation Kounrad Foundation – PrimePoint appointed to further – Financial support for the children's develop LEAP and LEDP, workshops
Slide 24: Kounrad Copper Operation
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 04 KOUNRAD COPPER OPERATION
Slide 25: Kounrad Copper Operation
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 KOUNRAD COPPER OPERATION Kounrad Mine Eastern Dumps 7 5 6 2 20 SX-EW 9-10 plant 13 Western Dumps 21a 15 1a 16 Kounrad village Remaining recoverable resources Eastern 22 c.5,400t Dumps Western c.106,200t Dumps Total c.111,600t 25
Slide 26: In-Situ Dump Leach and SX-EW Plant
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 IN-SITU DUMP LEACH AND SX-EW PLANT Kounrad copper production 2023 guidance, increased YoY Cumulative annual production (t) 16,000 160,000 - 2023 guidance, 13,000t – 14,000t 14,000 140,000 Annual production (t) 12,000 120,000 - 2022 rec
Slide 27: Solar Power Plant
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 SOLAR POWER PLANT CONSTRUCTION COMMENCED IN Q4 2022 - Scoping study undertaken in 2021, and was approved by the Board - Detailed engineering work undertaken to firm up approach and costs in H1 2022, Board approval for project reiterate
Slide 28: Looking Back Over 10 Years at Kounrad
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 LOOKING BACK OVER 10 YEARS AT KOUNRAD SINCE BUILDING THE KOUNRAD OPERATION IN 2012 – Production of 138,395 tonnes of copper cathode – Average C1 cash cost of $0.56 per pound (2012 – 2022) – Supporting Kazakh workforce of 337 employees
Slide 29: Sasa Zinc and Lead Mine
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 05 SASA ZINC AND LEAD MINE
Slide 30: Sasa Zinc and Lead Mine
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 SASA ZINC AND LEAD MINE - Skarn hosted deposit in North Macedonia - Underground mine - Sub-level caving operation - Transitioning to paste fill mining approach in 2023 - Reserves and resources to 2039 30
Slide 31: Sasa Production
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 SASA PRODUCTION 2022 production Unit 2022 2021 2020 2019 2018 - Zinc 21,473t - Lead 27,354t Ore mined t 806,069 818,609 826,421 817,714 803,101 Plant feed t 806,653 830,709 820,215 820,491 804,749 2023 guidance - Ore mined, 790,000-810
Slide 32: Central Decline Development
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 CENTRAL DECLINE DEVELOPMENT - Development continues from surface and on 910 level - 1,554m developed to end of 2022 - A total of 1,051m was developed during 2022 - Total length of decline, c.4km - Construction to be undertaken in 3 sta
Slide 33: Paste Backfill Plant Construction
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 PASTE BACKFILL PLANT CONSTRUCTION - Preparatory earthworks and service culvert completed - Plant steel work construction started mid- September, with roof panels installed during December - Installation of reticulation pipes commenced
Slide 34: Dry Stack Tailings Plant Design
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 DRY STACK TAILINGS PLANT DESIGN – Design being adapted into North Macedonian format for submission to authorities - Major equipment now ordered including filter press, slurry pumps and tanks, and expected on site by H2 2022 - Knight Pi
Slide 35: Sasa Reserves and Resources Summary
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 SASA RESERVES AND RESOURCES SUMMARY* SASA LOM EXTENDED TO 2039 ON 830,000T/ YEAR PRODUCTION - During Q4 2021, CAML bolstered its technical Sasa MRE Mt Pb% Zn% Pb kt Zn kt team Indicated 10.3 4.5 3.0 459 306 (SR) - 2022, revisit of Sasa
Slide 36: Sasa 2023 Drilling Plans
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 SASA 2023 DRILLING PLANS North Svinja Reka Kozja Reka 20.7Mt mined Golema Reka 3.3Mt mined 1966 – To date 2.7Mt mined 1966 – 1989 1980 - 2010 Mined Mined Golema Mined Mined Reka Shaft Level 1064 Level 990 Level 910 Mined Level 830 Leve
Slide 37: The First Five Years at Sasa
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 THE FIRST FIVE YEARS AT SASA SINCE ACQUIRING THE SASA OPERATION IN NOVEMBER 2017 – Total CAPEX of $54.1 million – Generating EBITDA of $301.5 million Employed – All debt has been repaid 735 staff 98% locally – Establishment of the Sasa
Slide 38: Income and Growth
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 06 INCOME AND GROWTH
Slide 39: Capital Allocation Priorities
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 CAPITAL ALLOCATION PRIORITIES Returns to shareholders 2022 business development activities – 2022 final dividend, 10p – 2022 full dividend, 20p (2021: 20p) 2 site visit – 47% of FCF undertaken – CAML dividend policy, 30-50% FCF – Total
Slide 40: Summary and Outlook
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 SUMMARY AND OUTLOOK A strong sustainable business - Strong operational and financial performance - Producing the metals essential for modern living safely and sustainably Capital allocation priorities - 2022 dividend, 20p - Investment
Slide 41: Contact Details
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 CONTACT DETAILS GROUP INVESTOR RELATIONS MANAGER Emma Chetwynd Stapylton Sackville House 40 Piccadilly London W1J 0DR Emma.chetwyndstapylton@centralasiametals.com +44 (0) 207 898 9001 www.centralasiametals.com
Slide 42: Appendices
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 APPENDICES
Slide 43: Share Price / Shareholders
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 SHARE PRICE/ SHAREHOLDERS SHARE PRICE PERFORMANCE VERSUS PEERS Share price* (AIM:CAML) 250.0 pence 130 Total no. voting shares 181,626,619 Treasury shares 471,647 120 Issued shares 182,098,266 110 Market capitalisation £455m 100 Free f
Slide 44: Board of Directors
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 BOARD OF DIRECTORS BOARD OF DIRECTORS Mike Prentis Nurlan Zhakupov Gavin Ferrar David Swan Senior Independent Director NED CFO NED - Kazakhstan experience - accounting experience NED - Capital markets experience Member Chair - Nominati
Slide 45: Our Investment Case
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 OUR INVESTMENT CASE A STRONG SUSTAINABLE BUSINESS RESPONSIBILITY ACCOUNTABILITY SUSTAINABILITY PRODUCTIVITY PROFITABILITY DEPENDABILITY Our purpose is: – Governance and – Taking responsibility for – We encourage our – With a low-cost –
Slide 46: Sustainability Framework
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 SUSTAINABILITY FRAMEWORK OUR SUSTAINBILITY PILLARS DELIVERING FOCUSING ON CARING FOR THE UNLOCKING VALUE FOR VALUE THROUGH OUR PEOPLE ENVIRONMENT OUR COMMUNITIES STEWARDSHIP We look to maintain the highest levels of CAML has robust and
Slide 47: Copper – Risk-On Tone Dissipating
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 COPPER – RISK-ON TONE DISSIPATING Early 2023 risk-on tone wanes – Copper rallied strongly to US$9,300/t in January, since lost some ground to below US$9,000/t in March – Demand should pick up over 2023 with Chinese economic recovery an
Slide 48: Zinc – Pressure Easing but Market Remains Tight
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 ZINC – PRESSURE EASING BUT MARKET REMAINS TIGHT Zinc market remains tight but supply improves – Zinc prices have recently fallen back below US$3,000/t, having risen above US$3,400/t in January, lack of evidence that the Chinese recover
Slide 49: Lead – Refined Market in Deficit
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 LEAD – REFINED MARKET IN DEFICIT Lead prices correct alongside most industrial metals – Lead prices have fallen ~10% since breaking above US$2,200/t in January – Prices expected to hover around US$2,000-2,100/t for 2023 due to weak dem
Slide 50: Mineral Resource Estimates for Svinja Reka and Golema Reka - Sasa
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 MINERAL RESOURCE ESTIMATES FOR SVINJA REKA AND GOLEMA REKA - SASA Sasa’s technical services team has updated the Mineral Resource Estimate (‘MRE’) for the Svinja Reka deposit as of 31 December 2022. The Golema Reka MRE was updated on 1
Slide 51: Svinja Reka Ore Reserve Statement - Sasa
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 SVINJA REKA ORE RESERVE STATEMENT - SASA The following Ore Reserve Statement has been prepared by Sasa’s technical services team based on a Life of Mine (‘LoM’) plan that includes a transition from the Sub Level Caving mining method to
Slide 52: Kounrad Resources and Technology
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 KOUNRAD RESOURCES AND TECHNOLOGY Category Quantity, Mt Grade (%) Contained copper, kt Eastern Dumps Indicated 89.7 0.10 85.8 Inferred 79.6 0.10 81.7 Total 169.3 0.10 167.5 Western Dumps Indicated 296.4 0.10 282.4 Inferred 181.5 0.09 16
Slide 53: 2022 C1 Cash Cost
CENTRAL ASIA METALS PLC | 2022 RESULTS PRESENTATION | MARCH 2023 2022 C1 CASH COST % 2022 2021 change Kounrad Cu C1 cash cost, $/lb 0.65 0.57 +14% Sasa Zn eq. C1 cash cost, $/lb 0.78 0.63 +24% Cu eq. production, t 27,656 26,000 +6% CAML Cu eq. C1 cash cost, $/lb 1.39 1.32 +5% 53