Central Asia Metals PLC · LSE:CAML
Central Asia Metals — The Natural Resources Forum, 20 June 2018
20 slides from Central Asia Metals's conference presentation, Jun 20, 2018
Slide 1: The Miners Dilemma: Buy, Build or Buyback
T H E N AT U R A L R E S O U R C E S FORUM, 20 JUNE 2018 ‘THE MINERS DILEMMA: B U Y, B U I L D O R B U Y B A C K ’ NICK CLARKE, CHAIRMAN
Slide 2: Disclaimer
2 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS 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 fur
Slide 3: Central Asia Metals Operations
3 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS CENTRAL ASIA METALS OPERATIONS SHUAK (80%) KAZAKHSTAN 197km2 exploration licence, northern Population, 18.0 million Kazakhstan GDP per capita, $8,585 Potential for copper oxide and sulphide resources Extensively explored in Soviet
Slide 4: CAML Company Timeline
4 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS CAML COMPANY TIMELINE $129m paid to shareholders in 2017, commenced dividends successful leaching of (77p/share) Western Dumps 2015, completed $13m Stage 2018 1 Expansion to increase annual copper production to current 13,000-14,0
Slide 5: Share Price and Shareholders
5 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS SHARE PRICE AND SHAREHOLDERS 350 12,000 350 300 300 10,000 250 250 8,000 Share price (p) Share price (p) Copper ($/t) 200 200 6,000 150 150 4,000 100 100 2,000 50 50 0 0 0 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Se
Slide 6: Build
6 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS BUILD
Slide 7: Kounrad, Overview
7 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS KOUNRAD, OVERVIEW Eastern Dumps § Commenced leaching Q2 2012 § Average dump height 20m, average leach time 8 months § Average copper recovery 45-50% § 2017 production from Eastern Dumps c.60% § Leached 63,628t from Eastern Dumps ‒
Slide 8: Kounrad, Production and Costs
8 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS KOUNRAD, PRODUCTION AND COSTS 4.5 80 Cumulative copper production (kt) 4.0 Quarterly copper production (kt) 70 Copper production and outlook 3.5 60 3.0 § Total copper production to end Q1 2018, 71,496t 50 2.5 40 § FY 2018 producti
Slide 9: Shuak, Overview
9 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS SHUAK, OVERVIEW $2.5m 2018 exploration programme commenced May § 2017 exploration programme $1.5m ‒ CHT drilling programme, 17,530m ‒ Diamond drilling programme, 5,242m § All diamond drilling lab results and CHT results received §
Slide 10: Buy
10 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS BUY
Slide 11: Sasa, Acquisition
11 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS SASA, ACQUISITION $402.5m acquisition $12.0m New debt (Traxys), LIBOR +4.75%, 5 years $50.0m $120.0m Sasa debt (SocGen / Investec), LIBOR +5%, 5+ years Equity placing at 230p Equity consideration shares at 241.5p $153.5m Deferred
Slide 12: Sasa, Overview
12 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS SASA, OVERVIEW § Sasa is a zinc / lead skarn deposit Category Quantity Grade Contained (mt) § Ore body dips at approximately 35°, with 2-3 parallel lenses, 1km Mt Pb (%) Zn (%) Ag (g/t) Pb (kt) Zn (kt) Ag (koz) strike, vertical d
Slide 13: Sasa, Costs
13 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS SASA, COSTS Unit costs, Run of Mine (RoM) 2017 2016 2017 C1 cash cost $0.44/lb (vs zinc price, $1.44/lb) Mining, $000 14,413 13,331 Processing, $000 7,499 8,201 Local G&A, $000 5,019 4,822 Total operating costs, $000 26,931 26,35
Slide 14: Sasa, The Future
14 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS SASA, THE FUTURE Mine and processing plant activities § Infrastructure to access stoping block between 910 and 830 levels completed ‒ Extraction of ore from this area, 2018-2023 § Decline access to 750 level commenced in 2017 § I
Slide 15: Buyback
15 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS BUYBACK
Slide 16: 2012 Share Buyback
16 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS 2012 SHARE BUYBACK CAML share price performance July to December 2012 § July - December 2012, CAML commenced a share buyback 130 scheme with cash generated from Kounrad 120 § Board decision taken due to the low share price at the
Slide 17: Delivering Shareholder Value
17 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS DELIVERING SHAREHOLDER VALUE 140 2017 dividend 16.5p $129m 2018 dividend policy 120 100 “CAML will return to shareholders a target range of 80 between 30% and 50% of free cash flow, defined as $m 60 net cash generated from operat
Slide 18: CAML Summary Financial Performance
18 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS CAML SUMMARY FINANCIAL PERFORMANCE Total 2017 2016 2015 2014 2013 2012 (68 months) (Sasa 2 months) (8 months) Kounrad production, Cu tonnes 68,425 14,103 14,020 12,071 11,136 10,509 6,586 Sasa payable production, Cu eq. tonnes 3,
Slide 19: How Best to Deliver Value for Shareholders
19 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS HOW BEST TO DELIVER VALUE FOR SHAREHOLDERS Buy Build Buyback § Must pay a fair price for a good asset § Develop the project internally § Paid $129m or 77p/ share in dividends in less than 6 years § Must be accretive for current s
Slide 20: Investor Relations Contact
20 C E NT R A L A S IA M E T A LS P LC BU IL DING A BIGGE R BU SINE SS INVESTOR RELATIONS CONTACT Louise Wrathall 11 Albemarle Street London W1S 4HH louise.wrathall@centralasiametals.com Tel: +44 (0) 20 7898 9001 www.centralasiametals.com
Central Asia Metals — The Natural Resources Forum, 20 June 2018 on 6ix