Central Asia Metals Plc · LSE:CAML
Central Asia Metals — FY2012 Earnings Presentation
30 slides from Central Asia Metals's earnings presentation, Mar 27, 2013
Slide 1: 27 March 2013
27 March 2013
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: 2012 Results
CAML 2012 RESULTS • 6,586t of copper produced • Kounrad project revenue - $51m • Group operating profit - $15m • C1 cash cost $1,562/t ($0.71/lb) Kounrad SX-EW Plant • Cash at year end - $33.8m • 3.7p final dividend proposed • Completed JORC compliant resource estimate for Kounrad Kounrad copper rea
Slide 4: The Company at a Glance
CAML THE COMPANY AT A GLANCE • 10,000 tpa copper plant built for $39m, $8m below budget • Plant built in 21 months • 11 months of continuous production • Steady-state operations in severe climatic conditions • 6,586t of LME grade A copper produced in 2012 Copper cathodes in EW building, Kounrad and
Slide 5: Financial Review
Financial Review
Slide 6: CAML 2012 income statement
CAML 2012 income statement CAML (60%) Project (100%) 2012 FINANCIAL PERFORMANCE $m Revenue 30.7 51.1 • Kounrad is a 60:40 joint venture Cost of sales (5.8) (9.6) Gross profit 24.9 41.4 • Revenues of $30.7m (project $51.1m) Distribution & selling (1.3) (2.2) – 6,083 tonnes sold through Traxys off-tak
Slide 7: Kounrad 2012 unit costs of production
KOUNRAD 2012 unit costs of production USDs per tonne of copper G&A Balkhash, 368 Cost of Production of cathodes, 770 Depreciation, 238 Distribution & Selling, 337 Government Taxes on Production, 455 All-inclusive cost $2,167 per tonne ($0.98/lb) 7
Slide 8: CAML 2012 balance sheet and cashflow
CAML 2012 balance sheet and cashflow $m $m STRONG BALANCE SHEET Assets 2012 2011 • 100% equity financed Property, plant & equipment 20.3 22.5 Intangible assets 7.5 8.9 • No material debt Kounrad recoverable 19.2 13.0 Assets held for disposal 8.1 8.4 55.1 52.8 STRONG CASHFLOW Cash 33.9 16.0 • Cash ba
Slide 9: Operational Review
Operational Review
Slide 10: Kounrad 2012 operations overview: monthly production
Kounrad 2012 operations overview MONTHLY PRODUCTION 1200 1103 1032 961 974 1000 890 860 830 800 800 Tonnes of copper 663 677 650 571 572 600 545 Budget 450 450 Actual 400 200 33 30 0 November December July April May September October June August 10
Slide 11: Kounrad 2012 operations overview: leached copper
Kounrad 2012 operations overview LEACHED COPPER, DUMP TO PLANT 90 80 70 Average PLS grade 3.93 g/l (design 1.5 g/l) 60 leached Cu tpd 50 Dump irrigation network, Kounrad 40 30 (Annualised daily requirement = 28t) 20 10 0 03/Aug/12 18/Aug/12 02/Sep/12 17/Sep/12 04/Jul/12 19/Jul/12 01/Nov/12 16/Nov/12
Slide 12: Kounrad 2012 leaching operations
recovery % 10 30 40 50 60 70 80 90 20 100 20/Apr/12 05/May/12 20/May/12 04/Jun/12 19/Jun/12 04/Jul/12 19/Jul/12 Kounrad 03/Aug/12 18/Aug/12 02/Sep/12 17/Sep/12 02/Oct/12 17/Oct/12 01/Nov/12 16/Nov/12 RAMP-UP SX RECOVERY RATES 01/Dec/12 16/Dec/12 31/Dec/12 Design recovery – 85% m3/hr 0 100 200 300 40
Slide 13: Kounrad 8.4MW boiler and PLS heat exchanger
Kounrad 8.4MW boiler and PLS heat exchanger 13
Slide 14: Kounrad Operations overview
Kounrad Operations overview SOLUTION TEMPERATURE vs. AIR TEMPERATURE 40 30 20 10 0 -10 -20 Raff temp Ambient temp -30 -40 14
Slide 15: Kounrad 2012 leaching operations: % recovery
Kounrad 2012 leaching operations Fe SPECIES IMPACT DUMP 9-10 Cu RECOVERY 55 18 100 50 16 90 Bacterial activity 45 80 14 40 Recovery % of available copper 70 Recovery (F.S.) % Recovery 12 35 Recovery Actual 60 30 10 Ferric (Fe3+) 50 25 8 Copper Recovery 40 20 6 30 15 4 20 10 Ferrous (Fe2+) 2 10 5 0 0
Slide 16: Kounrad 2013 leaching plan
Kounrad 2013 leaching plan 16
Slide 17: Kounrad Resource update
Kounrad Resource update WAI 2013 Resource Estimate IPO* Northern Dumps JORC Code (2004) Eastern Dumps Resource Quantity Grade Contained Category type Mt % copper kt Eastern Dumps Indicated 89.7 0.10 85.8 Oxide† Inferred 79.6 0.10 81.7 Western Dumps Total 169.3 167.5 173.7 Western Dumps Indicated 275
Slide 18: Kounrad Column testing
Kounrad Column testing COPPER RECOVERY METALLURGICAL TEST RESULTS 50 Period Dump Head grade % Recovery % 45 Sulphide ore Dec 2011 – Feb 2012 1a 0.267 33.0 40 May – Aug 2012 1a 0.22 47.8 1a 0.26 37.1 35 Nov 2012 – Jan 2013 21 0.177 46.5 21 0.132 46.0 30 Recovery % 1a 0.129 43.0 1a 0.093 46.7 25 21-6.
Slide 19: Mongolia
Mongolia CURRENT INVESTMENT CLIMATE • New foreign investment law • New draft mining code • Presidential elections in June 2013 ALAG BAYAN EXPLORATION LICENCE • 12,500m drilled to date • Ibex drilled 3,529m to satisfy its earn-in agreement for 35% Field camp, Alag Bayan • CAML and IBEX finalising nex
Slide 20: Update and Outlook
Update and Outlook
Slide 21: Update and outlook
Update and outlook UPDATE TO 25 MARCH 2013 • 1,650t of copper production scheduled for Q1 2013 (1,316 budgeted) • Q1 2013 sales: 1,500 tonnes • Cash and cash equivalents: $29.2 million* • Proposed 2012 final dividend of 3.7p OUTLOOK FOR 2013 • 10,000t of copper production Collection trench, Kounrad
Slide 22: Share Price Performance & Buyback
Share Price Performance & Buyback 140 20 Sep 2012: Share 13 Dec 2012: buyback update Maiden dividend of 02 Feb 3.30p per share 2012: SAT (interim) and special deal 30 Apr 2012: First 120 dividend of 3.70p cathode copper per share production at 2 Jul 2012: Kounrad Production update Q2 2012 CAML share
Slide 23: Share Price Performance CAML vs peers
Share Price Performance CAML vs peers 23
Slide 24: Appendices
Appendices
Slide 25: Structure and Ownership
Structure and Ownership MAJOR SHAREHOLDERS* No. of shares % Holding Central Asia Metals Plc LANSDOWNE UK STRATEGIC INVESTMENT 11,394,762 13.22 (UK) LEGAL AND GENERAL GROUP 9,300,000 10.79 COMMONWEALTH AMERICAN PARTNERS 7,625,661 8.85 100% 100% 100% MONTOYA INVESTMENT 5,119,000 6.00 CAML Sary Kazna L
Slide 26: SX-EW Technology Overview
SX-EW Technology Overview CAML SX-EW TEST WORK 2008-2011 • Pilot in-situ leaching and SX-EW plant operational since August 2008 • Successful year-round operation, over 460 tonnes of 99.99%-grade copper produced • Pilot plant has facilitated SX-EW optimisation tests • Process has established low cost
Slide 27: 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 28: Directors
Directors Nick Clarke Chief Executive Officer Nick has 40 years of mining experience, including 16 spent within senior management positions in production and technical services in South Africa, Ghana, and Saudi Arabia. He served as Managing Director of AIM-listed Oriel Resources Plc until 2008 when
Slide 29: Management
Management Pavel Semenchenko General Director, Sary Kazna With 20 years 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. Saken Ashirbekova General Director, Kounrad Copp
Slide 30: Contacts
Contacts www.centralasiametals.com 4-5 Park Place London SW1A 1LP +44 207 898 9001 info@centralasiametals.com 30