Central Asia Metals Plc · LSE:CAML
Central Asia Metals — H1 2013 Earnings Presentation
26 slides from Central Asia Metals's earnings presentation, September 2013
Slide 1: Interim results for six months to 30 June 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: CAML H1 2013 Update
CAML H1 2013 UPDATE • Interim dividend - 4 pence • Strong operational performance – 4,857t of copper produced (H1 2012: 1,728t) – 5,035t of copper sold (H1 2012: 1,386t) • Attributable revenue $21.2m • C1 cash cost $0.76 per lb – lowest quartile Kounrad SX-EW Plant • Cash balance $26.5m, no debt • 6
Slide 4: CAML 2012-13 share price performance
CAML 2012-13 share price performance 160 9th Jan 2013: Production update 2nd Jul 2013: H1 2013 Production 27th Sep 2012: 27th Mar 2013: & Ops update H1 Results - swing to 2012 Full Year +137% profit Results 140 11th Sep 2012: 30th April 2012: Disposal of First copper Mongolian assets produced 2nd Fe
Slide 5: CAML Performance versus peers
CAML Performance versus peers CAML has significantly outperformed peers and the market over the last 21 months 160 140 +137% 120 Price (rebased to CAML) 100 80 +15% 60 -1% -10% 40 -26% -30% 20 -59% CAML EMED ORSU WEATHERLY FML FTSE UK MINING FTSE AIM 100 Source: DataStream, 21 months to 16 Sept 2013
Slide 6: Financial Review
Financial Review
Slide 7: CAML H1 2013 income statement
CAML H1 2013 income statement CONTINUING OPERATIONS (KOUNRAD 60:40 JV) CAML (60%) Project (100%) $m • Gross revenues $21.2m Gross Revenue 21.2 35.4 – 5,000t sold through Traxys off-take, 35t sold Net revenue 20.1 35.4 locally Cost of sales (5.1) (8.4) – Average gross price $6,996 per tonne Distribut
Slide 8: CAML 2013 costs in the lowest quartile
CAML 2013 costs in the lowest quartile $4.00 C1 cash cost $0.76/lb – 7% increase on 2012 ($0.71/lb) $3.00 G&A $0.12 Q4 - $2.72 ($0.16) Cost of Depreciation Production $2.00 $0.18 $0.37 ( $0.35) ($0.11) Q3 - $1.66 Q2 - $1.29 Q1 - $1.03 $1.00 Distribution & CAML $0.76* Selling $0.19 Govt. Taxes on ($0
Slide 9: CAML H1 2013 balance sheet and cash flow
CAML H1 2013 balance sheet and cash flow 30 June 31 Dec STRONG BALANCE SHEET 2013 2012 • 100% equity financed Assets $m $m Property, plant & equipment 19.7 20.3 Intangible assets 4.2 7.5 POSITIVE H1 2013 CASHFLOW Kounrad recoverable 18.8 19.2 • Cash balance - $26.5m at 30 June 2013 Assets held for d
Slide 10: Kounrad transaction timeline to 100%
CAML Kounrad transaction timeline to 100% Complete Issue Transfer of 15,366,096 Announcement KCC Interest shares to KR of the revised from KR to for KCC Appoint KR KCC transaction CAML K BV to Board of CAM PLC 27 June 2013 26 Sept 2013 31 Dec 2013 31 March 2014 Complete Complete transfer of transfer
Slide 11: Operational Review
Operational Review
Slide 12: Kounrad 2013 leaching operations
Kounrad 2013 leaching operations Dump 9-10 recovery of available copper (as at 31 August 2013) 100 90 Recovery % of available copper 80 70 60 50 40 30 Recovery 20 Actual 10 0 109 127 145 163 181 199 217 235 253 271 289 307 325 343 361 379 397 415 433 451 469 487 1 19 37 55 73 91 Operating days 12
Slide 13: Kounrad H1 2013 operations
Kounrad H1 2013 operations DAILY Cu TRANSFER TO SX AND PLATED COPPER IN EW (t) QUARTERLY CATHODE COPPER PRODUCTION (t) 45 3500 3,181 40 2,943e 3000 2,741 35 2500 30 2,117 25 2000 1,728 1,676 Cu transfer to SX 20 1500 Plated copper in EW 15 1000 10 500 5 0 | 0 2013 Q1 2013 Q2 2012 Q2 2012 Q3 2012 Q4
Slide 14: Kounrad H1 2013 operations
Kounrad H1 2013 operations SOLUTION TEMPERATURE vs AMBIENT TEMPERATURE PLS HEAD GRADE (gpl Cu) vs FLOW RATE (m3/hr) 40 5.0 1200 4.5 30 1000 4.0 20 3.5 800 10 3.0 0 2.5 600 2.0 -10 400 1.5 -20 PLS Cu - 7 days averaged Raff temp 1.0 PLS Flow 200 Outdoors min temp -30 0.5 -40 | | | 0.0 | 0 2013 Q1 2013
Slide 15: Kounrad H1 2013 operations
Kounrad H1 2013 operations SX-EW PLANT RECOVERY SX-EW PLANT UTILISATION RATE 100 100% 90 80 90% 70 (Design target = 93.6%) 60 80% 50 40 70% (Design recovery – 85%) 30 SX recovery 20 60% SX utilisation EW utilisation 10 0 50% 20th April-May July July August October August November April September Jan
Slide 16: 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 17: Kounrad Environmental monitoring
Kounrad Environmental monitoring • 88 monitoring boreholes covering a large trench- adjacent area and plant background territory • 6 monitoring drainage sumps • Centralized plant drainage system • Weekly sampling and assaying Interception trench Ground water sample collection 17
Slide 18: Kounrad Project expansion options
Kounrad Project expansion options Pipeline extension to the Western dumps OPTION 1 • 12km PLS and raffinate transfer lines to the Western dumps • Additional ponds construction at the western side • SX expansion – additional mixer-settler Existing SX-EW plant installation • Additional EW tank house c
Slide 19: CAML Outlook
CAML Outlook INTERIM DIVIDEND 4 PENCE • On track to achieve 10,000t target for 2013 − 7,800t by 30 Sept 2013 • 14,400t produced from the start of operations* • Maintain low cost of production • Cash as at 26 Sept of $42.7m Kounrad SX-EW Plant • Deliver remaining 40% in Kounrad • Plant expansion plan
Slide 20: Appendices
Appendices
Slide 21: Structure and ownership
Structure and ownership MAJOR SHAREHOLDERS* No. of shares % Holding LANSDOWNE UK STRATEGIC INVESTMENT 11,394,762 13.22 Central Asia Metals Plc (UK) LEGAL AND GENERAL GROUP 10,314,300 11.97 COMMONWEALTH AMERICAN PARTNERS 7,445,492 8.64 MONTOYA INVESTMENT 6,011,336 6.98 MAJEDIE ASSET MANAGEMENT 4,473,
Slide 22: 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 23: 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 24: 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 25: Kazakhstan Management
Kazakhstan 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, K
Slide 26: Contacts
Contacts 11 Albemarle Street, London, W1S 4HH 11 Albemarle 11 +44 207 898 9001 info@centralasiametals.com www.centralasiametals.com 26