Central Asia Metals Plc · LSE:CAML
Central Asia Metals — FY2013 Earnings Presentation
34 slides from Central Asia Metals's earnings presentation, April 2014
Slide 1: April 2014
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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 2013 results
CAML 2013 results 2013 FULL YEAR DIVIDEND 9p, $12.6m • 10,509 tonnes of copper produced (5% above target) and 10,689 tonnes sold • Kounrad project revenue $76m • CAML Group revenue $54m • CAML Group EBITDA $32m • C1 cash cost $0.73/lb (2012: $0.71) • Over 418,000 man-hours with no lost-time injuries
Slide 4: Share price performance
2.00 5 25th Nov 2013: : 27th Mar 2013: Strategic investment in 1.80 4 9th Jan 2013: Full year results Copper Bay Production update FY dividend 7p Special dividend 3.7p 30th April 2012: 1.60 5 First copper produced 2nd Jul 2013: H1 2013 Production and Operations Update 1.40 | 20th Sep 2012: Share buy
Slide 5: Capital structure and peer comparison
Capital structure and peer comparison 2.00 AIM: CAML 173.5p* 1.80 1.60 Market capitalisation £147.7m* 1.40 Cash $44.5m† 1.20 1.00 Issued shares 85.1m 0.80 Options and warrants 3.6m 0.60 0.40 Fully diluted 88.7m 0.20 *15 April 2014 †31 December 2013 0.00 EMED ORSU Weatherly FML Rambler FTSE UK Mining
Slide 6: Financial Review
Financial Review
Slide 7: Kounrad Transaction – towards 100%
Kounrad Transaction – towards 100% Joint Venture Joint Venture 100% ACCOUNTING – KCC ONLY 60:40 60:40 Control IFRS 3 Business Combination 15,366,096 shares for 40% KCC & SUC interlinked KCC of KCC – valued at $40.4m Recognise assets & $21.8m ($39.4m + $1m dividends) liabilities of 40% Announcement o
Slide 8: CAML 2013 income statement
CAML 2013 income statement STRONG RESULTS • Revenue up 76% 2013 2012 Change • Operating profit up 86% $m $m Gross Revenue 54.1 30.7 +76% ONE OFF IMPACTS • Gain on KCC acquisition of $27.8m Operating profit 27.9 15.0 +86% • Loss on Mongolia of $14.1m Gain on KCC – fair 27.8 - value CAML GROUP PROFIT
Slide 9: CAML 2013 balance sheet
CAML 2013 balance sheet ACQUISITION OF ADDITIONAL 40% IN KCC 2013 2012 • FV uplift of $46.4 million to PPE $m $m • 40% PPE book value of $11.2 million PPE1 77.7 20.2 Intangibles 16.7 7.5 INTANGIBLE ASSETS • Goodwill $9.3 million Cash 44.5 33.9 • Copper Bay $3.2 million Other 22.6 30.0 Total Assets 1
Slide 10: 2013 Kounrad project
2013 Kounrad project GROSS REVENUE 2013 2012 Change • 10,689 tonnes sold • Average price achieved of 7,114 per tonne $m $m ($3.23/lb) 12 mths 8 mths • Gross project revenue of $76m Sales, tonnes of Cu 10,689 6,383 +67% C1 CASH COSTS Unit price achieved, $ 7,114 7,995 - 11% • C1 cash cost of $17.1m P
Slide 11: 2013 Kounrad unit costs
2013 Kounrad unit costs C1 CASH COST $0.73/lb (2012: $0.71/lb) KOUNRAD’S POSITION ON THE CASH COST CURVE 500 400 OH Copper $0.30/lb cathode 300 $0.73/lb $0.36/lb 200 D&A $0.24/lb 100 MET $0.19/lb 0 0 5000 10000 15000 20000 G&A $0.16/lb -100 S&D $0.18 -200 THE KOUNRAD PROJECT IS IN THE LOWEST FULLY A
Slide 12: Returns to shareholders
Returns to shareholders pence £m Sm CASH FLOW 2013 2012 Special 3.70 3.1 4.8 80 2012 Annual 7.00 5.9 9.4 41.1 (5.5) 2013 Interim 4.00 3.4 5.5 70 (8.2) 12.4 19.7 2013 Final – proposed 5.00 4.3 7.0 3.3 (19.7) (0.4) 16.7 26.6 60 2012 Share buyback (pre-dividend) 2.0 Total returned 28.6 50 Percentage of
Slide 13: Kounrad Operational Review
Kounrad Operational Review
Slide 14: 2013 operations
2013 operations PLS HEAD GRADE vs. FLOW RATE QUARTERLY CATHODE COPPER PRODUCTION (t) 12 1200 3500 3182 2962 3000 10 1000 2690 2500 8 800 Cu gpl m3/hr 1905 2000 6 600 1675 1500 4 400 1000 2 200 500 PLS Cu gpl PLS flow m3/hr 0 0 0 01-Jan-13 01-Apr-13 01-Jul-13 01-Oct-13 01-Jan-14 2013 Q1 2013 Q2 2013
Slide 15: Winter operations
Winter operations 7am Raffinate PLS flow PLS Cu SX Recovery Stripped Cu, °C °C m3/hr gpl % tpd 18 600 3.00 86.5 22 -6 16 86.0 21 500 2.50 14 -7 85.5 20 12 400 2.00 85.0 19 -8 10 300 1.50 84.5 18 -9 8 84.0 17 6 200 1.00 -10 83.5 16 4 -11 100 0.50 2 83.0 15 -12 0 0 0.00 82.5 14 2012-13 2013-14 2012-13
Slide 16: Leaching operations
Leaching operations Actual recovery vs forecast 100% 50% 47% Rest period 90% 45% 42% Dump 7 80% Dump 9-10 40% Dump 6 36% Dump 6 70% 35% Dump 7 Overall recovery Dump recovery 60% 28% 30% Dump 5 Overall recovery 50% 25% 21% 40% Rest period 20% 17% Dump 2 Dump 9-10 30% 13% 92% 15% Dump 6 20% 33% 10% 6%
Slide 17: Environmental monitoring
Environmental monitoring • 105 monitoring boreholes covering large area adjacent to trench • Six monitoring drainage sumps • Weekly sampling and assaying • External analytical control of samples • Constant analysis and review of data • Third-party sampling, testing and reporting • Review and audits
Slide 18: Social responsibility
Social responsibility • CSR Director appointed May 2013 • In excess of 418,000 man-hours with no lost-time injuries in 2013 and 1.6 million man-hours since July 2010 • Over 95% of the 217-strong workforce recruited from local communities • $178,000 contributed to local community projects in 2013 • S
Slide 19: Project expansion
Project expansion COMMITTED EXPENDITURE • $2.6m for additional boiler capacity facilitating 2014 target of 11,000t Existing SX-EW plant EXPANSION POST TRANSACTION • Additional mixer-settler • Additional EW tank house Western Dumps • Expansion of electrical sub-station • 2 off 12km pipelines for PLS
Slide 20: Update and Outlook
Update and Outlook
Slide 21: Copper Bay investment
Copper Bay investment • Chañaral Bay copper recovery project located 800km north of Santiago, Chile • CAML acquired 50% in 2013 for £2m • Deposit comprising copper tailings over 13km2 beach and bay area • Non-JORC compliant resource of 116Mt at 0.25% Cu for 290kt of contained copper • Metallurgical
Slide 22: Update and outlook
Update and outlook UPDATE TO 31 MARCH 2014 • 1,905t of copper produced in Q1 2014 (yoy +13.7%) • Q1 2014 sales: 1,771 tonnes (yoy +15.7%) • Cash and cash equivalents $44.5m* • Proposed 2013 final dividend of 5p (9p FY) OUTLOOK FOR 2014 • 11,000 tonnes of copper production • Completion of Kounrad Tra
Slide 23: Appendices
Appendices
Slide 24: Structure and ownership
Structure and ownership MAJOR SHAREHOLDERS* No. of shares % Holding LEGAL AND GENERAL GROUP 8,870,750 10.42 Central Asia Metals Plc HARGEAVE HALE 8,431,373 9.90 (UK) COMMONWEALTH AMERICAN PARTNERS 7,445,492 8.75 MONTOYA INVESTMENT 6,011,336 7.06 LANSDOWNE PARTNERS 4,344,217 5.10 100% 100% 100% 50% D
Slide 25: 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 26: 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 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: Boiler-house capacity upgrade
Boiler-house capacity upgrade • Two additional 2.8MW boilers on schedule for commissioning by October 2014 • Manufactured in China and ready for shipment to Kazakhstan end April • Building extension steelwork fabricated and ready for shipment to Kazakhstan end April • 90% of all locally-sourced mate
Slide 29: 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 Standard & Poor • 5.95% GDP growth rate (2013 estimate) MINING
Slide 30: 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 31: Board of directors
Board of directors Nigel Hurst-Brown Nick Clarke Robert Cathery Non-Executive Chairman Dr Michael Price Chief Executive Officer Non-Executive Director Non-Executive Director Nurlan Zhakupov Kenges Rakishev Howard Nicholson Non-Executive Director Nigel Robinson Non-Executive Director Technical Direct
Slide 32: 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 33: Kazakhstan management
Kazakhstan management Pavel Semenchenko General Director, Sary Kazna With 22 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. Saken Ashirbekova General Directo
Slide 34: Contacts
Contacts 11 Albemarle Street, London, W1S 4HH 11 Albemarle 11 +44 207 898 9001 info@centralasiametals.com www.centralasiametals.com 34