Central Asia Metals Plc · LSE:CAML
Central Asia Metals — H1 2023 Earnings Presentation
38 slides from Central Asia Metals's earnings presentation, Sep 13, 2023
Slide 1: H1 2023 Results
H1 2023 RESULTS 13th September 2023 1
Slide 2: Disclaimer
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 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 f
Slide 3: H1 2023 Results Summary
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 H1 2023 RESULTS SUMMARY CREATING VALUE FOR ALL STAKEHOLDERS EBITDA $48.9m DEBT REVENUE FREE $99.3m FCF CASH DIVIDEND $24.1m $50.6m (Adjusted) 9p EBITDA LTIFR MARGIN 2022 Zn 0.80 49% 3
Slide 4: Financial Results
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 01 FINANCIAL RESULTS
Slide 5: Market Conditions H1 2023
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 MARKET CONDITIONS H1 2023 – Commodity prices adversely affected by: – Kazakhstan WHT on intercompany dividend distributions increased from 0% to 10% and MET – Poor economic performance, consumer confidence increased from 5.7% to
Slide 6: H1 2023 Income Statement
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 H1 2023 INCOME STATEMENT EBITDA, $48.9m - margin 49% Highlights H1 H1 % change 2023 2022 – Kounrad Revenue $54.7m Gross revenue, $m 99.3 119.5 -17% – Kounrad EBITDA $39.2m - margin 72% Cost of sales, $m (44.6) (40.6) +10% – Sasa
Slide 7: EBITDA H1 2023 vs H1 2022
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 EBITDA H1 2023 VS H1 2022 H1 2023 Cu price H1 2023 9% Pb price lower 48.9 6% lower H1 2023 Zn price 28% lower – c.80% of EBITDA reduction related to weaker commodity prices 7
Slide 8: H1 2023 Kounrad C1 Copper Cash Cost
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 H1 2023 KOUNRAD C1 COPPER CASH COST H1 H1 H1 H1 H1 2023 C1 cash cost $0.67/lb Cost 2023 2022 2023 2022 $m $m $/lb $/lb $0.04/lb HoH cost increase includes: Reagents 1.6 1.5 0.11 0.10 – Increase in payroll costs by $0.02/lb, agre
Slide 9: H1 2023 Sasa Run of Mine Costs
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 H1 2023 SASA RUN OF MINE COSTS H1 2023 RoM unit cost $56.2/t H1 H1 H1 H1 C1 cash cost 2023 2022 2023 2022 $10.7/t HoH cost increase, includes: $m $m - Increased labour costs across site, $4.0/t, agreed RoM mine, t 396,234 402,20
Slide 10: 30 June 2023 Balance Sheet
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 30 JUNE 2023 BALANCE SHEET Strong balance sheet 30 June 31 Dec 2023, $m 2022, $m PPE 335.2 322.0 – Group cash balance, $50.6m (2022: $60.6m) Intangible assets 26.2 26.6 – Debt free, undrawn working capital facilities available o
Slide 11: H1 2023 Capex
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 H1 2023 CAPEX H1 2023 GROUP CASH CAPEX OF $11.3M (H1 2022: $8.0M) Development projects $7.1m, including: 2023E cash capex Sasa $28-30m – Paste Backfill Plant and UG reticulation, $2.1m – Central Decline, $1.4m – Dry Stack Tailin
Slide 12: H1 2023 Cashflow
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 H1 2023 CASHFLOW H1 23 H1 22 $m $m Net cash generated from 24.1 56.6 $m operating activities 50.6 Plus: interest received 1.0 0.1 Less: sustaining capex (4.2) (4.5) FCF 20.9 52.2 Adjustment for KZ WHT 3.2 - Adjusted FCF 24.1 52.
Slide 13: Operations
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 02 OPERATIONS
Slide 14: CAML Operations
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 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) - H1 2023 production, 9,764t zinc and 13,734t lead - 2023 pr
Slide 15: Production
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 PRODUCTION H1 2023 production On track to achieve full year guidance - Copper 6,716t - Copper 13,000–14,000t - Zinc 9,764t - Zinc in concentrate 19,000-21,000t - Lead 13,734t - Lead in concentrate 27,000-29,000t Kounrad copper p
Slide 16: Investment & Innovation: Kounrad Solar Power Plant
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 INVESTMENT & INNOVATION KOUNRAD SOLAR POWER PLANT ON TRACK FOR COMPLETION H2 2023 - Kounrad engineering team well advanced with construction of 4.77MW unit - All equipment and materials delivered to site - 78% of installation wo
Slide 17: Investment & Innovation: Transition to Paste Fill Mining at Sasa
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 INVESTMENT & INNOVATION TRANSITION TO PASTE FILL MINING AT SASA Paste Backfill (PBF) Plant Transition to paste fill mining - Construction of PBF plant materially complete - Paste fill mining method to be initially undertaken on
Slide 18: Investment & Innovation: Central Decline and Dry Stack Tailings
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 INVESTMENT & INNOVATION TRANSITION TO PASTE FILL MINING AT SASA Central Decline Dry Stack Tailings (DST) - 4.5m x 4.5m decline providing more efficient - DST Plant project construction has commenced access and improved ventilati
Slide 19: Sustainability – Strategy and H1 2023 Progress
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 SUSTAINABILITY – STRATEGY AND H1 2023 PROGRESS SUSTAINABILITY 2023 AND / OR LONG-TERM TARGET PILLAR During H1 2023, CAML DELIVERING VALUE Zero human rights abuses THROUGH STEWARDSHIP Implement Group-wide supplier screening platf
Slide 20: Sustainability at Kounrad
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 SUSTAINABLITY AT KOUNRAD Contributed Employed2 Suppliers Taxation Employment $2.6m 337 staff $11.4m $247.0m 100% to support local spent with local paid in tax to the development projects1 suppliers in Kazakhstan3 Gov. of Kazakhs
Slide 21: Sustainability at Sasa
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 SUSTAINABILITY AT SASA Contributed Employed2 Suppliers Taxation Employment $2.0m 737 staff $54.0m $78.5m 98% to support local paid in tax to the development projects1 spent with local Gov. of North Macedonia1 Local2 suppliers in
Slide 22: Capital Allocation / Outlook
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 03 CAPITAL ALLOCATION/ OUTLOOK
Slide 23: CAML Business Development Strategy
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 CAML BUSINESS DEVELOPMENT STRATEGY Type of opportunity Affordability H1 2023 summary - Earlier stage exploration - CAML’s strong balance sheet opportunities largely in our with no debt and strong cash local jurisdictions generat
Slide 24: Business Arrangement with Terra Exploration
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 BUSINESS ARRANGEMENT WITH TERRA EXPLORATION EARLY-STAGE EXPLORATION IN KAZAKHSTAN - CAML entered into an arrangement with Kazakh explorers, Terra Exploration - Terra comprises early-stage exploration geologists with significant
Slide 25: Business Development on a Platform Trusted to Create Stakeholder Value
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 BUSINESS DEVELOPMENT - ON A PLATFORM TRUSTED TO CREATE STAKEHOLDER VALUE DIVIDENDS PAID TO SHAREHOLDERS SINCE 2012 OF $318.8M Kounrad CAML trusted to find - Equity investment of $60m 350 the right deal - Total capex and innovati
Slide 26: Summary and Outlook
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 SUMMARY AND OUTLOOK A strong balance sheet - Dependable financial performance - Sector-leading dividend yield - Producing the metals essential for modern living safely and sustainably Capital allocation priorities - H1 2023 divi
Slide 27: Contact Details
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 CONTACT DETAILS GROUP INVESTOR RELATIONS MANAGER Emma Chetwynd Stapylton Sackville House 40 Piccadilly London W1J 0DR ec@caml.uk +44 (0) 207 898 9001 www.centralasiametals.com
Slide 28: Appendices
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 APPENDICES
Slide 29: Share Price / Shareholders
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 SHARE PRICE/SHAREHOLDERS SHARE PRICE PERFORMANCE VERSUS PEERS 280 Share price* (AIM:CAML) 206.0 pence 260 Total no. voting shares 181,904,941 240 220 Treasury shares 193,325 200 Issued shares 182,098,266 180 Market capitalisatio
Slide 30: Board of Directors
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 BOARD OF DIRECTORS Mike Prentis Nick Clarke Nigel Robinson Gavin Ferrar Roger Davey David Swan Senior Independent Director Non-Executive Chairman CEO CFO NED NED Chair - technical experience - accounting experience NED - Nominat
Slide 31: Copper – Supply Deficit Remains
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 COPPER – SUPPLY DEFICIT REMAINS Early 2023 optimism slows Copper Market Balance • Since reaching a high of more than US$9,000/t, copper prices 600 $5.0 have decreased, but remain relatively stable above the US$8,000/t mark in re
Slide 32: Zinc – Tight Market Despite Demand Weakness
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 ZINC – TIGHT MARKET DESPITE DEMAND WEAKNESS Zinc market to see slight uptick in supply Zinc Market Balance 1,000 $4,000 – Zinc prices retraced, hitting high in January, recording lowest levels in May, just above US$2,200/t Surpl
Slide 33: Lead – Improving Supply to Pressure Near-Term Prices
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 LEAD - IMPROVING SUPPLY TO PRESSURE NEAR-TERM PRICES Lead Price Chart $2,600 Lead prices stabilise with market tightness to ease – Lead (“LME”) prices retraced since hitting high in December 2022, $2,400 but remain relatively st
Slide 34: Kounrad Copper Operation
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 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 Remaining village recoverable resources 22 Eastern Dumps 3,900t Western Dumps 101,000t Total 104,900t 34
Slide 35: Sasa Zinc and Lead Mine
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 SASA ZINC AND LEAD MINE - Skarn hosted deposit in North Macedonia - Sub-level caving operation, transitioning to paste fill method this year - Reserves and resources to 2039 35
Slide 36: Kounrad Resources and Technology
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 KOUNRAD RESOURCES AND TECHNOLOGY Category Quantity, Grade (%) Contained Mt 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
Slide 37: Mineral Resource Estimates for Svinja Reka and Golema Reka - Sasa
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 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 updat
Slide 38: Svinja Reka Ore Reserve Statement
CENTRAL ASIA METALS PLC | H1 2023 RESULTS PRESENTATION | SEPTEMBER 2023 SVINJA REKA ORE RESERVE STATEMENT 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