Central Asia Metals Share Discussion Threads

[florenceorbis] 18/9/2022 07:48

Dividend

The Company's dividend policy is to return to shareholders a target range of between 30% and 50% of FCF, defined as net cash generated from operating activities less sustaining capital expenditure. Dividends will only be paid provided there is sufficient cash remaining in the Group to meet any ongoing contractual debt repayments and that any banking covenants are not breached.

Total dividends paid to shareholders during the period of $27.8 million comprised the final 2021 dividend of 12 pence per Ordinary Share.

In conjunction with CAML's H1 2022 results, the Board has declared an interim dividend for the period of 10 pence per Ordinary Share which represents 40% of FCF in line with this policy. The interim dividend is payable on 21 October 2022 to shareholders registered on 30 September 2022. This latest dividend will increase the amount returned to shareholders in dividends and share buy-backs since the 2010 IPO to $277.3 million.

Going concern

The Group sells and distributes its copper product primarily through an offtake arrangement which is in place until 31 December 2022 whereby Traxys commits to buy a minimum of 95% of Kounrad's cathode. The Group sells 100% of Sasa's zinc and lead concentrate product through an offtake arrangement with Traxys which has been fixed through to 31 March 2023. The Company is confident that new offtake arrangements will be put in place at both Sasa and Kounrad to ensure continuity of sales.

The Group meets its day to day working capital requirements through its profitable and cash generative operations at Kounrad and Sasa. The Group manages liquidity risk by maintaining adequate committed borrowing facilities and the Group has substantial cash balances as of 30 June 2022.

The Board has reviewed forecasts for the period to December 2023 to assess the Group's liquidity which demonstrate substantial headroom. The Board have considered additional sensitivity scenarios in terms of the Group's commodity price forecasts, expected production volumes, operating cost profile and capital expenditure. The Board have assessed the key risks which could impact the prospects of the Group over the going concern period including commodity price outlook, cost inflation and supply chain disruption together with reverse stress testing of the forecasts in line with best practice. Liquidity headroom was demonstrated in each reasonably possible scenario. Accordingly, the Directors continue to adopt the going concern basis in preparing the consolidated financial information.

Outlook

The Directors closely monitor the situation in Ukraine and its impact on the Company's cost base. Given recent cost inflation and also the decline in commodity prices, in particular copper since the beginning of June, the Company's focus on cost control has been strengthened to maximise value creation and cash flow. However, energy prices are largely outside the Company's control.

The Company remains on track to meet the 2022 production output guidance from Sasa and Kounrad. CAML has a strong balance sheet with the Traxys corporate debt facility fully repaid in August 2022.

[florenceorbis] 18/9/2022 07:42

Strong Supports at 216p and 207p apparently

[melton john] 15/9/2022 19:15

Cheers Zho, much how I thought things would pan out with China. They get Kasakh oil, without breaking sanctions and upsetting Biden. Bought more today, the market for copper is a bit smaller but I reckon Caml is probably the cheapest producer. Putin has enough with Ukraine and now Georgia, Chechnya and Azerbaijan getting restless.

[zho] 15/9/2022 15:30

China Isolates Russia

Vladimir Putin has suffered a serious military setback in his war in Ukraine in recent days, but China’s Xi Jinping dealt him a second, diplomatic blow on September 13. He “warned” any country against meddling in Kazakhstan, days before the two leaders meet today (September 15) face-to-face. This was meant for Russia because the Kazakhs have been in Putin’s cross hairs since June after their leader openly criticized the war in Ukraine, and then announced that Kazakh oil exports would be diverted to help Europe. Russians blocked the exports, and hinted that Kazakhs may be invaded like Ukraine. But this week Xi waded in by pledging to protect the country from invasion in a private meeting with leaders that was leaked. “We [China] will resolutely support Kazakhstan in the defense of its independence, sovereignty and territorial integrity.” This amounted to a pre-emptive rebuke by Xi, aimed at Putin’s Imperialism. No matter what the two say publicly after their meeting today as to how strong their ties are, China is distancing itself from Putin as his war in Ukraine falters.

Continued....

[dougmachin] 15/9/2022 12:41

PXC going bananas though.

[dougmachin] 15/9/2022 11:17

Why is anyone selling?
This has just announced record results and a 25% increase in the divi.
It's going ex-divi in about 14 days.
WTF are people on?
Who is selling right now and why?
I get if you want to sell post the ex-divi date, but right now, I can not fathom!!

[lord gnome] 14/9/2022 20:21

Good numbers, decent divi increase giving a great yield, looking for next deal. What's not to like? Happy to hold.

[dcarn] 14/9/2022 19:54

Divi paid 21st Oct.

[warranty] 14/9/2022 19:13

Can’t see the dividend dates, anybody know them?

[zho] 14/9/2022 14:46

Central Asia Metals ups dividend despite dark clouds

The low-cost miner has paid off its Sasa debt and sees record half for cash profits, while global conditions point to tougher road ahead

[nk104] 14/9/2022 12:44

Or it could just be a down day for the market as a whole, so CAML suffers despite the excellent results.

[gotabsirius] 14/9/2022 08:32

Yes, fixed contract expired end of June. They are getting their pants pulled down with the rest of us now. Hence the drop

[spoole5] 14/9/2022 08:30

As usual a damp squib from the market!

[uapatel] 14/9/2022 08:29

Not sure gotabsirius. Maybe find out on investormeet call this afternoon.

[gotabsirius] 14/9/2022 08:25

Has that not ended?

[uapatel] 14/9/2022 08:16

Nice fixed price electricity contract on Sasha. Good spot that Metis20

[mount teide] 14/9/2022 07:56

Tremendous set of results - this management is as reliable as a Swiss clock - delivering industry leading results year after year - company deserves a much higher valuation than the market is giving us.

[metis20] 14/9/2022 07:27

"It is a great pleasure to report a record interim financial performance for the first half of 2022, with EBITDA up 16% and FCF up 7% period on period. These results reflect increased metal prices to some extent counteracted by inflationary pressures but notwithstanding this, our costs during H1 2022 were well controlled with increases mitigated by weaker operating currencies and a fixed price electricity contract at Sasa. We are therefore delighted to declare an interim dividend of 10 pence per share."

NB "..fixed price electricity contract at Sasa.."

[uapatel] 14/9/2022 07:21

Increase in dividend and debt repayment done. Looks positive

[j4ckthehat] 12/9/2022 20:47

Looking at the chart there's every possibility this goes close to the ATH with this move

[haywards26] 12/9/2022 12:39

Nice share price movements of late, hoping for 260+ this week.

[leopoldalcox] 11/9/2022 11:13

Only that they will be more energy intensive than the copper ops, and situated in Europe, probably hit badly by the energy crisis

[gotabsirius] 11/9/2022 10:08

Any thoughts on costs from Macedonia opps?

[melody9999] 09/9/2022 17:20

Thank you Sant - lets hope my shrewdness pays dividends!

Exited CAML when Ukraine kicked off for fear of contagion. Back in today at under 220p early doors, with a follow on purchase at 225p, after continuing to follow CAML and seeing the good update recently. Looking for increased divi at end of month and recovery of metal prices after recent falls to take CAML back above 250p.