Central Asia Metals Share Discussion Threads

[zangdook] 30/3/2023 02:35

It's arguably better to have 10p + 10p than 8p + 12p; you get more regular income and 2p of it earlier in the year. Perhaps it was a calculated adjustment.

[bozzy_s] 29/3/2023 20:16

Hope you guys are right. It's quite rare to see a company in good shape raise its interim, and lower its final dividend. More likely to see that with struggling firms.

Obviously the lower-than-expected dividend, and the one-off write off, caused a bit of a blip on a day the market was up. I guess we're lucky it wasn't a bloodbath day on the market - could've lost 30p!

Not sure what forward yield these offer. Today's cut makes that difficult. Probably expect 18p or 20p, for 7.5% - 8.3% @ 240p. Decent. But not a certainty. And there are better (if riskier) offerings out there.

[rettah] 29/3/2023 16:31

That was my thinking as well.

[lord gnome] 29/3/2023 16:22

I think that holding back on the dividend and conserving cash could indicate that they have an acquisition in the offing.

[tag57] 29/3/2023 16:12

Dougmachin - agree on your comment regarding the presentation. I only invested 6 months ago once seeing the management present etc. Much better than a few I have seen.

Shame about the final divi but probably a reflection of the 2nd half being a bit tougher than they expected.

[dougmachin] 29/3/2023 15:33

Well, I think that was a thoroughly professional presentation from a competent team.

Happy Louise added some 'colour' to my question.
Looking for a scale changing acquisition. Or an early stage producer. Or both.

1 billion $ company...

[zho] 29/3/2023 11:38

Central Asia Metals keen on earlier-stage acquisitions

Now in a net cash position, the company's CEO said acquisitions that could be built out just using cash flow would be the focus

[scrwal] 29/3/2023 11:30

The dividend being lower may have spooked the market but I think it's the 2023 guidance of lower production of zinc and copper and possible no growth in lead.

[melton john] 29/3/2023 11:18

Three years since I first bought some CAML and first posted here my reasoning. My lowest price was 148p and I've bought a good few more since then and collected a few good divis. I originally worked in electrical engineering and forecast a large increased demand for copper to connect all the wind and solar farms powering the renewable energy revolution. Glad I did but this drop in price is like the COVID panic of 2020, an opportunity for others with far sightedness to get on board or increase.

[kael] 29/3/2023 10:06

Impairment charge and no move on the dividend, which I think the market was expecting after no debt costs going forward provides the opportunity to mark this down. Even with static dividend this makes the price even more tempting for yield seekers however. This will wash itself out. Growth is a thorny issue in that searching an elusive bargain acquisition may take time and long term future projections into prices is needed - rare earth would be ideal from my pov in the current market cycle. Credit is tight and not favourable terms, asset values should reflect that...it's a waiting game.

[bluemango] 29/3/2023 08:41

Impairment charge for SASA results from a year end assessment giving a slight reduction in annual throughput over life of the mine (830,000 tonnes from 900,000) and an increase in the discount rate used to calculate net present value of future cash flows.

All under Income Statement heading, towards the end of the report.

What spooked the market, I expect, was the fact that although the interim dividend had increased from 8p to 10p, there might have been an expectation that the final dividend would at least match last year's 12p. In the end the total was the same as last year's 20p annual div.

[rimau1] 29/3/2023 08:40

Tag 57 - fair challenge but yes it is too simplified. I am a LTH at TKO and they recently bought out the minority holder of their producing copper mine for less than book value. Granted this is in Canada but CAMl should spread their wings.

[dougmachin] 29/3/2023 08:26

I reckon the reduced cash flow.

It seems that unless results (for anything) are smashing it out the park, there's a mark down.

Can anyone please shed some light on the non-cash impairment charge. Thanks.

[frazboy] 29/3/2023 08:08

So what spooked the market? The non-cash impairment charge? Reduced free cash flow flow? The latter, surely to be expected. Only glanced at the results but didn't see much detail on the former.

[tag57] 29/3/2023 07:46

Rimau1 if you had a developing copper mine in today’s market, with the expectations for future pricing of copper over the next decade plus, would you sell up cheaply because of increasing costs? I know I wouldn’t. I know this oversimplifies things but I can appreciate the difficulties they are probably finding as they look at their next major investment.

[dougmachin] 29/3/2023 07:29

spoole5 - but the divi's real !!

Get more in the 230's is my view. Thought that boat had sailed.

Especially as the 187 mill has been fully repaid.

[bluemango] 29/3/2023 07:17

8.51% yield with demand for copper only likely to increase.

I'll settle for that. Firm hold.

[the count of monte_cristo] 29/3/2023 07:13

By the time they will find a project the prices will have risen and they will be paying more.

[rimau1] 29/3/2023 07:10

CAML has been needing to buy growth for the past 2 years, management maybe too prudent but that might be harsh. 17 NDA’s signed and only 2 site visits feels limp. The positive is that it should be easier to acquire in 2023 given rising input costs. No position.

[spoole5] 29/3/2023 07:07

That's the divi gone in the first 5 mins!

[dougmachin] 29/3/2023 06:40

Surely this is one of the best bits:

Strong balance sheet

-- Cash in the bank as at 31.12.2022 of $60.6 million (2021: $59.2million)
-- Fully repaid $187.0 million corporate debt facility
-- Non-cash impairment charge for Sasa of $55.1 million

[dougmachin] 29/3/2023 06:36

"Following this strong performance, we propose a 10 pence per share final dividend, resulting in a full year dividend of 20 pence per share, comparable with 2021. The full year dividend represents 47% of our 2022 FCF and is in line with our stated policy of 30% to 50% of FCF.

[cthompso] 29/3/2023 06:26

Rock solid results as normal, especially given the swings in energy prices/inflation that have impacted others.Looking forward to learning more on the call.

[spoole5] 29/3/2023 06:05

10p final divi. Disappointing.

[tag57] 28/3/2023 22:11

On their site it says 9am?