Central Asia Metals Share Discussion Threads

[morph7] 09/1/2013 08:04

You most definitely are not NHB!Was aboard back in October. Pat on the back for me as I was estimating 6500 tonnes for the year.
here is the RNS if anyone missed it.

CENTRAL ASIA METALS PLC

("CAML" or the "Company")

2012 Production Update

Highlights:

-- Kounrad 2012 production of 6,586 tonnes of copper
-- 6,383 tonnes of copper sold in 2012
o 6,063 tonnes sold through the Company's offtake arrangements with Traxys

o 320 tonnes sold locally in Kazakhstan

-- CAML Group cash balance as at 31 December 2012 of $37.5 million
Kounrad Production Update

The total output for the year endied 31 December 2012, which comprised only eight months of actual production following the completion of the construction phase in late April 2012, was 6,586 tonnes of copper. The revised 2012 production target of 5,750 tonnes was exceeded by over 14%.

6,383 tonnes of copper were sold during the period of which 6,063 tonnes were sold through the Company's off-take arrangements with Traxys and 320 tonnes sold locally in Kazakhstan.

Despite the onset of winter, with December dawn temperatures averaging -19 degrees Celsius and an 8 day period when it averaged -32 degrees Celsius, copper production was maintained on site and is continuing at a steady state. Q4 2012 production at the SX-EW plant was 2,117 tonnes, once again exceeding the Company's expectations.

Nick Clarke, Chief Executive Officer commented:

"2012 has proved to be a very successful first period of production for the Company at Kounrad and I am particularly pleased that we have been able to continue the production of copper cathodes in the challenging weather conditions experienced from November 2012.

The production of 6,586 tonnes of copper in 2012 is a tremendous achievement and reflects the hard work, dedication and professionalism of our staff on site. Our Kounrad production objectives for 2013 are focussed on an output of 10,000 tonnes of cathode copper and to maintain tight control on costs.

During Q1 2013 we will publish a JORC compliant resource statement for Kounrad as well as continuing with the preparation and feasibility work to facilitate a decision on a potential second SX-EW plant at Kounrad in 2013."

[nhb] 09/1/2013 07:55

More good news today. I hope I'm not alone in this share now?

[nhb] 02/1/2013 08:51

No stopping this one now it seems.

[paleje] 17/12/2012 10:09

Cheers Morph7, as we suspected

[morph7] 16/12/2012 07:33

And todays midas update

MIDAS UPDATE: Central Asia Metals we tipped issues special dividend
By JOANNE HART, FINANCIAL MAIL ON SUNDAY

PUBLISHED: 22:21 GMT, 15 December 2012 | UPDATED: 22:21 GMT, 15 December 2012

Comments (0)
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Good news for investors in Central Asia Metals, the copper producer that Midas recommended in July.

Last week, the company said it would pay a maiden interim dividend of 3.3p a share and a special dividend of 3.7p a share, following better-than-expected interim figures in September and robust production since.

The group also said it expects to pay a final dividend of about 3.3p next March and anticipates paying an annual dividend for the foreseeable future.


Copper production: Central Asia Metals is based in Kazakhstan

The company is based in Kazakhstan but is run by British chief executive Nick Clarke. Copper production only began last April and in July Clarke said he expected to produce 5,000 tons this year.

By September, the forecast had been raised to 5,750 tons and last week the group said production should be at least 6,250 tons by December 31.


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Clearly, the more copper is produced, the better Central Asia Metals does, particularly as the company has lower costs than many other miners and the price of copper has risen from $7,400 (£4,625) a ton in the summer to $8,100 a ton.

Midas verdict: The company's share price has risen by 17 per cent from 90p to 105p in the past five months and most of the increase came after the dividend announcement. Clarke is sending a clear message that he intends to look after shareholders, so existing investors should take note and keep their stock.

New investors have until January 18 to buy shares and access the interim and special dividends. It should be a worthwhile investment.

[morph7] 16/12/2012 07:32

From Minesite:-

December 17, 2012

Shares In Central Asia Metals Spike Sharply Upwards, Following The Announcement Of Bumper Dividend Payouts.

By Alastair Ford

"All of a sudden", says Nick Clarke of CENTRAL ASIA METALS , "people are saying: 'great results – you must come in and tell us your story!'".

Why is such sudden favour being bestowed upon Central Asia? Simple – in a market that's crying out for returns, the company has started paying dividends, and chunky ones too.

On 13th December Central Asia stated that it will pay a maiden interim dividend of 3.3p per share, plus a special dividend of 3.7p per share, for a total payout of US$9.5 million.

In response the shares shot up from 93p to 103.5p on the day, and rose a further 8p to 111.5p the day after.

In the same announcement Central Asia also undertook to pay a final dividend at a similar level to the interim payout, and set out a clear policy linking future payments to revenues.

Further dividends will be calculated as a percentage of revenues from the company's producing Kounrad copper project in Kazakhstan, and will be not less than 20 per cent of such revenues.

That sets out a clear marker - investors know where they stand, and they know how to calculate what they'll receive in the future. It's a simple proposition, and for that reason very investable.

Discounting the special dividend, the payout puts the company on a yield of around six per cent, which is more than you'd get in your bank, and indeed more than you'd get out of most junior producers.

But Nick, and finance director Nigel Robinson, are keenly aware of prevailing trends in the market at the moment.

Not for nothing have fund managers recently taken to berating mining company executives for failing to deliver value – the fund managers are themselves under pressure from their own investors, and companies that underperform are likely to receive short shrift in a world where cash is tight and returns are meagre.

"Myself and Nigel Robinson do a lot of investor meetings", says Nick. "I'm trying to be very focussed on the management of investors' money. Investors' money is there for me to make some money for them. But unless we return some money, fund managers won't come in for the next deal."

Not that Central Asia has any requirement for further funding at the moment. Quite the contrary. Even allowing for the dividend payouts, there's plenty of cash in the bank. Currently the company is sitting on a cash pile of nearly US$30 million, and with Kounrad producing way ahead of initial expectations, there'll be plenty more cash rolling in on a regular basis from here on in.

The key test for Kounrad really was the Kazakh winter. It was the well known extremes of cold in which Central Asia Metals is operating that led the company initially to be somewhat cautious on its output forecasts for this year. These were originally set at 5,000 tonnes of copper. But as at the second week of December, with a couple of weeks still to go, the company had already produced 6,250 tonnes.

Big tick in the box. "The temperatures in November got down to -15˚", says Nick. "This month we're getting down to -24˚, -25˚, and all I can say is: production is still coming out."

That outperformance was a strong deciding factor when it came to making a decision about the dividend payment. Central Asia had always said it was open to making such a payment, and some brokers, such as Canaccord, had already factored some sort of payout into their models.

But the size of the payout surprised everybody pleasantly on the upside. The additional cashflow from Kounrad was key, but it was also helpful that construction costs at Kounrad came in at US$8 million under budget. Combined, those two factors allowed Central Asia room for manoeuvre.

But what of that oft-repeated mantra of junior miners that dividend payouts now come at the expense of future growth later? Nonsense, says Nick.

Central Asia has long planned to spend around US$50 million on doubling capacity at Kounrad, and is now only awaiting a slightly cumbersome bureaucratic process to play itself out in the corridors of the Kazakhstan government before it presses go.

Company modelling has shown that the money to do so will be available, and that the initial part will be covered by that chunky cashpile and not at all compromised by the dividend payment.

If that looks like a shortfall, it isn't – for two related reasons. Firstly, because there won't be a debt component, it won't be necessary to come up with all the necessary money straight away.

And, depending how long the Kazakh government takes in allowing Central Asia to complete its acquisition of 100 per cent of Kounrad, there ought to be several quarters worth of cash flow added to the kitty before construction gets going in earnest.

"We're not being racy", says Nick.

Quite the reverse. "We can still construct a second plant and pay the dividend, and we've modelled it down to very conservative copper prices. There's more than sufficient firepower to maintain 20 per cent of attributable revenue as a dividend. If a decision to go is made in the middle of next year, the bulk of the expenditure will take place in early 2014. You don't need all the money on day one. We've got ongoing cashflows that would fund the construction and our model allows us to maintain the annual dividend."

It's a nice position to be in. The copper price continues strong in the face of depleted stockpiles worldwide and relatively good demand. At total costs of US$0.85 per pound, including distribution, selling costs and taxes, Kounrad will continue to make comfortable margin. The housing market in the US is picking up, and investors have show they are keen to back a company that engages proactively with the market and is keen to give something back. No wonder Central Asia is in demand.

The next news will be a full year production update in January, which will be worth looking out for, and then after that, news on the Kazakh government granting Central Asia the right to go from 60 per cent to 100 per cent of the asset.

[morph7] 14/12/2012 11:03

lol paleje. I was thinking exactly the same thing a few minutes ago!

[paleje] 14/12/2012 10:47

Might get a bit of press coverage over next few days, Daily Mail were tipping these back in the summer @90p with a view to doubling in 2013, they often like to update when they're going well.

[morph7] 13/12/2012 17:20

Another buy update from IC

After a bumper first year of copper production, miner Central Asia Metals (CAML) has declared maiden dividends totalling 7p a share. The company will pay a half-year dividend on 1 February 2013 of $4.5m (£2.8m), or 3.3p a share, as well as a special dividend of $5m, or 3.7p a share. It also expects to declare a final dividend of a similar amount to the half-year dividend in March 2013.

Central Asia is now one of only three Alternative Investment Market-traded mining companies that pay a dividend. Broker Canaccord Genuity forecasts adjusted EPS of 14¢ in 2012 and 28¢ in 2013. That means Central Asia's shares boast a dividend yield of over 10 per cent for this year, dropping to a still compelling 7 per cent in 2013.

The company also announced copper production from the Kounrad project in Kazakhstan has exceeded expectations, yet again. It has produced 6,250 tonnes of 99.9 per cent LME grade copper cathode in the year to date, surpassing the increased production target for 2012 of 5,750 tonnes announced in September 2012.

SHARE TIP UPDATE:
Our summer buy tip is now up 26 per cent and we remain very bullish on the shares. The Kounrad project is churning out strong cash flow and Central Asia also holds $29.3m of cash in its treasury. Yet the shares are only trading at 3.4 and 2.5 times Canaccord's 2013 and 2014 estimates of enterprise value to cash profits, suggesting plenty of upside potential as investors catch on to the inherent value in the company. We hope the conclusion of the SAT transaction in first half of 2013 will be another positive catalyst, enabling the company to sanction a second plant at Kounrad. At 101p, buy.

[morph7] 13/12/2012 14:54

What I think we will see in the coming weeks is more institutional support as now the shares are on the dividend map.
This is because there are many unit trusts, ETF's etc, that cannot buy into companies because they don't pay a dividend. Obviously this isn't the case now with CAML.

Another interesting point worthy of note is the statement by the CEO mentioning the boards intention:
"The implementation of an annual dividend policy also reflects the importance the Company places on delivering meaningful cash returns to our shareholders and sustainable value creation".
As we've seen with the declaration of the special dividend today-the board isn't going to shy away from distributing more money to shareholders down the line.

I think a special mention is also worthy for the short space of time from the ex
div date to the payment date. Bravo for it being such a short space of time and credit to the board for implementing this. Many companies hoard OUR (dividend) cash for months on end before finally releasing it on payment date. Not so the cased with CAML.

[amelio] 13/12/2012 14:09

Plenty of delayed buys popping up during the course of the day.

[amelio] 13/12/2012 11:11

101p to sell.

[amelio] 13/12/2012 11:08

That'll learn ya! :-)

Still expect this to breach 100p soon - was a very upbeat release this morning -and if it does there's every chance it will form a new support level and platform for further gains.

[nhb] 13/12/2012 11:02

Darn it! Left it too late and the price just popped 10%!

[nhb] 13/12/2012 08:48

Lovely jubbly. I may buy a few more too.

[amelio] 13/12/2012 08:08

Great news this morning. Another few k for me first thing.

[morph7] 13/12/2012 07:32

BOOM!!!!!
MERRY CHRISTMAS EVERYONE!!!!

13 December 2012



CENTRAL ASIA METALS PLC



("CAML" or the "Company")



CAML announces maiden dividends

Highlights:

· Annual dividend policy adopted

o Maiden interim dividend of $4.5 million declared, equivalent to 3.30 pence per ordinary share

o Final dividend of a similar amount currently expected to be declared in March 2013

o In addition, special dividend of $5.0 million declared, equivalent to 3.70 pence per ordinary share

· Kounrad production exceeds 6,250 tonnes of copper in first eight months of production

· Current CAML Group cash balance of $29.3 million


Annual Dividends

CAML is pleased to announce that it is adopting a dividend policy which will result in the Company paying annual dividends to its shareholders. The annual dividend will be calculated as a percentage of the attributable revenues earned from its SX-EW copper project at Kounrad, Kazakhstan and will be a minimum of 20% of such revenues. The payments will be will be made by means of an interim and final dividend subject to the Company's cash reserves providing a dividend cover of three times or greater.

For 2012, due to the particularly strong cash-flows generated by the Kounrad project, the Company is targeting to distribute 30% of the attributable revenue. The Directors have therefore declared a maiden interim dividend for the year of $4.5 million. This equates to 3.30 pence per ordinary share based on an exchange rate of £1 = $1.60. The ordinary shares will go ex-dividend on 16 January 2013 and the interim dividend will be payable to all shareholders registered at the record date of 18 January 2013 and will be paid on 1 February 2013.

The Company currently expects that it will be in a position to declare a final dividend for the year ending 31 December 2012 of a similar amount. This will be announced at the time of the Company's annual results for 2012, which are scheduled to be released by the end of March 2013.

Special Dividend

The Company has also decided to pay a special dividend to its shareholders of $5.0 million to recognise the significant savings the Company has achieved in the construction and commissioning of the plant at Kounrad and the better than anticipated production levels achieved.

This equates to 3.70 pence per ordinary share based on an exchange rate of £1 = $1.60. The ordinary shares will go ex-dividend on 16 January 2013 and the special dividend will be payable to all shareholders registered at the record date of 18 January 2013 and will be paid on 1 February 2013.

The total dividends to be paid of $9.5million, 7 pence per ordinary share, enables CAML to return cash to its shareholders, whilst also enabling it to invest in the future growth of the business. The dividends have also been agreed after due consideration of the current and expected profitability of the business, the inherent volatility associated with the commodity markets and the funding requirements for a potential second 10,000 tonne per annum SX-EW plant at Kounrad.

Kounrad Production Update

The initial Kounrad production target for 2012 was 5,000 tonnes of copper and this was increased to 5,750 tonnes in late September 2012 at the time of the Company's interim announcement. As at 12 December 2012, production reached 6,250 tonnes of which 5,863 tonnes has been delivered to customers through the Company's off-take arrangements with Traxys.

A full year production update will be announced in January 2013.


Nick Clarke, Chief Executive Officer commented:

"The announcement of dividend payments totalling $9.5 million representing 7 pence per ordinary share reflects the transformation that has taken place in the Company's financial position over the past two years. This is a result of our commitment across the CAML Group to capital and operational cost discipline and a successful first eight months of copper production at Kounrad.

The implementation of an annual dividend policy also reflects the importance the Company places on delivering meaningful cash returns to our shareholders and sustainable value creation."

[morph7] 05/12/2012 17:54

More large transactions reported at close of play today.
Commonwealth American Partners sold nearly 2m shares on the 3rd. Not sure how often CAML website is updated but according to that CAP is one of the biggest holders of stock. Montoya also bought back nearly 1m.

C'mon CAML lets have some good news for the festive season. . . .

[darcon] 04/12/2012 03:59

The RNS doesn't say MUB has withdrawn entirely from the process. Only that they haven't been able to raise funds in the time allotted for exclusivity. These are difficult markets and until there is clarity on fiscal cliff and its impact on Chinese growth (latest data seems more positive on the latter)there is likely to be a shortage of risk capital.

CAML is nevertheless negotiating well in withdrawing exclusivity. No point in giving it away for free when other buyers may be in the wings (we hope).

[arphillips] 03/12/2012 11:23

Yes, it's a shame not to conclude the sale of Ereen and Hangait, however, it's only a minor disappointment as the sale will eventually take place enabling them to focus on their core asset. The latest Edison report did not place a valuation on these assets so any receipt will merely be a bonus anyway.

What's important here at the moment is that the price of copper has recently strengthened to $3.60 lbs. Edisons forecasts a PE of 7 for next year using a copper price of $3.00 lbs so the current copper price is 20% above their forecast. Very significant I feel. So on our share of production (6,000 tonnes) profit before tax should be increased by £5m approximately by my calculations.

On this basis the forecasted profit for 2013 would be about £20m before tax and £16m after tax. So next years PE falls to around 5. This is of course before the possible acquisition of remaining 40% interest and then the expected expansion.

[morph7] 03/12/2012 09:10

It's unfortunate that the two respective assets were not disposed of, but in the greater scheme of things-I wont loose any sleep on the matter at this moment in time.
Another buyer will be found soon enough. The only reason management are offloading them is so to allow for more focus on Kounrad. They are the RNS feeds I'm most interested in.
Can anyone confirm the valuation of Ereen and Handgait? It has slipped my mind.

[nhb] 03/12/2012 08:37

Anyone understand the significance of the latest RNS?

Termination of exclusivity period with Mongolian Resource Corporation

Further to the announcement on 11 September 2012, Central Asia Metals plc (AIM:CAML) announces that it has now ended the exclusivity period with Mongolian Resource Corporation ("MUB") for the sale of two of the Company's Mongolian projects, Ereen and Handgait.

Discussions remain ongoing between CAML and MUB over the sale but MUB has been unable to raise the funding required at this stage.

CAML will continue the sale process with other interested third parties and has maintained the services of Cutfield Freeman & Co. to advise.

[arphillips] 28/11/2012 19:54

Good finish to the day with last trade of 51,500 at 97p.

[morph7] 26/11/2012 18:28

Hi AR,

I was just reading about Blackrock as I received the RNS earlier. Yes, its a shame to see them offload like that. But you never know their precise reasons-profit taking or just a requirement for immediate funds for another project. I guess we'll see soon enough.
Their loss!