Central Asia Metals reports record interim financial performance in H1 2022, increases dividend

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(Kitco News) – Central Asia Metals (AIM: CAML) announced today that in H1 2022, its copper production from Kounrad was 6,617 tonnes (H1 2021: 6,214 tonnes) and sales were 6,406 tonnes (H1 2021: 6,241 tonnes). 

The company said it increases 2022 Kounrad copper production guidance from 12,500-13,500 tonnes to 13,500-14,000 tonnes.

CAML added that Sasa zinc in concentrate production was 10,465 tonnes (H1 2021: 11,292 tonnes) and payable zinc sales were 8,761 tonnes (H1 2021: 9,419 tonnes), while lead in concentrate production was 13,827 tonnes (H1 2021: 13,807 tonnes) and payable lead sales were 13,608 tonnes (H1 2021: 13,160 tonnes).

Importantly, the company said it has delivered a record interim financial performance in H1 2022, with Group EBITDA of $74.9 million representing an increase of over 16% from the previous corresponding period.

CAML also reported earnings per share (EPS) of 30.25 cents, which is an increase of 49% from the previous corresponding period (H1 2021 adjusted: 20.28 cents).

The company noted that its earnings translated into increased free cash flow of $52.1 million, which was 7% higher than that generated in the first six months of 2021 (H1 2021: $48.9 million).

CAML pointed out that given this strong H1 2022 performance, its Board has declared an increased interim dividend of 10 pence per ordinary share (H1 2021: 8 pence), which is in line with the company’s stated policy.

Looking ahead to H2 2022 and beyond, CAML said it is in a strong position despite some recent volatility in commodity prices and continued global inflationary pressures, not least the expectation of considerably higher electricity charges at Sasa during H2 2022, which are outside the company’s control.

“CAML is now debt free, and this strong balance sheet coupled with its low-cost operations means that the company remains well-placed to pursue potential acquisition opportunities whilst investing in the business, delivering returns to shareholders, and adding value for its other stakeholders,” the company noted in its statement.

Central Asia Metals, an AIM-listed UK company based in London, owns 100% of the Kounrad dump leach SX-EW copper project in central Kazakhstan and 100% of the Sasa zinc-lead mine in North Macedonia.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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