10th Apr 2019 10:42
LONDON (Alliance News) - Central Asia Metals PLC on Wednesday reported a "successful" 2018 at both of its mines, while it has also had a good start to 2019.
Central Asia Metals, or CAML, owns the Sasa and Kounrad mines, in Macedonia and Kazakhstan respectively, mining copper, lead, and zinc.
CAML reported 2018 production in January, with copper falling 0.4% to 14,049 tonnes, zinc rising 4.3% to 22,532 tonnes, and lead slipping 1.6% to 29,388 tonnes.
Revenue for 2018 nearly doubled to USD204.2 million, from USD106.5 million, with pretax profit surged to USD72.7 million from USD49.8 million.
CAML is paying a final dividend of 8 pence a share, taking the total to 2018 to 14.5p, down from 16.5p. The company said this dividend is in line with its new policy of returning between 30% and 50% of free cash flow to shareholders.
Net debt at the end of 2018 was USD110.3 million, down from USD138.9 million a year prior.
"With low cost production from both operations, we are confident we can continue to offer attractive returns to shareholders in 2019 and beyond," said Chief Executive Nigel Robinson.
"We move into 2019 as a highly cash generative resources company with two low cost operations producing three base metals with attractive market fundamentals," Robinson continued.
"We believe this forms the basis of an excellent platform from which to once again grow by acquisition, and we are encouraged by the quality of some of the opportunities we are reviewing."
CAML has reiterated 2019 production guidance of between 12,500 tonnes and 13,500 tonnes of copper from Kounrad, and between 22,000 tonnes and 24,000 tonnes of zinc and 28,000 tonnes to 30,000 tonnes of lead at Sasa.
The firm also reported first quarter figures Wednesday. Copper output was down 3.8% to 2,952 tonnes, zinc rose 2.2% to 5,639 tonnes, and lead climbed 2.7% to 7,212 tonnes.
"These production results reflect a good start to the year at Kounrad and Sasa, both of which are on track to achieve 2019 production targets," said Robinson.
Shares were 2.8% lower on Wednesday morning at 259p each.
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