11th Apr 2016 10:33
LONDON (Alliance News) - Central Asia Metals Ltd on Monday maintained its dividend for 2015 despite reporting a halving of pretax profit in a challenging year for the copper market.
Central Asia Metals proposed a 8.0 pence per share final dividend, taking its total dividend for the year to 12.5p, in line with 2014.
The company reported a pretax profit of USD32.7 million for 2015, down from USD70.3 million a year before, as a fall in revenue to USD67.3 million from USD76.6 million was compounded by higher administrative expenses and a USD600,000 inventory write-off. Additionally, in 2014 the company recognised an exceptional USD33.0 million gain after it took full control of the Kounrad project in Kazakhstan.
Central Asia Metals was hurt by the fall in the price of copper throughout the year, but said it had continued to operate profitably at Kounrad due to sustained low costs of copper production.
During the year the company completed the first stage of an expansion at Kounrad, and will focus on the second stage of this expansion in 2016. It has begun producing materials and equipment for this further expansion, and said the programme's capital cost remains within its USD19.5 million estimate.
Central Asia Metals reported copper cathode production from Kounrad of 12,071 tonnes for 2015, up 8.4% from 11,136 tonnes in 2014.
For 2016 the company is targeting production of 13,000 to 14,000 tonnes.
"We are pleased to report that, during a very challenging 2015 for the copper market, Central Asia Metals has again reported robust financial results. Indeed, while many resource companies are cutting dividends, we are pleased to be able to honour and exceed our dividend policy," said Chief Executive Officer Nick Clarke in a statement.
Chairman Nigel Hurst-Brown also announced plans to step down, although he will remain with the company as non-executive deputy chairman.
CEO Clarke will become executive chairman. Technical Director Howard Nicholson will step down from the board for personal reasons, but will remain with the company, whilst Central Asia Metals will appoint its Business Development Director Gavin Ferrar to the board. All of these changes will take effect at the conclusion of the company's annual general meeting June 8.
Shares in Central Asia Metals were up 1.0% at 169.59 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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