1st Apr 2020 10:35
(Alliance News) - Central Asia Metals PLC decided against a final dividend on Wednesday as it looks to preserve cash as the Covid-19 crisis continues.
CAML had declared a 6.5 pence per share dividend for the interim period. In 2018, the total payout was 14.5p.
"While we have a robust balance sheet and low-cost operations, the situation regarding Covid-19 and its potential impact on the global economy and our operations remains uncertain and is rapidly changing, so we believe that, currently, preserving cash is the most prudent approach," said CAML.
CAML's revenue in 2019 was 12% lower at USD171.7 million, with pretax profit slipping 6.7% to USD67.8 million.
The company reported production from the Kounrad and Sasa mines, in Kazakhstan and North Macedonia respectively, in January.
Copper production from Kounrad fell 2.0% in 2019 but beat guidance, while zinc production at Sasa rose 3.7% and lead fell 0.6%, both meeting guidance.
"Our 2019 financial results demonstrate the fundamental strength of the CAML business, which has two low-cost base metals operations that are highly profitable and cash generative. We ended the 2019 financial year in a strong position with USD32.6 million cash in the bank and gross debt reduced to USD108.8 million, almost half the level it was only two years ago when we acquired Sasa," said Chief Executive Nigel Robinson.
"Despite that, we are conscious that we announce these results in very uncertain times, when the short-term outlook for our health, the commodity markets and the global economy is in much doubt due to the Covid-19 pandemic.
Both of CAML's mines remain operational. Kazakhstan has locked down the cities of Nur-Sultan and Almaty, while there are overnight curfews in North Macedonia.
"While both North Macedonia and Kazakhstan currently have relatively few cases of Covid-19, the numbers are rising daily, and we are seeing the subsequent escalation of government measures, therefore, cannot rule out the potential for increased restrictions as seen elsewhere," said CEO Robinson.
Shares were 17% lower on Wednesday morning in London at 130.00 pence each.
By George Collard; [email protected]
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