Central Asia Metals plc reported an increased dividend from a strong financial performance driven by high commodity prices for its Kounrad copper operations in Kazakhstan and Sasa lead-zinc mine in North Macedonia.
DIVIDEND
In the company’s unaudited interim results for the six months ended 30 June 2022 chief executive Nigel Robinson announced an increase in dividend of 10 pence per share (H1 2021: 8 pence) but cautioned investors about inflation.
“We are not immune from global inflationary pressures, in particular energy prices, which are largely outside our control.”
FINANCES
Group gross revenue rose to $119.5 million (H1 2021: $106.3m) with net revenue at $113.8m (H1 2021: $100.8m).
The company recorded EBITDA to $74.9m (H1 2021: $64.4m).
Central Asia Metals held $57.7m cash in the bank (31 December 2021: $59.2m) and the group’s net cash as at 30 June 2022 was $38.9m (31 December 2021: $22.7m).
The company made corporate debt repayments of $16.0m (H1 2021: $19.2m) and, following post-period end, had completely repaid its corporate debt facility.
ESGs
Central Asia Metals noted one lost time injury (LTI) and recorded the group’s lost time injury frequency rate (LTIFR) of 0.85.
The group published its 2021 Sustainability Report and Climate Change report during Q2 2022 and plans to start building the Kounrad solar power plant during Q4 2022.
The company added that it had agreed “significant pay rises” for its Sasa and Kounrad employees.
OPERATIONS
Central Asia Metals reported increased Kounrad copper production of 6,617 tonnes (H1 2021: 6,214t) and sales of 6,406t (H1 2021: 6,241t).
2022 Kounrad copper production guidance increased from 12,500-13,500t to 13,500-14,000t.
At the Sasa mine, zinc in concentrate production fell to 10,465t (H1 2021: 11,292t) and payable zinc sales decreased to 8,761ts (H1 2021: 9,419t).
Lead in concentrate production remained even at 13,827t (H1 2021: 13,807 tonnes) with payable lead sales were 13,608t (H1 2021: 13,160t)
The company said it was on course to meet Sasa 2022 production guidance of zinc in concentrate of 20,000-22,000t and lead in concentrate of 27,000-29,000t.
CONTROLLED COSTS
“These results reflect increased metal prices to some extent counteracted by inflationary pressures but notwithstanding this, our costs during H1 2022 were well controlled with increases mitigated by weaker operating currencies and a fixed price electricity contract at Sasa,” added Mr Robinson.