Central Asia Metals plc announced improved results driven by high commodity prices for the first six months the year from its operations in Macedonia and Kazakhstan.
FINANCES
Central Asia Metals owns 100% of the Kounrad SX-EW copper project in central Kazakhstan and the Sasa zinc-lead mine in North Macedonia.
In its unaudited interim results ended 30 June 2021, the company recorded group gross revenue of $106.3 million (H1 2020: $75.4m) and net revenue of $100.8m (H1 2020: $70.8m).
Group EBITDA was $64.4m (H1 2020: $42.5m) with EBITDA margin of 61% (H1 2020: 56%).
Group FCF stood at $48.9m (H1 2020: $21.2m) and cash in the bank of $54.3m (31 December 2020: $47.9m).
Group net debt for H1 2021 was $10.1m (31 December 2020: $36.2 million) with debt repayments of $19.9m (H1 2020: $19.2m).
The company increased dividend and additional debt repayments during H1 2021 with a dividend of eight pence per share (H1 2020: six pence), representing 40% of group free cash flow.
OPERATIONS
For the six moths ended 30 June 2021, Kounrad produced 6,214 tonnes copper (H1 2020: 6,607t), with copper sales of 6,241t (H1 2020: 6,600t).
Sasa produced zinc in concentrate of 11,292t (H1 2020: 12,203t) with payable zinc sales of 9,419t (H1 2020: 10,273t).
Sasa lead in concentrate production was 13,807t (H1 2020:15,140t).
Payable lead sales were 13,160t (H1 2020: 14,445t).
The company said that the river remediation project was completed at Sasa and made progress with its environmental, social and governance(ESGs) activities.
The group reported three group lost time injuries and a group lost time injury frequency rate of 2.5.
OUTLOOK
Chief executive Nigel Robinson said that the increased dividend and $10m in accelerated debt repayments had taken the company closer to the debt free milestone.
“We have advanced our cut and fill project since the start of the year, which is on track and on budget for commissioning in the last quarter of next year.
“During the period, development of the new central decline has commenced, all major components for the paste backfill plant were ordered and plans for the dry stack tailings part of the project are also advancing.”
“The outlook for the remainder of 2021 is positive for CAML, with strong demand for the metals that we produce, and we are on track to meet our output guidance from Sasa and Kounrad.”