Central Asia Metals (CAML) H2 2023 earnings summary

Executive summary

• 2023 revenue was $207.4m and EBITDA $96.5m; profit after tax rose 10% YoY to $37.4m despite lower commodity prices, inflation and higher taxes.

• Cash generation remained strong at $57.5m FCF; year-end net cash was $56.5m, with gross debt of $0.3m.

• Capital investment increased to $27.8m, supporting Sasa’s transition to paste-fill mining and Kounrad’s completed solar project.

Financial highlights

• Gross revenue fell 11% YoY to $207.4m; EBITDA declined 27% to $96.5m and EBITDA margin fell to 47% from 57%.

• Profit after tax was $37.4m, up 10% YoY; continuing-operations EPS rose 8% to 20.54 cents.

• Cost of sales increased 6% to $92.9m; admin expenses rose 15% to $31.2m and taxation increased 34% to $27.7m.

• FCF was $57.5m; closing cash was $57.2m in the cash-flow bridge and $56.8m on the balance sheet.

• 2023 full dividend was 18p per share ($40m); total dividends since 2012 reached $339m, or 170p per share.

Outlook and guidance

• 2024 production guidance: copper 13,000–14,000t; zinc in concentrate 19,000–21,000t; lead in concentrate 27,000–29,000t.

• Sasa 2024 guidance is 790,000–810,000t ore mined, 19,000–21,000t zinc and 27,000–29,000t lead in concentrate.

• 2024 capex is forecast at $22–24m; Sasa’s DST Plant and second Central Decline phase are due for completion, with capital-project development concluding.

• Planned exploration includes 6,600m of drilling at Sasa and increased CAML X work in Kazakhstan; up to $3.5m is budgeted for CAML X in 2024.