Half-year figures from Central Asia Metals (CAML) are just a teaser as to how profitable its Kounrad copper project in Kazakhstan could be. They include only two months of production since Kounrad's processing plant was commissioned in April - but cash is already flowing and is quickly picking up pace.
The operation is working at or above designed production capacity, churning out 1,728 tonnes of copper cathodes in its first two months and a total of 4,318 tonnes to date - meaning Central Asia is on track to beat its 5,000-tonne target for the year. Management has conservatively placed a new 5,750-tonne target for 2012, building in plenty of slack to their revised guidance to allow for lower winter production rates.
Production costs were kept low at 48¢ (29.6p) a pound and, including cost of sales and duties, total costs came in at 85¢ a pound. General and administrative costs were higher than expected at $3.9m, but this mainly reflected a one-off staff completion bonus.
Broker Canaccord Genuity forecasts full-year adjusted EPS of 11¢ (2011: 1¢ loss per share).
CENTRAL ASIA METALS (CAML) | ||||
---|---|---|---|---|
ORD PRICE: | 99.5p | MARKET VALUE: | £85.1m | |
TOUCH: | 98-100p | 12-MONTH HIGH: | 107p | LOW: 54p |
DIVIDEND YIELD: | nil | PE RATIO: | na | |
NET ASSET VALUE: | 77¢ | NET CASH: | $10.3m |
Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
---|---|---|---|---|
2011 | 1.13 | -1.75 | -2.00 | nil |
2012 | 6.78 | 0.53 | 1.00 | nil |
% change | +500 | - | - | - |
£1=$1.62 |