When the IC recently met with Central Asia Metals (CAML) chief executive Nick Clarke, we were left with little doubt around the group's commitment to pay out at least 20 per cent of revenue as dividends. However, today's 8p final dividend - on top of a 4.5p payout at the half year - equates to a massive 26 per cent* of 2015 revenue, and surprised analysts who were guiding for a decline.
Mr Clarke, who has now taken over chairman duties from Nigel Hurst-Brown, drew attention to the trend-bucking move in the copper miner's full-year results. "While many resource companies are cutting dividends, we are pleased to be able to honour and exceed our dividend policy," he said. Of course, the longer-term question is whether Central Asia can find other uses for its cash. The historical and geological circumstances which led to the Kounrad deposit are unlikely to be matched, which explains why none of the 100-plus assets management has looked at in the last two years has been acquired.
Broker Peel Hunt is forecasting adjusted pre-tax profit of $23.3m and earnings per share of 14.1¢, up from $18.8m and 9.6¢ in the 12 months to December 2015.
*An earlier version of this article referred to this proportion as 30 per cent. This has been updated.
CENTRAL ASIA METALS (CAML) | ||||
|---|---|---|---|---|
| ORD PRICE: | 170p | MARKET VALUE: | £190m | |
| TOUCH: | 166-170p | 12-MONTH HIGH: | 198p | LOW: 121p |
| DIVIDEND YIELD: | 7.4% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 102¢ | NET CASH: | $41.5m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 1.1 | -5.9 | -13.0 | nil |
| 2012 | 30.7 | 14.8 | 11.0 | 10.7 |
| 2013 | 54.1 | 55.4 | 54.9 | 9.0 |
| 2014 | 76.6 | 70.3 | 56.3 | 12.5 |
| 2015 | 67.3 | 32.7 | 20.2 | 12.5 |
| % change | -12 | -53 | -64 | - |
Ex-div: 19 May Payment: 15 Jun £1=$1.41 | ||||
