Central Asia Metals (CAML) drove up its operating profits by a third to $37.5m (£25.4m) last year as copper production at the group's Kounrad project in Kazakhstan outstripped expectations. Cash generation was correspondingly strong at $47.2m, up from $41.1m in 2013. With fully funded capital commitments, the group felt able to announce another hefty dividend return to shareholders.
Central Asia gained full control of Kounrad in May by securing the outstanding 40 per cent stake in the project from Kazakh businessman Kenges Rakishev. Production for the year came in at 11,136 tonnes of cathode copper, up 6 per cent from 2013. Phase one of the expansion plan at Kounrad is due for completion midway through this year, by which time the complex should be capable of producing 15,000 tonnes per year.
The step-up in production helped offset a fall-away in the copper price since the 2012 high-water mark. Prices averaged $6,794 a tonne last year, compared with $7,114 a tonne in 2013. But Central Asia's cash costs, at $1,566 per tonne, were 3 per cent lower than the previous year and remain in the lowest quartile of the industry cost curve.
Peel Hunt is re-jigging its forecasts in light of the 2014 numbers, but gives a target price range of 208p-250p based on the company's historic dividend yield of 5-6 per cent.
| CENTRAL ASIA METALS (CAML) | ||||
|---|---|---|---|---|
| ORD PRICE: | 162p | MARKET VALUE: | £181m | |
| TOUCH: | 160-162p | 12-MONTH HIGH: | 186p | LOW: 139p |
| DIVIDEND YIELD: | 7.7% | PE RATIO: | 4 | |
| NET ASSET VALUE: | 168¢* | NET CASH: | $46m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 1.5 | -6.7 | -11.0 | nil |
| 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 |
| % change | +42 | +27 | +3 | +39 |
Ex-div: 28 May Payment: 24 Jun £1 = $1.49. *Includes intangible assets of $81.6m, or 73¢ a share. | ||||
