Central Asia Metals (CAML) has held its half-year dividend flat at 6.5p, offering some reassurance after a cut to the full-year payout back in April. The proposed sum represents 40 per cent of the group’s first-half free cash flow, which edged up from $32.4m (£25.9m) to $35.5m. Meanwhile, the balance sheet showed signs of improvement, with debt repayments of $19m taking net borrowings down from $110m to $100m.
Management said that the period had, operationally, been “very positive”. Zinc and lead production from the Sasa zinc-lead mine in north Macedonia and copper production from Kounrad in Kazakhstan are on schedule to meet the group’s full-year guidance.
True, gross revenues from zinc and lead fell by almost a fifth year on year to $49.9m due to weaker commodity prices. Bu while Sasa’s cost of production rose from $0.44 to $0.47 per pound of zinc – largely due to treatment charges – this was still low against industry standards. Kounrad’s costs are also relatively meagre. Therefore, notwithstanding a 12 per cent contraction in group gross revenues and cash profits, the corresponding margin was maintained at 63 per cent.
House broker Peel Hunt expects adjusted pre-tax profits of $57.3m and EPS of 24¢ for 2019, down from $72.7m and 30.6¢ in 2018.
| CENTRAL ASIA METALS (CAML) | ||||
| ORD PRICE: | 192p | MARKET VALUE: | £337m | |
| TOUCH: | 190-192p | 12-MONTH HIGH: | 274p | LOW: 176p |
| DIVIDEND YIELD: | 7.6% | PE RATIO: | 8 | |
| NET ASSET VALUE: | 189¢ | NET DEBT*: | 30% | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
| 2018 | 96.6 | 38.4 | 16.4 | 6.5 |
| 2019 | 84.7 | 35.5 | 15.4 | 6.5 |
| % change | -12 | -8 | -6 | - |
| Ex-div: | 3 Oct | |||
| Payment: | 25 Oct | |||
*Does not include lease liability of $0.6m £1=$1.24 | ||||
