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Highlights

  • CAML’s FY23 saw an 11.6% revenue decline and 26.7% drop in EBITDA.
  • The company’s H2 FY23 EBITDA margin was 46.8%, surpassing industry averages.
  • The company aims to produce 13,000-14,000 tonnes of copper, 19,000-21,000 tonnes of zinc, 27,000-29,000 tonnes of lead in FY24.

Central Asia Metals PLC (LSE: CAML) is a United Kingdom-based copper producer. It is a constituent of the FTSE AIM UK 50 Index. It has a market cap of GBP 358.35mn.

In FY23, the group's revenue experienced a notable decline of approximately 11.6%, driven mainly by reduced average realized prices for metals during the period. This decrease in revenue was mirrored by a 26.7% drop in EBITDA, reflecting the combined impact of lower earnings and rising inflationary pressures. These economic factors contributed to a challenging financial environment, ultimately compressing profit margins and highlighting the need for strategic adjustments.

On the positive side, the company had a higher EBITDA margin of 46.8% and a higher current ratio of 4.44x in H2 FY23, compared to the industry average of 20% and 1.80x, respectively.

Additionally, in the second quarter of FY24, CAML produced 3,488 tonnes of copper, 4,272 tonnes of zinc, and 6,343 tonnes of lead, compared to a production of 3,120 tonnes of copper, 4,741 tonnes of zinc, and 6,529 tonnes of lead in the first quarter of FY24. For the first half of FY24, total production amounted to 6,608 tonnes of copper, 9,014 tonnes of zinc, and 12,872 tonnes of lead. This represents a slight decrease from the first half of FY23, when production was 6,716 tonnes of copper, 9,764 tonnes of zinc, and 13,734 tonnes of lead.

Recent Business Update

The company will release its Interim Results for H1 FY24 on Tuesday 10 September 2024.

Company Outlook

Management remains optimistic about meeting the production targets for FY24, with copper production anticipated to fall between 13,000 tonnes and 14,000 tonnes. For zinc in concentrate form, estimates range from 19,000 tonnes to 21,000 tonnes, while lead in concentrate is expected to be between 27,000 tonnes and 29,000 tonnes.

Top 10 Shareholders

The top 10 shareholders of CAML together account for approximately 51.06% of the total shares. Fidelity International holds the largest share at around 9.65%, followed by BlackRock Investment Management (UK) Ltd with about 7.73%, as illustrated in the chart below.

Stock Information

Over the past three months, CAML's stock price has decreased by approximately 12.71%. It has reached a 52-week high of GBX 235.00 and a 52-week low of GBX 150.20, and is presently trading near the midpoint of this 52-week high-low range.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 27 August 2024. The reference data in this report has been partly sourced from EODHD/Others.