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The Markets
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The Markets
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General mining & base metals

Central Asia Metals passes major dividend milestone

Central Asia Metals delivers another production boost, and continues rewarding shareholders in cash

Central Asia Metals (LON:CAML) produced 5,444 tonnes of copper from its Kounrad recycling facility in Kazakhstan during the first half of 2015.

The production, which was up by 7% on the comparable period in 2014, will allow the company to pay a 4.5p dividend.

And that dividend takes it past a considerable milestone. Back when it listed in 2010, Central Asia raised US$60mln from shareholders.

With the payment of this latest dividend it will have returned just over US$61mln, if share buybacks are included.

And it’s in that context that CAML’s share price graph should be viewed.

In recent months the shares have come off slightly, as the copper price has withered under Chinese attack.

But over a four year period the shares have more than doubled.

That’s some going in a mining bear market in which the price of the underlying commodity has significantly weakened.

But this is a company that has consistently met expectations and has ended up quietly outperforming the market.

The plan now, naturally enough, is for expansion.

Already the solvent extraction-electro-winning plant at Kounrad has been commissioned and delivered under budget.

Now a much more significant expansion of throughput is in the offing, supported by an existing cash pile of over US$35 mln.

“Our business has remained profitable despite a 16% decrease in the copper price since the beginning of the year,” said chief executive Nick Clarke.

“The continued low cost of our operations together with our strong balance sheet enables us to continue market leading dividend payments in a challenging commodity environment.”

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