The Company is also pleased to declare an interim dividend of 4.5 pence per ordinary share (H1 2014: 5 pence) which equates to 25% of the gross revenue for the period. CAML raised $60 million at its IPO in September 2010 and this latest dividend will bring the total cash returned to shareholders, in dividends and share buy backs, to approximately $61 million, representing over 100% of the funds raised.
• H1 2015 copper production of 5,444 tonnes, an increase of 7% vs. H1 2014 (5,094 tonnes)
• H1 2015 copper sales of 5,120 tonnes, an increase of 9% vs. H1 2014 (4,698 tonnes)
• Kounrad Solvent Extraction-Electro Winning (SX-EW) plant expansion commissioned on time and under budget
• Completion of all detailed construction designs for Stage 2 Expansion to access the Western dumps
Financial highlights
• EBITDA of $16.0 million (H1 2014: $21.8 million) with EBITDA margin of 53%
• 2015 interim dividend of 4.5 pence per ordinary share to be paid on 30 October 2015
• H1 2015 Group gross revenue of $30.3 million (H1 2014: $33.7 million)
• Average copper price received of $5,936 per tonne (H1 2014: $7,049 per tonne)
• Continued focus on maintaining low costs of production:
- C1 cash costs of production of $0.74 per lb (H1 2014: $0.72 per lb)
- Fully absorbed unit costs of $1.87 per lb (H1 2014: $1.62 per lb) including non-cash costs for depreciation and amortisation of $0.54 per lb (H1 2014: $0.48 per lb)
• Group cash balance of $35.8 million as at 30 June 2015 (31 December 2014: $46.3 million)
Business Development
• Additional $3.0 million investment in Copper Bay Limited ("Copper Bay") in June 2015 increasing shareholding to 75%
• Copper Bay Definitive Feasibility Study ("DFS") commenced
• Management continues to look for additional growth opportunities
Outlook
• 2015 production guidance of 12,000 tonnes of copper
• Construction permits and licences for Stage 2 Expansion expected by the end of 2015
• Stage 2 Expansion to access the Western dumps on track for production in 2017
• Continued focus on operational and capital cost discipline in current challenging commodity price environment
• Impact of recent devaluation of Kazakhstan Tenge ("KZT") on operational cost base under review
Nick Clarke, Chief Executive Officer, commented:
"I am pleased to report that our business has remained profitable in the first half of 2015, despite a 16% decrease in the copper price since the beginning of the year. We delivered a solid operational performance, and despite a temporary production disruption in late June, we have increased our production by 7% from the corresponding period. In addition, we delivered the Stage 1 Expansion of the plant on time and under budget and we are working towards the Stage 2 Expansion.
Our continued focus on cost control has maintained Kounrad's position in the lowest quartile of the industry cash cost curve. 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.
CAML's increased investment in Copper Bay demonstrated our confidence in the project and we look forward to providing further updates as the DFS progresses. Furthermore, we continue to look for additional opportunities to grow the business and deliver value to our shareholders.
Finally, with the dividend announced today, total cash returned to shareholders now exceeds the funds raised at IPO five years ago, an achievement of which we are extremely proud."
