The Central Asia Metals Company's dividend policy is to return to shareholders a target range of between 30% and 50% of free cash flow, defined as net cash generated from operating activities less sustaining capital expenditure. The dividends will only be paid provided there is sufficient cash remaining in the Group to meet the ongoing contractual debt repayments and that banking covenants are not breached.
In light of COVID-19, the CAML Board took the decision not to recommend a final 2019 dividend. Total dividends paid to shareholders during the year of $13.9 million (2019: $32.2 million) therefore relate to the interim dividend for the year ended 31 December 2020 of 6.0 pence per Ordinary Share, which was delayed to December 2020 due to the leakage from Sasa's TSF4.
In conjunction with CAML's 2020 annual results, the Board proposes a final 2020 dividend of eight pence per Ordinary Share, which represents 57% of free cash flow and is therefore above their stated policy. This demonstrates a strong end to 2020 for them and a positive start to 2021, particularly in terms of commodity prices. This brings total dividends (proposed and declared) for the year to 14 pence (2019: 6.5 pence) payable on 25 May 2021 to shareholders registered on 30 April 2021. This latest dividend will increase the amount returned to shareholders in dividends and share buy-backs since the 2010 IPO listing to $209.6 million.
Other financial highlights include:
o Group net revenue of $160.1 million (2019: $171.7 million)
Group EBITDA of $95.7 million (2019: $108.6 million)
EBITDA margin of 56% (2019: 60%)
Group profit before tax of $59.8 million (2019: $67.8 million)
Sasa C1 zinc equivalent cash cost of $0.50 per pound (2019: $0.47 per pound)
Kounrad C1 copper cash cost of $0.51 per pound (2019: $0.52 per pound)
EPS from continuing operations of 24.78 cents (2019: 29.36 cents)
Group FCF of $58.9 million (2019: $69.8 million)
Group net debt1 as at 31 December 2020 of $36.2 million (2019: $80.2 million)
o Cash in the bank as at 31 December 2020 of $47.9 million2 (2019: $32.6 million)
o 2020 gross debt repayments of $38.4 million (2019: $38.4 million)