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(Alliance News) - Central Asia Metals PLC on Tuesday reported a decline in interim profit following a drop in commodity prices in the first half of 2019.
In the six months to June 30, the copper, zinc and lead production and exploration company, with operations in Kazakhstan and North Macedonia, reported a 7.6% slip in pretax profit to USD35.5 million from USD38.4 million the year before.
Central Asia Metals' revenue in the first half fell 12% to USD84.7 million from USD96.6 million the year before.
The miner said the first half was "very positive", with zinc and lead production from Sasa in North Macedonia and copper production in Kounrad in Kazakhstan on track to meet full year guidance.
Zinc and lead production at Sasa were 11,517 tonnes and 14,357 tonnes, which is 4.5% higher and 0.2% lower, respectively, on the year before.
Payable zinc sales for the period were 9,708 tonnes, 4.9% higher year on year, and for lead were 13,731 tonnes, 0.2% lower on the year before.
Revenue from Sasa was 19% lower than the year before due to "significantly lower" commodity prices during the recent period, with the zinc price received being on average 18% lower than the previous corresponding period and the lead price 22% lower.
Kounrad produced 6,594 tonnes of copper cathode during the period, down 2.3% year on year, and sold 6,461 tonnes, a 6.9% rise.
The average copper price received was 7% lower year on year.
Looking forward, the miner said it is on course to achieve 2019 production of 12,500 to 13,500 tonnes copper; 22,000 to 24,000 tonnes of zinc and 28,000 to 30,000 tonnes of lead.
"We have today released a strong set of financial results, reflecting our reliable metal output and demonstrating that we have maintained our low costs of production. We were pleased to have sustained the Ebitda margin of 63% and to have generated an increased free cash flow of 10% period on period," said Chief Executive Nigel Robinson.
Robinson continued: "While our business development activities have continued during the first half, we aim to strike the right balance for our shareholders in terms of capital allocation. Therefore, deleveraging and continuing to pay the sector leading dividends, for which we have become known, is a priority."
Central Asia Metals declared an interim dividend of 6.5 pence per share, flat on the year before and in line with the miner's dividend policy.
Shares in Central Asia Metals were 2.7% higher in London on Tuesday at 193.20 pence each.
