STOCKOPEDIA - New Year NAPS - Top Stocks for 202325 Mar 2023 12:17
Central Asia Metals (LON:CAML)
Copper, zinc and lead producer, Central Asia Metals, has continued its strong operational progress by delivering record profits in the first half of 2022. Free cash flow from its mining operations in Kazakhstan and North Macedonia reached $52.1m for the period, allowing the company to repay the entirety of its corporate debt facility, whilst simultaneously raising the interim dividend to 10p per share.
Central Asia Metals’ focus on operational excellence and maintaining costs in the lowest quartile of the industry, has allowed it to effectively grow revenues and profits at a compound annual growth rate of 27.3% and 28% respectively, over the last six years. The company’s quality characteristics are exemplary, with a ROCE of 29.8% and ROE of 26.8%, ranking it among the top decile of its industry.
However, in the mining industry, the good times don’t last forever. Even if base metal prices remain elevated for the foreseeable future, Central Asia Metals revenues from its assets are expected to fall in future years, as mining resources are depleted. Management are now considering acquisitions to reignite future growth, but this will also inevitably carry its own risks.
Has the highest ranking of 100 (max possible) of ANY mining share
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