Central Asia Metals: a Mine Developer with Laser-Focus on cash generation
Tuesday 23 August 2011
(Proactive Investors) – Central Asia Metals (LON:CAML) emerged from the economic turmoil, lessons learned, with a laser-focus on one goal – being a cash generating copper producer. And by the end of the year it should be bearing down on this particular milestone as its 10,000-tonne a year plant in Kounrad, Kazakhstan, is commissioned.
This has been a super-fast development. CAML came to market less than a year ago raising US $60 million to build a solvent-extraction electrowinning facility (SX-EW).
Yet chief executive Nick Clarke is quietly confident the operation will be on time and on budget when the switches are flicked in December. “We took the view that we wanted to be close to a build-ready project with early stage cash flow,” he told Proactive Investors. “It sounds boringly simple. But that’s what the market and institutional shareholders want to see: delivery.”
In total $46.9 million has been set aside for the work, though around $35 million of that still sitting in the bank at the start of last month. However the burn rate will increase rapidly as the plant grows from the bleak and featureless southern steppes and the equipment is installed.