Updates & Ideas

Central Asia Metals - Low cost copper producer on PE of 6.8

March 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

While investors have indiscriminately sold off small caps in a climate of fear, one that looks clearly mispriced is Central Asia Metals (CAML), one of the world’s lowest cost copper producers. Its year end 2021 update on 11 January confirmed everything is on track and I expect results at the end of March to show the benefits of its extraordinary cash generation. Net debt originally peaked at US$138.9 in FY’17 following a large acquisition (and establishment of second leg) but this has been repaid so rapidly that I expect a return to net cash with brokers pencilling in net funds of US$81m at FY’22 and US$146m in ’23. None of that is factored into its FY’22 prospective PE of 6.8 (eps forecast 34p) at a time when copper prices have ne ...

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Central Asia Metals (May 2024)

Central Asia Metals - Swings to net cash of US$59.2m (May 2023)

Central Asia Metals - Low cost producer sees copper prices hit 6-month high (February 2023)

Central Asia Metals - Net cash increases to US$39m (November 2022)

Central Asia Metals - Prospect of higher prices drives chart break-out (May 2022)

Central Asia Metals - Eps to be ahead of expectations (February 2022)

Central Asia Metals - Net cash of US$150m forecast by FY 23 (November 2021)

Central Asia Metals (September 2021)

Central Asia Metals - Shares pop over 270p (May 2021)

Central Asia Metals - Hedging 30% production (February 2021)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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