Central Asia Metals to Decide on Raising Output After TakeoverFirat Kayakiran
Central Asia Metals Plc will decide whether to increase production after the Kazakh copper company completes a takeover of the nation’s Kounrad waste dump project.
Central Asia, buying the 40 percent it doesn’t already own in Kounrad, may boost capacity to more than 15,000 metric tons from 10,000 by expanding the current plant or building a second, Chief Executive Officer Nick Clarke said today by phone. The takeover is expected to be completed by March, Clarke said.
Central Asia agreed to buy the stake from Kenges Rakishev, a Kazakh businessman, for 904,120 pounds ($1.4 million) and 21 million new shares, or 20 percent of the company, Clarke said.
“This is a one-off share issue,” he said. “We aren’t planning to issue more shares or take any debt to increase the output. We will fund it with our cash flow.” Central Asia pays dividends of 20 percent of attributable revenue, Clarke said.
Kounrad generated profit before tax of $35.9 million last year and had a gross asset value of $75.4 million as of Dec. 31, the company said today in a statement.