Central Asia Metals’ robust interim results were slightly dampened due to a tailings leak at its Sasa mine. Shares did finish up 2% following the results but had fallen 20% on the news of the leak a few days prior. I am bullish on CAML, the results show a company that can deliver good cash generation and manages its debt pile well. These are two factors that I believe are crucial to creating a healthy balance sheet and to position the company for growth. There are concerns regarding the Sasa leak but I believe the subsequent fall is an overreaction.
The company’s Sasa mine showed growth in both production and sales over the first half. Zinc production jumped to 12,200 tonnes from 11,500. While lead production jumped to 15,100 tonnes from 14,300. These production rates show a steady increase in production at the Sasa mine. Copper