Company Background – Central Asia Metals (CAML) plc.
Central Asia Metals (CAML) plc. is a base metals producer listed on the AIM market of the London Stock
Exchange with copper operations in Kazakhstan and a zinc and lead mine in North Macedonia. The company
is incorporated in the United Kingdom (based in London) and raised approximately £48 million at IPO in
September 2010. This capital was used to build the Kounrad recovery plant in central Kazakhstan. In
November 2017, the company completed the acquisition of the Sasa zinc and lead mine in North Macedonia
for a total consideration of approximately £315 million.
Assume that the company is now planning to expand further and build another extraction plant in
Uzbekistan within the next five (5) years. The company estimates that they would need to raise
approximately £120 million for this project.
Required
TASK 1 (1,000 WORDS)
Suppose you are part of the Accounting and Finance team at Central Asia Metals (CAML) plc. You are
required to write a report to the senior management team of CAML plc., discussing the importance of
accounting and finance functions, roles and duties within CAML plc with respect to both reporting and
decision-making aspects. Your discussion should include some examples within the company where
appropriate.
TASK 2 (1,500 WORDS)
Using the financial statements of Central Asia Metals (CAML) plc. presented below, complete the following
tasks:
a) Provide a brief explanation of the financial statements and their main elements supporting it by the
figures and trends from the statements below.
b) Using the figures presented in these financial statements, calculate the following ratios in each year:
Return on capital employed
Net profit margin
Current ratio
Average Receivable days/ Debtors collection period
Average Payable days/ Creditors collection period
You should clearly show all the formulas and calculations. The figures should be rounded to two decimal
places. Formulas and calculations are not part of the word count.
c) Using the results from your calculations, comment on the company’s performance based on the
results from and position between the two (2) years from (a), mentioning possible causes, reasons
and effects for the changes in the ratios.
In this section, please incorporate the discussion on the company’s performance from an investor
perspective, assuming that the company is planning to build another extraction plant in
Uzbekistan within the next five (5) years and would need to raise approximately £120 million for this
project.
(60 marks)
The summarised financial statements of Central Asia Metals (CAML) plc.
Please note that these are simplified statements and the figures used are not taken from the real accounts
