Central Asia Metals Hit by Lower Production, Announces Share Buy-Back

Central Asia Metals PLC (LON:CAML) reported interim results for the six months ended June 30, 2025, revealing a dip in revenue and profitability, tempered by a new share buy-back program.

The mining company's shares are down 10.2%following the announcements.

Group revenue decreased to $99.5 million from a restated $101.9 million in H1 2024. Earnings before interest, tax, depreciation and amortisation (EBITDA) also saw a decline, landing at $39.9 million compared to a restated $51.6 million in the prior year. The EBITDA margin contracted to 40% from 51%. Adjusted free cash flow (FCF) fell to $16.2 million, down from $30.0 million.

The company has declared an interim dividend of 4.5 pence per share, a reduction from the 9 pence paid out in H1 2024.

CAML also announced a share buy-back program of up to $10 million, set to commence immediately.

Despite the decrease in profitability, CAML maintains a flexible balance sheet. As of June 30, 2025, the company held $47.7 million in cash, alongside an overdraft of $6.6 million. A post-period boost of $18.7 million from the sale of shares in New World Resources, and a $1.6 million break-fee, has further strengthened the company's financial position.

Operational performance saw slight reductions in production across the board. Copper production at Kounrad was 6,218 tonnes, down from 6,608 tonnes in H1 2024, with sales of 5,744 tonnes compared to 6,415 tonnes.

Sasa's zinc-in-concentrate production was 8,692 tonnes (H1 2024: 9,014 tonnes), with payable zinc sales of 7,338 tonnes (H1 2024: 7,674 tonnes).

Lead-in-concentrate production at Sasa was 12,613 tonnes (H1 2024: 12,872 tonnes), with payable lead sales of 12,165 tonnes (H1 2024: 12,535 tonnes). Notably, the Group reported zero lost-time injuries (LTIs) during the period.

The company said it remains on track to meet its copper production guidance at Kounrad, projecting 13,000-14,000 tonnes. Production at Sasa is expected to meet revised guidance of 17,000-19,000 tonnes of zinc-in-concentrate and 25,000-27,000 tonnes of lead-in-concentrate.

Gavin Ferrar, Chief Executive Officer, commented that the Group remains in a strong financial position, boosted by the recent sale of shares in New World Resources and receipt of the related break-fee.