Central Asia Metals LON:CAML has reported a fall in half-year earnings as lower ore grades and rising costs weighed on profits, prompting the AIM-listed miner to cut its dividend while launching a $10mn share buyback to placate investors.
For the six months to June 30, 2025, the group posted revenues of $99.5m, broadly flat against the $101.9m recorded a year earlier. Earnings before interest, tax, depreciation and amortisation declined more sharply, falling to $39.9m from $51.6m. The EBITDA margin narrowed to 40 per cent from 51 per cent in the prior year, reflecting inflationary pressures and lower sales volumes across its operations in Kazakhstan and North Macedonia.
Free cash flow dropped to $16.2m, just over half of the $30m generated in the comparable period last year. The company declared an interim dividend of 4.5p per share, down from 9p a year earlier, citing the need to align payouts more closely with its stated policy of distributing 30–50 per cent of free cash flow. In tandem, the board authorised a share repurchase programme of up to $10m.
Balance sheet strength
Despite reduced earnings, chief executive Gavin Ferrar highlighted the group’s balance sheet strength. Cash on hand stood at $47.7m at the end of June, though this was down from $67.6m at year-end. The position was subsequently bolstered by the $18.7m disposal of its stake in New World Resources, together with a $1.6m break fee.
“Kounrad continues to deliver reliable, low-cost copper production,” said Ferrar, referring to the group’s flagship Kazakh asset. “At Sasa, we achieved a major milestone with the commissioning of the dry-stack tailings plant, though ore variability remains a challenge.”
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Production across the portfolio slipped modestly in the first half. Copper output from Kounrad came in at 6,218 tonnes, against 6,608 tonnes a year earlier, while zinc and lead production at the Sasa mine also declined, reflecting weaker head grades. Payable zinc sales fell to 7,338 tonnes from 7,674 tonnes, while lead sales eased to 12,165 tonnes from 12,535 tonnes.
Nevertheless, the group delivered an exemplary safety record, recording zero lost-time injuries compared with one incident in the prior year.
Podcast: Low-cost mining with Central Asia Metals CEO, Gavin Ferrar
CAML reaffirms copper guidance
Looking ahead, the company reaffirmed its copper guidance for 2025 at 13,000–14,000 tonnes, while zinc and lead guidance was trimmed earlier in the summer to 17,000–19,000 tonnes and 25,000–27,000 tonnes respectively. Central Asia Metals is also transitioning to paste-fill mining methods at Sasa in an effort to improve recovery rates and operational efficiency.
The group’s appetite for growth remains undimmed despite the collapse of its proposed acquisition of New World Resources and its Antler project in the US. Ferrar insisted that the episode, while unsuccessful, underscored both management’s ambitions and shareholder support for a material transaction.
Pipeline of exploration ventures
Meanwhile, Central Asia Metals is nurturing a pipeline of exploration ventures. Drilling is nearing completion at the Arthrath base-metals project in Scotland through its investment in Aberdeen Minerals, with results expected in the second half. Its CAML Exploration unit is also evaluating four licences in Kazakhstan and will decide on 2026 drilling programmes by year-end.
“Growth remains a key priority,” said Ferrar. “We are determined to secure the right transaction to complement our portfolio, supported by the financial discipline that underpins our business.”
Shares in Central Asia Metals have been under pressure in recent months amid concerns about production at Sasa. The reduced dividend may test investor patience, though the buyback offers partial compensation. With copper production on track and exploration advancing, the second half will be crucial in restoring market confidence.
