Central Asia Metals plc

2025 revenue was $230 million, up 7% year on year. EBITDA was just under $102 million, with a 44% margin, and adjusted free cash flow was $56 million; cash at year-end was $80.1 million, including $0.4 million restricted cash, and capex was $19 million. Reported EPS was negative $0.4256, while adjusted EPS was $0.1851. Production was 13,311 tonnes of copper, 17,881 tonnes of zinc, and 25,156 tonnes of lead. Key non-cash items included a $117.5 million impairment at Sasa and a $0.3 million impairment for one CAML X license. For 2026, Kounrad copper guidance is 12,000 to 13,000 tonnes, Sasa zinc guidance is 18,000 to 20,000 tonnes and lead guidance is 26,000 to 28,000 tonnes, capex guidance is $14.5 million to $17.5 million, and CAML X exploration spend is expected to rise to $3 million to $3.5 million.

Gavin Ferrar said the business remains robust, supported by two producing assets and strong cash generation, and he framed the company as disciplined but still growth-oriented. He emphasized that management and the board continue to review strategy seriously, still want to replace depleting resources through exploration or acquisition, and do not favor a simple wind-down. His tone was confident about the long-term investment case, while acknowledging Sasa’s need for operational improvement and Kounrad’s natural production decline over time.

Louise Wrathall focused on the financial bridge from commodity prices and lower treatment charges to the year’s revenue growth, noting copper prices were up 10%, zinc 3%, and lead down 2%, with average copper above $10,000 per tonne. She explained that cost of sales rose 14% because of $4.1 million of silver purchases, $3 million of extra Sasa depreciation, and $3.5 million of higher royalties, while admin expenses rose 12% to $3.4 million partly due to $3.6 million of business development spend. She also detailed the $117.5 million Sasa impairment, the $10.9 million tax benefit tied to that impairment, Kounrad costs of $0.82 per pound versus $0.80, Sasa run-of-mine costs up $5 per tonne, and year-end cash of $80.1 million after $89.6 million of operating cash flow, $31.4 million of dividends, and $25.9 million of tax and withholding payments.

Analysts pressed management on whether it was time to stop pursuing acquisitions and instead return cash or even consider a strategic review. Gavin Ferrar said the board continues to prioritize growth, but he acknowledged shareholders can express views at the AGM and said a takeover offer would have to be evaluated if it created more value than continuing independently. Questions also focused on Kounrad’s medium-term production decline, where he said output should trend lower as the leach curve matures, but the asset could potentially be extended beyond 2034 if studies and approvals support it. On Sasa, management said the silver stream prevents the company from benefiting from high silver prices, and on the share price, Ferrar said the impairment had already been partly reflected by analysts but still hurt the stock relative to peers.