Central Asia Metals reports strong year
By Josh White
Date: Thursday 20 Mar 2025
(Sharecast News) - Central Asia Metals reported a solid set of 2024 results on Thursday, with increased revenue, strong free cash flow generation, and a maintained dividend, while remaining debt-free.
The AIM-traded company also provided production guidance for 2025 and an update on its exploration activities.
Group revenue rose to $214.4m, up from $203.5m in 2023.
EBITDA stood at $101.8m, slightly ahead of the prior year's $101m, with an EBITDA margin of 47%.
Free cash flow increased to $65.7m from $57.5m, supporting a final dividend of 18p per share, unchanged from 2023.
At year-end, CAML held $67.6m in cash, up from $57.2m the prior year, reinforcing its strong balance sheet with no outstanding debt.
Operationally, the Kounrad copper operation produced 13,439 tonnes, slightly lower than the 13,816 tonnes in 2023.
Sasa's zinc-in-concentrate production declined to 18,572 tonnes from 20,338 tonnes, while lead-in-concentrate output also fell to 26,617 tonnes from 27,794 tonnes.
The company reported two lost-time injuries, with a group-wide lost time injury frequency rate of 0.77, compared to 0.40 in 2023.
CAML said it continued its growth initiatives, investing $3.8m in Aberdeen Minerals, where initial drilling results confirmed the exploration model at the Arthrath project in Scotland.
The company also secured exploration licences in Kazakhstan through its 80%-owned subsidiary CAML Exploration, and achieved conformance with the Global Industry Standard on Tailings Management (GISTM).
For 2025, CAML was forecasting copper production of 13,000 to 14,000 tonnes, zinc-in-concentrate output of 19,000 to 21,000 tonnes, and lead-in-concentrate production of 27,000 to 29,000 tonnes.
Capital expenditure was expected to be between $18m and $21m.
The dry stack tailings plant at Sasa was scheduled to start operations in the first quarter, while a second drilling phase at Aberdeen's Arthrath project would commence in the second quarter.
CAML said it was also advancing early-stage exploration in Kazakhstan and plans to pursue further licence applications.
The company said it remained focused on identifying a material acquisition to expand its project pipeline while maintaining its financial discipline and commitment to shareholder returns.
"CAML achieved another year of solid financial performance in 2024, reporting EBITDA of $101.8m, and again recording a good safety performance, with no lost time injuries at our Kounrad in-situ dump leach, solvent extraction-electrowinning operation in Kazakhstan and two at our Sasa underground zinc-lead mine in North Macedonia," said chief executive officer Gavin Ferrar.
"CAML's strong cash generation, which amounted to $65.7 million of adjusted free cash flow, allowed the board to propose a final dividend of 9p per share.
"Assuming approval by shareholders, this will bring the total dividend for 2024 to 18p per share, well above our stated dividend policy and maintaining our industry-leading record of capital returns to shareholders."
Ferrar said that although that was above policy, the firm was comfortable with the level of distribution in the absence of a material transaction with which to grow the business, though he added that its determination to achieve such a step was "undiminished".
"2024 was a year of significant transition for CAML, both in our executive leadership team and in our operations.
"At Sasa, in particular, we continued to invest significant capital in the future of the business, extending the mine's life to at least 2039 through the transition to new mining methods.
"The investment has also involved optimising our ore haulage and other transport arrangements, and moving to international best practice in tailings disposal.
"The programme is now nearing the end of its main phase, and we look forward to enjoying the fruits of the hard work of all those involved in the years to come."
At 1219 GMT, shares in Central Asia Metals were up 4.51% at 166.8p.
Reporting by Josh White for Sharecast.com.
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