Central Asia Metals shares tumble as higher costs weigh on earnings

Central Asia Metals PLC on Wednesday halved its interim dividend as it posted lower revenue and profit.

The mining firm focused on Kazakhstan and North Macedonia reported pretax profit of $19.6 million in the six months that ended June 30, down 44% from $34.7 million a year earlier.

Shares in Central Asia Metals fell 11% to 154.60 pence on Wednesday morning in London.

Revenue was 2.4% lower at $99.5 million from $101.9 million, with the company attributing this to a decline in metals sales volumes.

Kounrad copper production reached 6,218 tonnes, down 5.9% from 6,608 tonnes as it reported sales of 5,744 tonnes, down 10%.

Central Asia Metals reported Sasa zinc-in-concentrate production of 8,692 tonnes, down 3.6% from 9,014 tonnes. Payable zinc sales were 4.4% lower at 7,338 tonnes.

Further, it achieved 12,613 tonnes of Sasa lead-in-concentrate production, down 2.0% from 12,872 tonnes, with payable lead sales of 12,165 tonnes, down 3.0%.

The weaker earnings for the trading period were primarily driven by increased costs.

Cost of sales rose 14% to $58.6 million from $51.3 million, and administrative expenses increased 24% to $14.3 million from $11.5 million.

Central Asia Metals also recorded a foreign exchange loss of $853,000, swinging from a gain of $930,000 a year earlier.

The company declared an interim dividend of 4.5 pence per share, down 50% from 9.0p a year earlier. However, Central Asia Metals also reported that it has initiated an up to $10 million buyback programme, running until March 31 next year.

Looking ahead, Central Asia Metals said it remains on track to reach its copper production guidance at Kounrad of 13,000-14,000 tonnes.

The company also backed its revised guidance for Sasa of zinc-in-concentrate production of 17,000-19,000 tonnes and lead-in-concentrate production of 25,000-27,000 tonnes.

‘I am pleased to report an outstanding safety performance across the group in H1 2025, with zero lost-time injuries,’ said Chief Executive Officer Gavin Ferrar.

‘We remain in a strong financial position, with cash in the bank at the end of June of $47.7 million which has since been boosted by the sale of our shares in New World Resources for $18.7 million and receipt of the related break-fee of $1.6 million,’ continued Ferrar.

Copyright 2025 Alliance News Ltd. All Rights Reserved.