Berenberg downgrades Central Asia Metals stock to Hold on dividend concerns

Published 12/09/2025, 08:32
Berenberg downgrades Central Asia Metals stock to Hold on dividend concerns

Investing.com - Central Asia Metals Plc. (LON:CAML) stock rating was downgraded from Buy to Hold by Berenberg on Wednesday, with its price target reduced to GBP1.70 from GBP1.80.

The downgrade follows Central Asia Metals’ H1 results released on September 10, when the company’s shares fell 13.4%. Berenberg attributed the sharp decline to the company’s decision to substitute approximately half of the expected interim dividend with a USD10 million share buyback program extending to March 2026.

Berenberg noted that management’s commentary about bringing the dividend back in line with company policy of 30-50% of free cash flow, compared to the 67% average in 2023/24, likely contributed to selling pressure on the stock.

The research firm cited three key factors for its downgrade: near-term operational risk at the company’s Sasa mine, reducing shareholder returns, and ongoing uncertainty regarding Central Asia Metals’ merger and acquisition ambitions.

Central Asia Metals operates copper, zinc and lead mining operations, with assets primarily in Kazakhstan and North Macedonia.

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