Central Asia Metals stock jumps on solid earnings

Published 20/03/2025, 09:52
© Reuters.

Investing.com -- Shares of Central Asia Metals (LSE:CAML) rose by 8% today following the company’s announcement of its financial results, which aligned closely with consensus estimates. The miner reported a net cash position of $67.6 million and an EBITDA of $102 million, matching analyst expectations of $103 million.

The company’s adjusted earnings per share (EPS) of $0.29 slightly exceeded the consensus of $0.27, marking a positive 2% surprise. Despite free cash flow (FCF) coming in 11% lower than the anticipated $60 million, at $53 million, the miner declared a final dividend of 9.00 pence per share.

This brought the total dividend for the year to 18.00 pence per share, which is 18% lower than expected by RBC and 4% below the consensus estimate. However, the dividend represents 63% of the FCF, surpassing the company’s dividend policy of allocating 30-50% of FCF to shareholder payouts.

The unchanged production guidance for the fiscal year 2025, with expected outputs of 13-14 thousand tonnes (kt) of copper, 19-21 kt of zinc, and 27-29 kt of lead, provided investors with a clear outlook. The company also reiterated its capital expenditure guidance of $18-21 million and an additional $2-3 million for exploration capex.

Analysts from RBC commented on the company’s prospects, stating, "We see potential for further resource additions as CAML continues to drill into the Svinja Reka deposit... With c.70% of its earnings coming from copper, we view CAML as a discounted exposure to copper with a sector-leading FCF and dividend yield."

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