Central Asia Metals stock rises despite production dip

Published 08/04/2025, 10:04
© Reuters.

Investing.com -- Shares of Central Asia Metals (LSE:CAML) edged up 2.6% following the company’s latest production update. Despite reporting lower-than-expected production volumes for the first quarter due to harsher winter conditions and lower grades, the company reiterated its full-year 2025 production guidance, signaling confidence in its operational outlook.

Copper production at the company's Kounrad site was 2.85 kilotonnes, which is 21% of the FY25 guidance midpoint. Similarly, zinc and lead production at the Sasa mine were 4.60 kilotonnes and 6.61 kilotonnes respectively, each representing 23% of the FY25 guidance midpoint. Despite these shortfalls, Central Asia Metals confirmed its FY25 guidance for copper, zinc, and lead production at 13-14kt, 19-21kt, and 27-29kt respectively.

The company also announced the completion of the construction of the DST plant at Sasa within the first quarter, as previously guided, with further expansion of the landform set to continue throughout the year. Additionally, the company expanded its exploration activities, acquiring two more licenses in Kazakhstan, bringing the total to four. Promising drill results at Aberdeen have validated their exploration model, with further drilling planned for the second quarter.

RBC analysts commented on the update, stating, "We expect a neutral reaction to today's results. Although production volumes came in lower than expected (no consensus available), FY25 guidance was reiterated, and we expect production volumes to be weighted towards the second half of the year as Kounrad enters a seasonally strong period in the warmer months and operations at Sasa stabilize post the completion of the transition in mining method."

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