2025 Full-Year Results
Summary by AI BETAClose X
19 March 2026
Central Asia Metals PLC
(the 'Group', the 'Company' or 'CAML')
2025 Full-Year Results
Central Asia Metals PLC (AIM: CAML) is pleased to announce its full-year results for the 12 months ended 31 December 2025 ('2025' or 'the period').
2025 financial summary
- Financial performance
o Group revenue of $229.9 million (2024: $214.4 million)
o Group EBITDA1 of $101.8 million (2024 restated2: $102.4 million)
o EBITDA margin1 of 44% (2024 restated2: 48%)
o Net loss of $75.2 million (2024 restated2 net profit: $51.2 million), after an impairment charge of $117.8 million
o Group adjusted free cash flow (FCF)1 of $56.0 million (2024: $65.7 million)
o 2025 final dividend 7.5 pence per share3, resulting in a full-year dividend of 12 pence (2024: 18 pence)
o Post period end completed share buyback programme of $10.0 million
- Flexible balance sheet
o At 31 December 2025, cash in the bank of $80.1 million4 (31 December 2024: $67.6 million) and an overdraft drawn of $0.9 million (2024: $0.3 million)
o Balance sheet offers significant financial capacity for growth
2025 operational summary
- One lost time injury (LTI) at Kounrad and zero at Sasa; Group lost time injury frequency rate (LTIFR)5 of 0.39 (2024: 0.77)
- Kounrad copper production of 13,311 tonnes (2024: 13,439 tonnes) and sales of 13,122 tonnes (2024: 13,521 tonnes)
- Sasa zinc-in-concentrate production of 17,881 tonnes (2024: 18,572 tonnes) and payable zinc sales of 14,961 tonnes (2024: 15,839 tonnes)
- Sasa lead-in-concentrate production of 25,156 tonnes (2024: 26,617 tonnes) and payable lead sales of 23,898 tonnes (2024: 25,560 tonnes)
1. See Financial Review section for definition of non-IFRS alternative performance measures.
2. See Note 43 to the Financial Information for details regarding the prior year restatement.
3. Subject to: (1) shareholders and the court approving the capital reduction that was announced by the Company on 10 March 2026 and the court order subsequently becoming effective; and (2), as expected thereafter, the Company having at the time the dividend is made sufficient distributable reserves to fund the dividend with reference to relevant accounts and otherwise complying with the requirements of Part 23 of the Companies Act 2006 (Distributions).
4. Includes minor restricted cash - see Note 28 to the Financial Information
5. The rate per million person-hours worked
2026 outlook
- Production guidance for 2026:
o Copper of 12,000 to 13,000 tonnes
o Zinc-in-concentrate of 18,000 to 20,000 tonnes
o Lead-in-concentrate of 26,000 to 28,000 tonnes
- Capex guidance for 2026 of between $14.5 million and $17.5 million, compared with $19.0 million spent in 2025
- Continued implementation at Sasa of measures to improve productivity and efficiency
- Work at Sasa aimed at increasing mine life, including exploration for additional mineral resources and evaluation of ore sorting designed to unlock additional value in the existing Mineral Resource
- Group exploration programme in Kazakhstan to include maiden drill testing of targets; up to 5,500 metres planned, targeting high-grade base metals
- Post period end CAML invested a further £0.85 million in Aberdeen Minerals (CAML 32.6%), to fund drilling at the Arthrath base-metals project, exploring for high-grade massive sulphide mineralisation
Gavin Ferrar, Chief Executive Officer, commented:
"CAML achieved solid operating results in 2025, with EBITDA of $101.8 million almost unchanged compared with the preceding year. This was underpinned by our low-cost Kounrad operation, with an improving contribution from Sasa over the course of the year.
"Although we have reported a net loss for 2025, after adjusting for the impairment charge and other exceptional items, our underlying attributable profit amounted to $32.6 million, and our free cash flow generation was a healthy $56.0 million. Consequently, the Board is pleased to recommend a final dividend of 7.5 pence per share3, bringing the total for 2025 to 12 pence, representing the upper end of our policy range of between 30% and 50% of free cash flow.
"2025 was a year in which we have sought to reset important elements of our business. These include improving productivity and efficiency at Sasa, along with prioritising exploration drilling at the operation, and, importantly, a redoubling of our efforts to secure a material transaction through which to grow.
"I look forward to 2026 to see the fruits of these efforts, and to the drilling programmes planned at our Group exploration projects in Kazakhstan and via our associate, Aberdeen Minerals, in Scotland, both of which have the potential to yield exciting results."
Analyst conference call and webcast
A live conference call and webcast hosted by Gavin Ferrar (Chief Executive Officer) and Louise Wrathall (Chief Financial Officer) will take place at 09:30 (GMT) today.
The conference call can be accessed by dialling 0808 109 0700 (UK toll free) or +44 (0) 33 0551 0200; or +1 786 697 3501 (US local) and quoting the confirmation code 'CAML FY25' when prompted by the operator.
The webcast can be accessed using the link:
https://brrmedia.news/CAML_FY25
The presentation will be available on the Company's website and there will be a replay of the call accessible following the presentation at https://www.centralasiametals.com
Presentation via Investor Meet Company
The Company will hold a live presentation via the Investor Meet Company platform at 16:30 (GMT) today. The presentation is open to all existing and potential shareholders. Questions can be submitted via the Investor Meet Company dashboard at any time during the live presentation. Investors can sign up to Investor Meet Company for free, and can add to meet Central Asia Metals PLC via:
https://www.investormeetcompany.com/central-asia-metals-plc/register-investor
Investors who already follow Central Asia Metals PLC on the Investor Meet Company platform will be invited automatically.
Market abuse regulations
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
All dollar amounts in this announcement are US dollars unless otherwise stated.
For further information contact:
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Central Asia Metals |
Tel: +44 (0) 20 7898 9001 |
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Gavin Ferrar |
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CEO |
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Louise Wrathall |
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CFO |
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Richard Morgan |
richard.morgan@centralasiametals.com |
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Investor Relations Manager |
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Peel Hunt (Nominated Adviser and Joint Broker) |
Tel: +44 (0) 20 7418 8900 |
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Ross Allister |
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David McKeown |
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Emily Bhasin |
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BMO Capital Markets (Joint Broker) |
Tel: +44 (0) 20 7236 1010 |
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Thomas Rider |
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Pascal Lussier Duquette |
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BlytheRay (PR Advisers) |
Tel: +44 (0) 20 7138 3204 |
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Megan Ray |
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Rachael Brooks |
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Note to editors:
Central Asia Metals, an AIM-quoted UK company based in London, owns 100% of the Kounrad SX-EW copper operation in central Kazakhstan and 100% of the Sasa zinc-lead mine in North Macedonia. The Company also owns an 80% interest in CAML Exploration, a subsidiary formed to progress early-stage exploration opportunities in Kazakhstan, and a 32.6% interest in Aberdeen Minerals Ltd, a privately-owned UK company focused on the exploration and development of base metals opportunities in northeast Scotland.
For further information, please visit www.centralasiametals.com and follow CAML on X at @CamlMetals and on LinkedIn at Central Asia Metals Plc
Chairman's Statement
The Annual Report is an opportunity not just to review the year past but also to look forward to the year ahead. We entered 2026 with the copper price reaching all-time highs, underpinned by constrained supply and growing demand. Consumption is being driven by the continued electrification of the world's energy use, boosted by the need for new infrastructure to handle the exponential growth in data management.
Meanwhile, an almost universal awareness has developed of the vital role the mining industry plays in producing raw materials fundamental to virtually every aspect of modern life. This is shaping government policies and public attitudes towards support for our industry.
Strategy informs Board decisions
In 2025, we maintained a sharp focus on our strategic objectives. Our Kounrad operation remains in the lowest quartile of copper cash operating costs worldwide. Nevertheless, we are not complacent, and our focus at Kounrad remains on optimising the operation to maximise the recovery of copper.
Our rigorous approach to cost management and margin performance across the Group necessitated a review of Sasa during the year. This was aimed firmly at supporting profitability, and enhancing operational and financial resilience. To this end, the Board decided to implement a limited hedging programme to protect Sasa's margins during 2026. The review process also contributed to changes in Sasa's life-of-mine plan, which led to a non-cash impairment charge. Details of the hedging and the impairment charge can be found in the Financial Review below.
We have invested significantly at Sasa in recent years to prepare the operation for the future, and we are now taking decisive action to address the challenges posed by geology, with better mine planning and improvements in operational efficiency. The latter has obliged us to take some difficult decisions regarding headcount, but we know this is the right course to protect the long-term future of the operation for the benefit of all stakeholders.
Having returned approximately $380 million to shareholders over the preceding 13 years, prudent capital allocation came to the fore in 2025, as the Board decided to bring the dividend back in line with our stated policy. Again, this was not an easy decision, but one taken with the clear aim of balancing returns to shareholders with conserving cash to fund future growth.
With this balance in mind, the Board has conditionally recommended a final dividend of 7.5 pence per share3 which, if approved, would bring the 2025 total to 12 pence per share. This represents 50% of adjusted free cash flow, at the upper end of our policy range of between 30% and 50% in the absence of a current material transaction.
At the time of the interim results, the Board also took the view that the Company's share price did not adequately reflect the long-term value of the business, and instigated a share buyback programme of up to $10 million. This programme was completed in early 2026.
In common with all mining companies, we have always been conscious of the depleting nature of our assets and the need to grow the business. Indeed, this drives the long-term element of our strategy: delivering growth. That objective lay behind our efforts during 2025 to acquire New World Resources and its Antler copper project in the US. Our bid led to a highly competitive process, from which we ultimately withdrew. Nevertheless, we drew a number of positives, not least the support of the majority of our major shareholders which was greatly appreciated.
We continue to allocate capital to exploration, which has the potential to be highly value-accretive. With this aim, we exercised a portion of our warrants in Aberdeen Minerals post year-end, to fund further drilling of a promising target, and we continue to fund our own Group exploration in Kazakhstan, where we look to 2026 for positive results.
Maintaining an experienced team
Following eleven years of service, David Swan stepped down from the Board in 2025, and we were delighted to welcome Alison Baker as an independent Non-Executive Director, replacing David as Chair of the Audit Committee.
Alison's industry knowledge and extensive experience are already proving invaluable to the Board, in terms both of its current operations and its business development activities. The entire Board thanks David for his valued contributions to CAML and wishes him well in future.
In September, we welcomed Jamie Karamatic as General Director at Sasa, replacing Chris Colbourne. During his three years at Sasa, Chris led the delivery of the Capital Projects, and we thank him for his efforts. Jamie is an accomplished mining engineer with wide-ranging operational experience, which will be of enormous value in the years ahead.
CAML's employees are key to the Group's success, and I would also like to take this opportunity to thank each of you for your contribution over the past year.
Looking ahead
I believe 2025 has demonstrated that we do not shy away from uncomfortable realities or taking difficult decisions. Our actions at Sasa, combined with our ongoing efforts to sustain the productive life of Kounrad and the ramp-up in our exploration activities, position us strongly to benefit from the exciting developments in commodity markets.
Nick Clarke
Non-Executive Chairman, 18 March 2026
Chief Executive Officer's Statement
The 2025 financial year, my first full year as CEO of your Company, further reinforced my long-held confidence in the resilience of our employees and in their abilities, as we faced both challenges and opportunities during the period. I believe this reflects the strong culture we have developed over many years.
Kounrad's copper production for the year was well within the guidance range we set at the start of the year, despite the effect that adverse weather had on production in the early months of 2025. This represents an outstanding achievement by the site team, and was delivered at cash operating costs that continue to be among the lowest in the copper sector.
At Sasa, we achieved a significant increase in ore production in 2025, though the challenges posed by geology, in particular the increased variability of the orebody, led to a reduction in mined grades and a revision to our zinc and lead production guidance at mid-year. Our team rose to the challenge, with a strong performance in the final quarter of the year helping Sasa to achieve revised guidance, and we look to increased production in 2026.
Most importantly, I am pleased to report that this work was conducted safely, continuing our excellent track record, with just one lost time injury (LTI) at Kounrad and none at Sasa. Our resulting lost time injury frequency rate was well below our target level.
In our corporate activities, the search for a material transaction again provided both opportunity and challenge. Although our bid to acquire New World Resources and its Antler project in the US was ultimately unsuccessful, it served to demonstrate both our determination to execute such a transaction and our capital discipline in withdrawing from the process at the appropriate time.
I would like to thank both the CAML Board for their support in this initiative, and CAML's business development team and our advisers for their tireless efforts. Incorporating lessons learnt, our business development team immediately resumed its programme of evaluating other potential projects that would represent a material transaction.
Competition for high-quality assets in base metals remains fierce, especially in copper, but we are confident that our existing cash resources and strong cash flows allow us to maintain a favourable position in the market, backed up by the technical expertise of our people, and we look forward to a positive outcome.
Financial overview
The steady production from Kounrad and recovering output from Sasa, aided by strong product prices, particularly in the final months of the year, resulted in revenue of $229.9 million.
Despite inflationary pressures at both operations, and the impact of the weakening of the US dollar on our operating costs at Sasa and at the corporate level, we posted EBITDA of $101.8 million, at an EBITDA margin of 44%. This reflects the financial strength of our business.
We continued to invest in our operations in 2025, with capital expenditure of $19.0 million, of which $4.9 million was spent at Kounrad and $14.1 million at Sasa. The expenditure at Sasa included $2.8 million on the final element of the Capital Projects, which together have transitioned the operation to paste-fill mining and dry-stack tailings, representing industry best practice.
As part of our efforts to restore Sasa to profitability, we have revised the operation's life-of-mine (LoM) plan based on its year-end reserves and resources. The consequent reduction in the LoM to 2034, along with updated assumptions for other factors, resulted in a non-cash impairment charge amounting to $117.5 million. Our current focus at Sasa is on measures to improve the operation's performance, which I describe in detail below.
Kounrad
Kounrad finished 2025 with a strong production performance, resulting in full-year output of 13,311 tonnes of copper, only fractionally below that of 2024 despite the natural limitations imposed by the physical characteristics of a dump-leach operation.
Thanks to our site team's constant focus on efficiencies, this production was achieved at a C1 cash operating cost of $0.82 per pound, which remains in the bottom quartile of cash costs worldwide. This was aided by the control of energy costs afforded by our Solar Power Plant, which supplied approximately 15% of Kounrad's total requirements in 2025, demonstrating the financial benefits of our environmental commitments.
Mindful of our aim to maintain Kounrad's productive life for as long as possible, we are encouraged by the continued production from the Eastern Dumps, where Kounrad's operations began in 2012. According to the initial estimates, the Eastern Dumps were scheduled to cease production in approximately 2024; whereas in 2025, despite no fresh material available at the Eastern Dumps, residual leaching contributed 14% of total production.
Overall, we have recovered approximately 16% more copper from the Eastern Dumps than originally envisaged.
Our commitment to the endurance of our operations at Kounrad extends into the community, where we aim to ensure a lasting impact well beyond the life of the operation. The long-term projects funded through the Kounrad Foundation focus on supporting education, vulnerable groups, infrastructure and sporting initiatives.
Sasa
Mining volumes at Sasa recovered strongly in 2025, with ore production rising 4% compared with 2024 and returning throughput close to the 800,000 tonnes per annum level. Meanwhile, the transition to new mining methods using underground paste backfill and switching a significant portion of our surface storage of tailings to the dry-stack method are both now firmly part of normal operations at Sasa.
However, as mining has progressed deeper, the orebody has typically become narrower. This change was anticipated, and indeed formed a key reason behind the adoption of new, more flexible mining methods over the past two years. In addition, the orebody is proving more variable with depth, both in grade and geometry, with the latter contributing to greater dilution. Head grades were lower in 2025, averaging 9% to 10% less than in 2024.
In response, significant efforts have been made to improve mine planning, in both the short and longer term. These include increasing the intensity of sampling of the working faces and additional external training of key personnel involved in orebody modelling.
CAML carried out a comprehensive review of Sasa in the second half of 2025, with the help of external consultants. A key area reviewed was ore production, both in terms of volume and grade, resulting in a number of recommendations which have been adopted.
Another area of focus has been cost control, and to this end the review included an assessment of appropriate staffing levels. By the end of the year, employees representing approximately 9% of the total workforce had agreed to leave the business, and further reductions have followed in 2026.
As noted above, the year-end re-evaluation of Sasa's resource and reserve resulted in a five-year reduction in the expected life of the operation and an associated impairment charge against the carrying value of the asset. This was due to a combination of a reduction in the Ore Reserve, driven mainly by revisions to the mine design and higher assumptions for operating costs, in addition to normal depletion, and the conservative decision to restrict the revised mine plan to material from the Svinja Reka deposit.
Exploration continues at Sasa, targeting potential extensions to the known mineralisation with the aim of increasing the Mineral Resource and extending the LoM.
In addition, there is significant potential in the portion of Sasa's mineralisation not included in the current mine plan. In this regard, a project to test the viability of ore sorting is under way, which may unlock more value in the lower-grade portions of the Mineral Resource, in particular with respect to the Golema Reka deposit.
The Sasa Foundation continued its important work in 2025, using funds donated by Sasa to assist in projects designed to support the local community, in areas such as education, helping small-business start-ups, and in providing facilities for young people and vulnerable members of society. Such projects are typically conducted in partnership with local organisations, and are aimed at making a lasting and positive impact on the lives of local people.
Outlook
Our production guidance for 2026 comprises between 12,000 tonnes and 13,000 tonnes of copper from Kounrad; and 18,000 tonnes to 20,000 tonnes of zinc, and 26,000 tonnes to 28,000 tonnes of lead from Sasa.
The guidance for Kounrad represents a modest reduction compared with production in 2025, and chiefly reflects the characteristics of the resource blocks scheduled to be leached in 2026.
At Sasa, the measures we have taken following the comprehensive review of the business in the second half of 2025, and the improved performance recorded in the final quarter of the year, have given us sufficient confidence to increase our production guidance.
Meanwhile, following the commissioning of the Dry Stack Tailings Plant during the first half of 2025, which represented the final element of the Capital Projects programme at Sasa, and the completion of the minor earth-moving project at Kounrad related to preparing Dump 15 for leaching, we expect capital expenditure at both operations to return to normal levels of sustaining capital.
2026 promises to be an exciting year for our exploration programmes, with maiden exploratory drilling planned for our subsidiaries in Kazakhstan. Nearer to home, post year end we invested a further £0.85 million in Aberdeen Minerals, an unlisted associate company exploring for base metals in northeast Scotland, with the investment to be used to fund drilling of a promising target indicated by previous exploration.
We enter 2026 with a highly positive market environment for our principal products, with the copper price reaching record high levels and zinc also showing strong performance. The now widespread recognition of the essential role these metals play in almost every aspect of daily life also serves to give us every confidence in their long-term demand.
Gavin Ferrar
Chief Executive Officer, 18 March 2026
Operational Review
Kounrad
Reliable, low-cost production
CAML's 100%-owned Kounrad operation delivered another year of reliable, low-cost production in 2025, at 13,311 tonnes of copper cathode, which was well within guidance. This took cumulative production from Kounrad's solvent extraction-electrowinning (SX-EW) plant to more than 178,000 tonnes since production commenced in 2012.
Kounrad generated revenue of $129.7 million (2024: $121.8 million) and EBITDA of $97.3 million (2024 restated: $89.4 million). The EBITDA margin of 75% (2024: 73%) reflects Kounrad's industry-leading cost performance.
Leaching operations
Both the Eastern and Western Dumps were simultaneously leached during 2025, with the production split amounting to 14% and 86%, respectively.
The average monthly area under leach at the Eastern Dumps during 2025 was 16.4 hectares, although during winter this reduced to 11.5 hectares owing to the need to perform the irrigation under covers. During the summer period irrigation flows were maintained at approximately 500 cubic metres per hour, whereas during winter the flow rate was approximately 350 cubic metres per hour.
Over the course of the year the average copper pick-up grade from the Eastern Dumps was 0.58 grammes per litre of pregnant leach solution (PLS). This grade was lower than in 2024, reflecting the fact that no fresh material remains at the Eastern Dumps, with only previously leached blocks now under seasonal rotation.
At the Western Dumps, the focus of irrigation remained on areas of Dumps 16, 21, 22 and 1A. The average daily area under irrigation was 35.2 hectares of both fresh and previously leached material. The volume of raffinate pumped around the site averaged 1,227 cubic metres per hour, virtually the same as the average rate in 2024. As in previous summer periods, a proportion of the off-flow solutions from the Eastern Dumps was recycled across to the Western Dumps with the aim of maintaining broadly stable PLS grades to the SX plant.
Application rates of solution to the dumps were maintained at a standard level of 2.5 litres per square metre per hour throughout the year. Under these conditions the average pick-up grade of copper in the PLS was 1.77 grammes per litre.
Regulatory legal and technical amendments to the approved Mining Operations Plan were obtained, along with the appropriate environmental permit, to enable earth-moving and irrigation works along the toe edge of Dump 15. This involved the transfer of 112.5 hectares of territory from a third party for inclusion within Kounrad's land allotment, and the co-operation of the third party involved was much appreciated.
The earth-moving works were required to provide a minimum 30-metre safe working zone from the dump edge to a railway line owned by the third party, thus allowing the excavation of an interceptor trench 1,425 metres in length which will be used to collect the PLS when Dump 15 is leached. Work commenced in April and was completed by August, with 348,545 cubic metres of material moved.
Adjacent to Block 15-22 a new transfer collection pond and pumping station was constructed, with a capacity of 3,500 cubic metres. Lining of the trench with high-density polyethylene (HDPE) will be completed during 2026, with first irrigation of Dump 15 material planned for 2027.
New winter ore blocks 16-31 and 16-32 were fully prepared, with 40% of block 16-33 covered as a potential reserve area. This work required installing 247,834 square metres of HDPE sheet coverings, along with the now standard double-strand dripper irrigation pipe.
During 2025 an additional 1,570 kilometres of dripper piping and over 12,800 metres of larger-diameter solution distribution pipes were installed.
SX-EW plant
The SX-EW plant continued to operate efficiently during 2025 and the overall operational availability for the year was 99.7%.
With the average Western Dumps in-situ copper grade of around 0.1% and the fact that the Eastern Dumps have already been extensively leached, the PLS grade entering the SX plant averaged 1.99 grammes per litre for the year. The average solution flow rate through the SX plant was 1,065 cubic metres per hour, approximately 3% less than in 2024. Based upon operational experience, this flow rate is considered an optimum level, without significantly increasing the losses of the organic extraction reagents.
Significant repair work to the HDPE protective linings of the eastern and western coalescer tanks was undertaken, along with the renewal of the lining in the EW1 electrolyte tank.
One of the four extraction mixer-settlers underwent extensive maintenance during the year, involving installation of reinforcing beams to stop vibration of the agitator assembly and renewal of the protective chemical coatings.
At year-end, following the arrival of capital equipment, preparations were advanced for the installation of a fourth Spintek filter unit which will assist in maintaining cathode quality and reducing reagent consumption. Extensive testing of alternative acid-mist suppressant reagents was also completed, in order to improve air quality in the tank houses, with a successful replacement identified.
In Q4 2025, operational adjustments were made to reduce the level of iron in the electrolyte streams, resulting in both improved power efficiency and lower entrainment of iron in cathode sheets.
During the course of 2025, a temporary reduction in quality was identified in respect of Kounrad's copper cathode. Following discussions with the relevant offtaker, an increased discount rate was agreed to be applied to address this variance. In H2 2025, the proportion of below-specification cathode was minimal, and had been largely eliminated by December.
In July, all the anodes and cathodes were renewed in the EW2 tank house, as scheduled. Orders were subsequently placed for the complete renewal of the anodes and cathodes within the EW1 tank house, with installation planned for mid-2026.
As part of a campaign to maintain high-quality copper production, two additional pieces of equipment were purchased from China for the semi-automatic cleaning and straightening of the stainless-steel mother plates. This process also extends the life of the mother plates, reducing the frequency at which replacements must be purchased.
Water stewardship remains central to CAML's strategy of sustained resilience. Kounrad operates a closed-loop in-situ dump leach system with minimal water loss, primarily through evaporation and solution retention within the dumps. Water is sourced from a combination of surface water and groundwater. During 2025, preparations commenced for a new surface-water abstraction point, which will allow year-round abstraction from Lake Balkhash and thus improve Kounrad's water resilience.
Water abstraction for leaching and SX-EW operations in 2025 totalled 847,004 cubic metres. This was 101% higher than in 2024 owing to the necessity of operating mainly on fresh ore blocks which have previously not been irrigated. When dry unleached materials are freshly irrigated, the in-situ moisture content needs approximately to double before steady-state solution outflow is observed.
Overall power consumption was 56.93 million kilowatt-hours, a reduction of approximately 2% compared with 2024, equivalent to 4,316 kilowatt-hours tonne of copper plated (approximately 1% lower than in 2024). Kounrad's total energy consumption in 2025, which includes coal used in the boilers to maintain the temperature of the PLS during the winter months, was approximately 4% less than in 2024.
Solar Power Plant
The 4.77 megawatt Solar Power Plant operated without interruption during the year, generating 8.8 million kilowatt-hours, approximately 9% more than in 2024. The 2025 total represented 15% of Kounrad's total annual power consumption.
During the months April to August, the facility contributed an average of 19% of Kounrad's total power requirement, with the lowest proportion in the month of December at 5%.
The Solar Power Plant's direct operating costs are approximately $76,000 per year (of which 64% is salary related), resulting in a direct production cost for electricity generated of 0.83 cents per kilowatt-hour. If depreciation and other costs are taken into account, the all-in unit cost is 3.8 cents per kilowatt-hour, compared with an average of 5.6 cents per kilowatt-hour for grid power. Based upon these outcomes the project payback is calculated at under eight years from implementation.
Health and safety
In 2025, Kounrad recorded one lost time injury (LTI) and two total recordable injuries (TRI), resulting in a lost time injury frequency rate (LTIFR) of 1.25 and a total recordable injury frequency rate (TRIFR) of 2.49. Incident, near-miss and hazard reporting increased during the year, reflecting sustained efforts over the past two years to strengthen safety culture and encourage open reporting. This increased visibility of risk is a positive indicator of workforce engagement and supports early intervention and injury prevention.
During the year, a site-specific safety culture plan was developed, aligned with the Group's broader safety culture framework. Although the plan will be formally launched in 2026, early implementation has already contributed to improved reporting and engagement, demonstrating the impact of continued focus on building a proactive and transparent safety culture.
During 2025, an occupational risk assessment was conducted for each role across the Kounrad site, resulting in the implementation of a number of measures aimed at preventing occupational health issues. New, more advanced personal protective equipment is regularly tested and adopted to help reduce occupational risks, and monitoring takes place to enforce mandatory use.
Copper sales
The Group continued to sell the majority (90%) of its copper production through offtake arrangements with Traxys, and this arrangement has been extended to the end of 2026 with Traxys having the option to extend for a further year thereafter.
In a competitive end-use copper market, maintaining high-quality specifications of product is particularly important. CAML ensured this was a priority focus throughout the year, with a number of improvements made throughout the production cycle and quality-control systems.
2026 production guidance
The guidance for Kounrad's copper cathode production in 2026 is between 12,000 tonnes and 13,000 tonnes. This represents a slight reduction compared with the total produced in 2025, owing to the characteristics of the resource blocks scheduled to be leached.
Sasa
Operational performance
In 2025, CAML's 100%-owned Sasa operation processed 799,080 tonnes, a significant improvement over 2024, although average head grades were lower, at 2.61% zinc and 3.35% lead.
Sasa produces a zinc concentrate and a separate lead concentrate which also contains silver. Total production for 2025 comprised 35,614 tonnes of zinc concentrate at a grade of 50.2% and 35,643 tonnes of lead concentrate at a grade of 70.6%. Following a challenging period mid-year, metal-in-concentrate production recovered in the final quarter of 2025, bringing contained zinc to 17,881 tonnes and contained lead to 25,156 tonnes, meeting the Group's revised guidance.
Sasa typically receives from smelters approximately 84% of the value of its zinc-in-concentrate and 95% of the value of its lead-in-concentrate. Accordingly, payable production in 2025 totalled 15,032 tonnes of zinc and 23,898 tonnes of lead. Payable metal-in-concentrate sales for 2025 were 14,961 tonnes of zinc and 23,898 tonnes of lead respectively.
During 2025, Sasa sold 380,433 ounces of payable silver to OR Royalties, in accordance with its streaming agreement, for which it received approximately $6 per ounce.
Sasa generated revenue of $100.1 million (2024: $92.7 million), resulting in EBITDA of $25.7 million (2024: $32.2 million). Capital expenditure totalled $14.1 million (2024: $18.0 million), of which $11.3 million was sustaining capital and $2.8 million was spent on the final elements of the Capital Projects programme, including establishing the Dry Stack Tailings (DST) landform.
Production statistics
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Units |
2025 |
2024 |
2023 |
2022 |
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Ore mined |
t |
796,171 |
762,456 |
805,621 |
806,069 |
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Plant feed |
t |
799,080 |
760,514 |
805,819 |
806,653 |
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Zinc grade |
% |
2.61 |
2.87 |
2.97 |
3.15 |
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Zinc recovery |
% |
85.7 |
85.2 |
85.0 |
84.6 |
|
Lead grade |
% |
3.35 |
3.71 |
3.70 |
3.63 |
|
Lead recovery |
% |
94.1 |
94.4 |
93.1 |
93.4 |
|
Zinc concentrate |
t (dry) |
35,614 |
36,967 |
40,226 |
42,824 |
|
Grade |
% |
50.2 |
50.2 |
50.6 |
50.1 |
|
Contained zinc |
t |
17,881 |
18,572 |
20,338 |
21,473 |
|
Lead concentrate |
t (dry) |
35,643 |
37,595 |
39,136 |
38,439 |
|
Grade |
% |
70.6 |
70.8 |
71.0 |
71.2 |
|
Contained lead |
t |
25,156 |
26,617 |
27,794 |
27,354 |
2025 marked the completion of the Capital Projects programme at Sasa, when the DST Plant entered operation at the end of Q1 2025. Meanwhile, the transition to mining using paste backfill (PBF) has continued to be implemented, with the move from sub-level caving to cut‑and-fill and long-hole stoping methods.
Transitioning from using conventional tailings storage facilities (TSFs) to DST greatly reduces water consumption and the risk of tailings dam failures, and improves long‑term geotechnical stability. The placement of tailings underground in historical voids and in current mining areas, via backfilling, offers significant environmental benefits, in particular a reduction in the quantity stored on surface. It also enhances ground support, benefiting safety, and maximises ore recovery and reduces surface disturbance. These practices support more sustainable mining, improved community and regulatory acceptance, and better alignment with modern environmental standards and best available technology.
Comprehensive improvement programme
As mining has progressed deeper at Sasa, the geology has presented increasing challenges. In particular, the orebody has become narrower, and the change in mining methods has been designed to provide flexibility and thus control dilution. In addition, the orebody has become more variable in both geometry and grade, impacting head grades and metal production, which has adversely affected profitability.
In response, in H2 2025 CAML undertook a comprehensive review of Sasa, with the help of external consultants, critically examining the business. These included mine planning and grade control, ore handling and processing plant throughput, productivity and staffing levels, and other cost-control measures.
The changes in geology and the business review also prompted a re-evaluation and reduction of Sasa's life-of-mine (LoM) to 2034, which now envisages mining up to approximately 830,000 tonnes annually over the eight years commencing 2026, with a reduced volume in the final year. This is reflected in the revised Ore Reserve estimate at 31 December 2025. The revised LoM plan envisages production solely from the Svinja Reka deposit.
The comprehensive business review also resulted in a number of recommendations designed to improve profitability.
In mining these have been aimed at both the long term, by improving understanding of the orebody at depth, and at the short term in better mine planning. Additional exploration drilling is a priority for 2026, and other actions planned or already under way include increasing the density of drilling used in mine planning and grade sampling; boosting the capacity of on-site assaying; and additional training of personnel involved in mine planning.
The drive for improvements in productivity has resulted in a reduction in staffing levels of approximately 11%, and other initiatives include improvements in development drilling, achieving greater advance from each blasting round, and changes in maintenance planning. This has resulted in an increase in productivity per employee-shift.
Cost control is a key focus, and measures taken include optimisation of inventory management and the re-tendering of large procurement contracts.
A project to test the viability of ore sorting is also under way, which may unlock value in lower-grade mineral resources, in particular with respect to the Golema Reka deposit.
Mining
The mine produced a total of 929,693 tonnes of ore and waste during the year, approximately 3.4% more than in 2024, including 796,171 tonnes of ore. The material was transported to surface via a combination of hoisting via the Golema Reka shaft and the Central Decline, the latter route using a fleet of 20-tonne haul trucks.
Ore development across the three working areas totalled 7,201 metres, a 2.6% decrease compared with 2024, including long-hole stoping development in the 990 level, the 910 level and the 830 level areas.
Waste development for the year totalled 4,411 metres, approximately 29% more than in 2024, generating 133,522 tonnes of waste rock, from a combination of internal ramp access and crosscuts to the orebody, and raise development and raise boring. The raise-boring activity is key to the provision of additional ventilation raises as the mine is developed to deeper levels. Waste rock is utilised in several applications after crushing, both underground (as road base to replace purchased aggregates) and on surface.
The Central Decline, a direct haulage completed at the end of 2024, is making a significant contribution to the efficient movement of ore and waste. During December 2025, haulage by truck accounted for 79% of material moved, with the balance hoisted by vertical shaft (which requires significant rehandling). This compares with 49% hauled by truck at the start of the year. The ventilation underground has also improved significantly.
Processing
Sasa processed 799,080 tonnes of ore during 2025, slightly above the planned level and 5.1% more than the total processed in 2024. Overall plant availability was 94.4%.
A significant number of improvement projects were implemented during the year in the processing plant:
- The asset integrity project to improve and/or replace critical infrastructure, principally supporting steel structures across the flotation, crushing and milling circuits. This work will continue in 2026.
- The water security and re-use project, developed for optimising the water supply to the processing plant. Changes are being implemented to re-use water from the PBF Plant, the DST Plant and from underground (mine adits).
- Replacement of tanks for the preparation of reagents.
- The sprinkler system for fire extinguishing on the conveyor belts in the crushing plant was extended.
Sasa's PBF Plant has been operating since late 2023. By the end of December 2025, a total of approximately 425,000 tonnes of tailings in the form of paste had been placed underground. The DST Plant operated consistently from its commissioning at the end of Q1 2025, and by the end of December over 260,000 tonnes of tailings had been filtered for placing on the initial landform.
Since the DST Plant became operational, tailings stored as dry tailings or underground as PBF represent approximately 75% of the total generated, compared with CAML's target of 70% by 2026.
Sasa's conventional TSFs are in conformance with the Global Industry Standard on Tailings Management (GISTM), an internationally accepted set of best practices for the management of TSFs. GISTM covers standards and practices over the entire TSF life cycle.
In 2024, following three years of work towards meeting GISTM, CAML elected to have Sasa TSFs and related management systems audited by an independent third party, Knight Piésold, which confirmed that the GISTM requirements were either in conformance or were met with 'a plan in place'. In 2025, Sasa followed up this initial conformance, and by September had completed all items that had been identified as met with 'a plan in place' in the 2024 audit.
At the time of the 2024 audit, the DST landform was not operational and thus did not form part of the audit. However, Sasa's independent consultants, Knight Piésold, were engaged throughout the construction of the DST landform, undertaking site visits and reviewing the work related to quality control.
The DST Plant and landform became operational during H1 2025, and an internal audit was completed during H2 2025. The results of this review are being assessed and will be used to identify priority actions to support conformance. Subject to progress, an external audit by an independent third party is planned for late 2026 or early 2027.
During 2025, further additional piezometers were installed in the seismic monitoring system for the conventional TSFs. The upgraded TSF management system can also monitor processing and other water flows, water levels, drainage flows, turbidity and other relevant information. Additional upgrades are planned in 2026.
Maintenance
The development of a computerised maintenance management system for all surface equipment continued during 2025, and approximately 90% of the equipment had been entered into the system by the end of the year. The computerised maintenance system for mobile equipment is already fully operational.
During 2025, additional equipment was purchased to assist in maintaining production and improve efficiency. The new equipment included a Simba underground drilling unit ideal for long-hole stoping, a Paus Minca underground truck for transporting fluids to service mobile equipment, and a variety of other utility vehicles and mobile equipment.
Exploration
A total of 7,052 metres of advance drilling was completed during the year across the five working areas, on the 990 level, the 910 level, the 830 level, the 800 level and the 750 level, to provide additional information on the grade and thickness of the three orebodies.
Exploration drilling included 2,749 metres completed from the 750 level to improve the geological understanding of the mineralisation of the Svinja Reka deposit at depth and along strike. (Note: levels are numbered in metres above a zero datum below the orebodies.)
In March 2025, a geologist and a mining engineer from a third-party consulting group visited Sasa to conduct an independent review of the Mineral Resource estimate and the Ore Reserve estimate. No fatal flaws were identified in the process, and recommendations for improvement have been actioned by the Sasa team.
Health and safety
In 2025, the operation recorded zero lost time injuries (LTIs) and one medical treatment injury (MTI) resulting in a total recordable injury frequency rate (TRIFR) of 0.56.
In 2025, Sasa developed a site-specific safety culture plan, aligned with the Group's broader safety culture framework, with the plan being formally launched in 2026.
In H1 2025, Sasa engaged with the local community as part of the establishment of an audio alarm system. A successful first alarm simulation was conducted in May, led by the Delchevo Crisis Management Centre (an independent body which acts on behalf of the government during national crises).
The audio alarm system is designed to alert people not just of potential incidents involving Sasa's TSFs, but of natural disasters or any other relevant danger that might affect the local community. As such, the system is officially part of the national alarm system.
The system forms part of Sasa's Emergency Preparedness and Response Plan (EPRP) for its TSFs, which is required under North Macedonian legislation and was prepared in collaboration with the University of Stip.
2026 production guidance
CAML has raised its guidance for ore mined and processed in 2026 year‑on-year to between 800,000 and 820,000 tonnes. Expected metal production in 2026 is 18,000 to 20,000 tonnes of zinc-in-concentrate and 26,000 to 28,000 tonnes of lead-in-concentrate.
This represents an increase compared with 2025 production, as the measures introduced in H2 2025 as part of the comprehensive business review begin to take effect.
Sasa Mineral Resource, Ore Reserve and LoM
During 2025, the technical services team updated Sasa's Mineral Resource Estimate (MRE) for the Svinja Reka and Golema Reka deposits and the Ore Reserve for the Svinja Reka deposit.
The updated work took into account recent additional drilling, mining depletion and, where applicable, changes to the assumptions for metal prices and transport charges used in the Net Smelter Return (NSR) calculations. Sasa's MRE and Ore Reserve are shown in the following tables.
The total Svinja Reka Mineral Resource has increased marginally, to 11.9 million tonnes at grades of 2.9% zinc and 4.0% lead (2024: 11.8 million tonnes at grades of 3.0% zinc and 4.2% lead), owing to additions resulting from drilling and higher assumptions for metals prices offsetting mining depletion and higher NSR cut-off values.
The total Golema Reka Mineral Resource is lower, at 8.6 million tonnes at grades of 1.2% zinc and 3.9% lead (2024: 9.3 million tonnes at grades of 1.2% zinc and 3.8% lead), owing principally to higher NSR cut-off values.
The Svinja Reka 2025 Ore Reserve is 6.9 million tonnes at grades of 2.5% zinc and 3.5% lead (2024: 9.2 million tonnes at grades of 2.4% zinc and 3.4% lead). The reduction in reserve tonnage is due principally to revisions to the mine design; the application of higher NSR cut-off values in response to increased assumptions for operating costs; revised assumptions for metals prices and concentrate treatment charges (TCs); and normal mining depletion.
Based on the latest Ore Reserve and Mineral Resource, CAML expects Sasa to maintain annual production rates of up to approximately 830,000 tonnes per annum for an expected LoM of nine years until 2034.
Mineral Resource Estimate for Svinja Reka and Golema Reka
Sasa's technical services team has updated the MRE for the Svinja Reka and Golema Reka deposits. This is given below, and has been reported in accordance with the terms and definitions of the JORC Code. In order to limit this to mineralisation that has reasonable prospects for eventual economic extraction, NSR cut-off values for each mining method were applied as in the notes below.
|
|
|
|
Grades |
Contained metal |
|||||
|
Classification |
Deposit |
Mt |
Zn (%) |
Pb (%) |
Ag (g/t) |
Zn (kt) |
Pb (kt) |
Ag (koz) |
|
|
Indicated
|
Svinja Reka |
9.6 |
3.0 |
4.2 |
32.8 |
290 |
404 |
10,100 |
|
|
Golema Reka |
1.8 |
1.3 |
4.1 |
13.8 |
24 |
75 |
810 |
||
|
Total Indicated |
11.4 |
2.8 |
4.2 |
29.8 |
314 |
479 |
10,910 |
||
|
Inferred |
Svinja Reka |
2.3 |
2.4 |
2.9 |
35.5 |
56 |
68 |
2,662 |
|
|
Golema Reka |
6.8 |
1.2 |
3.9 |
13.2 |
82 |
263 |
2,880 |
||
|
Total Inferred |
9.1 |
1.5 |
3.6 |
18.9 |
138 |
331 |
5,541 |
||
|
Total Mineral Resource |
20.5 |
2.2 |
3.9 |
24.9 |
452 |
810 |
16,451 |
||
Notes
The Mineral Resource and Ore Reserve are reported in accordance with the guidelines of the 2012 Edition of the Australasian Joint Ore Reserves Committee Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).
The Mineral Resource has an effective date of 31 December 2025.
The Competent Person for the declaration of the Mineral Resource is Graham Greenway, BSc Honours (Geology), PGeo. Mr Greenway, CAML's Group Geologist, is a Practising Registrant of the Professional Geoscientists of Ontario and has over 37 years' experience in the exploration, definition and mining of precious and base metal mineral resources, and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the type of activity which he is undertaking, to qualify as a Competent Person as defined by the JORC Code (2012) and as required by the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. He has reviewed, and consents to, the inclusion of these matters based on the information in the form and context in which it appears, and confirms that this information is accurate and not false or misleading.
The Mineral Resource is reported inclusive of the Ore Reserve.
The Mineral Resource is based on an NSR cut-off of $53 per tonne for sub-level caving, $65 per tonne for cut-and-fill stoping and $60 per tonne for long-hole stoping. The NSR block values are based on metal price assumptions of $3,041 per tonne for zinc, $2,506 per tonne for lead and $31 per ounce for silver (these prices allow the inclusion of mineralisation that has 'reasonable prospects for eventual economic exploitation' but which is not economic assuming the prices used for reporting the Ore Reserve).
The Mineral Resource is reported as undiluted. No mining recovery has been applied in the Statement.
Tonnages are reported in metric units, grades in percent (%) or grammes per tonne (g/t) and the contained metal in metric units or ounces. Tonnages, grades and contained metal totals are rounded appropriately.
Rounding may result in apparent summation differences between tonnes, grade and contained metal content.
Svinja Reka Ore Reserve Statement
The following Ore Reserve Statement, which has also been reported in accordance with the terms and definitions of the JORC Code, has been prepared by Sasa's technical services team based on a LoM plan that includes the transition from the sub-level caving mining method to cut-and-fill and long-hole stoping with paste backfill. The Ore Reserve Statement is a subset of the updated Indicated Resource, constrained within a practical and economic mine design. NSR cut-off values and design modifying factors for each mining method were applied as in the notes below.
|
|
|
|
Grades |
Contained metal |
|||||
|
Classification |
Deposit |
Mt |
Zn (%) |
Pb (%) |
Ag (g/t) |
Zn (kt) |
Pb (kt) |
Ag (koz) |
|
|
Probable |
Svinja Reka |
6.9 |
2.5 |
3.5 |
26.1 |
170 |
244 |
5,782 |
|
|
Total Ore Reserve |
6.9 |
2.5 |
3.5 |
26.1 |
170 |
244 |
5,782 |
||
Notes
The Ore Reserve has an effective date of 31 December 2025.
The Competent Person who takes responsibility for the Ore Reserve is Scott Yelland, CEng, FIMMM, MSc, who is an employee of, and Senior Technical Adviser to, CAML. He is a mining engineer with over 43 years' experience in the mining and metals industry, including operational experience in underground zinc and lead mines, and as such qualifies as a Competent Person as defined in the JORC Code (2012).
The Ore Reserve is reported using a NSR cut-off of $53 per tonne for sub-level caving, $65 per tonne for cut-and-fill stoping and $60 per tonne for long-hole stoping. The NSR block values are based on metal price assumptions of $2,644 per tonne for zinc, $2,179 per tonne for lead and $27 per ounce for silver.
The Ore Reserve has been estimated utilising 3D-modelling software (Deswik) and includes the application of a minimum mining width and practical mining shapes.
Rounding may result in apparent summation differences between tonnes, grade and contained metal content.
Growth Opportunities
Continued focus on growth
CAML continued to place a high priority on its future growth during 2025, both in seeking acquisition opportunities offering existing or near-term cash flow and with respect to the Company's longer-term exploration investments.
The business development team assessed a number of advanced opportunities within the Group's current areas of operation, as well as potential transactions in other jurisdictions.
One such opportunity resulted in CAML agreeing terms to acquire New World Resources, a company listed on the Australian Securities Exchange with a copper project in Arizona. However, a third party intervened and, after a series of offers and counter offers, ultimately CAML withdrew from the process.
The Group enters 2026 with a number of selected opportunities to pursue, in a range of jurisdictions, and remains focused on developing the business for the long term.
Group exploration
Group exploration continued to be focused on Kazakhstan in 2025, targeting high-grade, predominantly base metals prospects.
CAML X (80%-owned) undertook reconnaissance activity within four licence areas during the year and, following this work, two of the areas, Otyar and Yuzhnoe, are considered highly prospective and have been recommended for drill testing.
Of the two remaining licence areas, which do not fit CAML's selection criteria, one area, Shaindy, is recommended for further delineation work and possible farm-out to a third party, and the other has been returned to the licensing authority as its prospectivity is regarded as limited.
CAML XD (100%-owned) also recognised the Tengiz Basin as highly prospective, and in late 2025 was granted a licence in this region. In February 2026, CAML XD signed a term sheet for an option agreement to acquire a 100% interest in another licence area in this basin, which has potential for high-grade sediment-hosted copper mineralisation.
The CAML Group's 2026 exploration programme in Kazakhstan will include up to 5,500 metres of drill testing, over two or three projects, within an overall budget of between $3.0 million and $3.5 million, excluding administration costs.
Aberdeen Minerals
Aberdeen Minerals ('Aberdeen'), an unlisted associate company in which CAML owns a 32.6% interest, is exploring for base metals in Aberdeenshire, northeast Scotland. The second CAML-funded drilling programme on Aberdeen's wholly-owned Arthrath project commenced in May 2025. A total of 2,275 metres over five holes was drilled with borehole electromagnetic (BHEM) surveys conducted in all of the holes.
The drilling intersected thick intersections of sulphide-rich intrusive rocks, including classic semi-massive and massive sulphide textures associated with a dynamic conduit-related mineral system. Although these intersections are currently considered sub-economic, the drilling, combined with the geophysical survey results, has provided vectors for a target zone with high potential for massive sulphides in an undrilled area to the southwest, outside the current drilled footprint.
Post year end, CAML invested an additional £850,000 to test this target zone, through a drilling programme of up to 2,600 metres plus geophysical surveys, to be completed over approximately six months. To provide this funding, CAML exercised a portion of the warrants received as part of its initial £3 million investment in Aberdeen in 2024, increasing CAML's shareholding to 32.6% from 28.4% previously.
The warrants allowed for a further investment of up to £2 million, and agreement was also reached to extend the expiry of the remaining warrants to allow sufficient time for the exploration work on this southwestern target zone to be evaluated.
Financial Review
Financial performance
In 2025, CAML delivered consistent EBITDA compared with the prior year and continued to generate robust cash flows. Revenue growth, driven by higher copper and zinc prices, alongside lower treatment charges for zinc and lead for Sasa, offset operational challenges.
At Sasa, lower head grades led to a mid-year revision of production guidance. Updated assumptions in reserves and resources, and the updated cost base at year end reduced the life-of-mine at Sasa to 2034, resulting in an impairment charge. In response, CAML has taken decisive action to improve the future financial performance of the mine.
Having completed the Capital Projects at Sasa, with commissioning of the Dry Stack Tailings (DST) Plant and landform, key initiatives have been implemented to optimise revenue and reduce costs through targeted headcount reductions now totalling approximately 11% of the workforce, contract renegotiation and further progress with the new mining methods. These measures support the restoration of Sasa's profitability and cash flow generation, ensuring the long-term financial sustainability of the operation for the benefit of employees, the local community and wider stakeholders.
The Group remains effectively debt free, with a strong balance sheet, ending 2025 with cash in the bank of $80.1 million, and continues to provide attractive returns to its shareholders. The Board has conditionally recommended a final dividend of 7.5 pence per share, bringing the full-year dividend to 12 pence per share.
These achievements and operational foundations position CAML strongly to respond to market opportunities and challenges in 2026, supporting both financial sustainability and future growth.
Macroeconomic environment
Copper prices
Copper prices strengthened significantly in 2025, reflecting expectations of a shortage driven by concerns over disruptions at major mines and tariffs, as well as the metal's role in electrification, energy transition and infrastructure for artificial intelligence. Prices reached $12,300 per tonne in December and they continued to rally post year end, reaching record highs.
Zinc prices
Zinc prices reached levels of $3,100 per tonne by year-end 2025, driven by tight supply from production disruptions and Chinese smelter policies. Strong demand from construction and renewable energy projects, combined with constrained concentrate availability, supported further gains post year end.
Lead prices
Lead prices remained relatively stable in 2025, averaging approximately $1,975 per tonne. Prices rose post period end to around $2,020 per tonne, supported in part by the weaker US dollar, but subsequently retreated below $2,000 per tonne.
Treatment charges
Treatment charges (TCs) for both zinc and lead remained favourable to concentrate producers in 2025. Zinc TCs fell to multi-year lows, as smelter capacity outpaced available concentrate following mine closures and ongoing production issues, particularly in Asia, reinforcing tight market conditions and contributing positively to Sasa's financial performance.
Post year end, lead TCs have weakened further, turning negative owing to a continued lag in lead concentrate supply versus refined lead output. Conversely, zinc TCs are forecast to rise from 2025's historic lows, as concentrate availability improves with ramp-ups at large projects and smelter inventories rebuild. CAML's TC contracts commencing from 1 April 2026 reflect these recent trends.
Currency fluctuations
The functional currencies of the Group's main operations are the Macedonian denar (MKD) for Sasa, which is pegged to the euro, and the Kazakh tenge (KZT) for Kounrad. During the year, the US dollar weakened materially against the denar, increasing Sasa's cost base. Conversely, the tenge weakened against the US dollar during the year, driven principally by lower oil prices. This currency movement helped to offset cost pressures at Kounrad, partially mitigating the high in-country inflation, before the tenge strengthened to 510:1 KZT:USD towards the year end.
Inflation
Inflation remained elevated in the countries in which the Group operates. Inflation rates for the year averaged 12.3% in Kazakhstan and 4.1% in North Macedonia.
Performance overview
Revenue
CAML's 2025 revenue was up 7% versus 2024, to $229.9 million (2024: $214.4 million). The increase was primarily driven by increased commodity prices for copper and zinc, which rose by 10% and 3% respectively, as well as reduced TCs for zinc and lead owing to a tightening in the concentrate market.
EBITDA
The Group generated consistent EBITDA, at $101.8 million (2024 restated: $102.4 million), at an EBITDA margin of 44% (2024 restated: 48%). This reflects higher revenue, partially offset by an increase in the cost base. The higher costs were driven by the weakening of the US dollar, national inflation-linked pay rises across the Group, operation from the end of Q1 2025 of Sasa's DST Plant and associated landform, as well as corporate exploration and business development initiatives.
Kounrad's 2025 EBITDA increased to $97.3 million (2024 restated: $89.3 million), with an improved margin of 75% (2024: 73%). The increase reflects higher revenue from stronger copper prices, partially offset by a rise in costs, primarily due to higher MET charges and elevated payroll expenses, mitigated by the generally weaker tenge.
Sasa's 2025 EBITDA was $25.7 million (2024: $32.2 million), at a margin of 26% (2024: 35%). The margin decline was due predominantly to lower sales volumes arising principally from production constraints, in which lower head grades reflected variability in the orebody as mining progresses to deeper levels.
Additionally, there was an increase in costs driven by a rise in concession fees, the weakening of the US dollar, national pay levels and the operation of the DST Plant and landform. To address these challenges, steps were taken towards the end of the year through targeted headcount reductions now totalling approximately 11% of the workforce, and contract negotiations to enhance operational efficiency and support future profitability.
Impairment of non-current assets
At 31 December 2025, the Group recognised an impairment charge of $117.5 million in respect of the Sasa operation. This reflects the completion of the life-of-mine update at year end, incorporating the updated reserves and resources, the exclusion of Golema Reka from the mine plan and an increase in the cost base, which together reduced the life-of-mine to 2034.
Although this impairment reflects a reassessment of the long-term production profile, management has taken decisive actions to optimise operations, improve cash flow and maximise value over the remaining life of the mine.
Additionally, an impairment charge of $0.3 million was recognised against exploration assets as the Group is no longer pursuing the Zhamantas licence in Kazakhstan.
Earnings per share
Group loss before tax from continuing operations was $58.5 million (2024 restated: profit of $77.2 million), reflecting the impairment charge in respect of Sasa, higher royalty costs for MET and concession fees, increased salaries, labour settlement agreements and an adverse FX swing. Earnings per share (EPS) was therefore negative at 42.56 cents (2024 restated: positive EPS of 29.10 cents). Adjusted EPS of 18.51 cents is reported, which excludes the hedge arrangements and non-cash impairment charge (see Note 18 to the Financial Information for more information).
Free cash flow
CAML is highly cash generative and delivered adjusted free cash flow of $56.0 million in 2025 (2024: $65.7 million). Free cash flow was lower year-on-year primarily owing to a $6.4 million increase in income tax paid. Tax instalments are based on the previous year's taxation charge, resulting in higher cash tax payments following improved profitability in 2024 and 2025 predominantly in Kounrad. Additionally, sustaining capex and exploration increased by $3.1 million. Although free cash flow has declined, the Group had healthy year-end cash in the bank of $80.1 million (2024: $67.6 million), supporting the Board's conditional recommendation of a final dividend of 7.5 pence per share.
Business development activities
The Group continued to make significant investments in its future growth through key projects. During the year, CAML capitalised $1.7 million as exploration and evaluation in target-generative work.
Post year-end, CAML exercised a portion of its warrants to invest a further $1.1 million in cash in Aberdeen Minerals ('Aberdeen') bringing its shareholding to 32.6%. Use of these funds is predominantly for exploration drilling. Aberdeen is classified as an associate for accounting purposes.
Additionally, business development costs of $3.6 million (2024: $2.0 million) were incurred, primarily in relation to the bid for New World Resources (NWR), as the Group continued to evaluate new growth opportunities.
Income statement
Revenue
CAML generated 2025 revenue of $229.9 million (2024: $214.4 million), which is reported after the deduction of zinc and lead TCs and offtake fees.
Kounrad
Kounrad achieved revenue of $129.7 million for 2025 (2024: $121.8 million). This improved performance is attributable to the higher average copper price received, up 10% to $10,121 per tonne (2024: $9,219 per tonne), more than offsetting lower sales of 13,122 tonnes (2024: 13,521 tonnes).
Sales were made primarily under the Group's offtake arrangement with Traxys, which has been extended for a year from 1 January 2026 and commits a minimum of 90% of Kounrad's annual production. The offtake fees for Kounrad increased to $3.2 million (2024: $3.0 million) owing to the higher variable component within the buyers' fees.
Sasa
Sasa realised revenue of $100.1 million in 2025 (2024: $92.7 million), driven primarily by a significant reduction in TCs, which fell to $8.1 million (2024: $14.8 million) owing to improved market terms for both zinc and lead concentrates effective 1 April 2025.
Revenue also benefited from a higher realised silver price of $43/oz (2024: $28/oz); however, this benefit was offset by a corresponding increase in cost of sales in order to account for the streaming agreement with OR Royalties. Under this agreement, silver production is effectively sold at a fixed price of approximately $6/oz.
Zinc prices increased by 3% to $2,862 per tonne (2024: $2,766 per tonne), supporting revenue growth, whereas lead prices declined by 2% to $1,977 per tonne (2024: $2,023 per tonne). Sales volumes were also weaker, with payable zinc-in-concentrate down to 14,961 tonnes (2024: 15,839 tonnes) and lead-in-concentrate to 23,898 tonnes (2024: 25,560 tonnes), owing mainly to lower head grades during the period.
Offtake fees for Sasa remained consistent at $0.9 million (2024: $1.0 million), and zinc and lead concentrate sales agreements have been extended with Traxys on a one‑year rolling basis for 100% of Sasa's production.
Cost of sales
The Group cost of sales for the year was $124.0 million (2024 restated: $108.3 million). This figure includes depreciation and amortisation charges of $29.4 million (2024: $26.3 million). The rise was principally due to a combination of:
- higher payroll costs at both Kounrad and Sasa designed to match national pay rises;
- the introduction at Sasa of an underground allowance;
- an increase in the concession fees rate at Sasa and higher Mineral Extraction Tax (MET) payments at Kounrad from the stronger copper price;
- an increase in the volume of material going to alternative methods of tailings disposal at Sasa;
- currency effects from the weakening of the US dollar relative to the Macedonian denar;
- and additional depreciation for the capitalised DST Plant.
In addition, cost of sales includes $14.2 million (2024: $10.1 million) in open-market silver purchases to fulfil the silver stream commitment. However, the increase corresponds to the higher silver revenue noted above.
Kounrad
Kounrad's cost of sales for 2025 remained materially the same at $33.0 million (2024 restated: $33.4 million), owing to strong cost control and benefiting from the tenge's devaluation. Costs for certain reagents and electricity declined by $0.7 million overall, reflecting marginally lower production levels. This was partially offset by a $0.2 million rise in payroll costs driven by inflation-related salary increases.
The MET is a form of royalty charged by the Kazakh authorities at the rate of 8.55% on the value of metal recovered. MET charges for the year increased to $11.4 million (2024: $10.3 million) reflecting higher copper prices. Looking ahead, legislation has been passed to reduce the applicable MET rate for man-made mineral formations, including Kounrad, to 0.855%, effective from 1 January 2026.
Sasa
Sasa's cost of sales increased by 22% in 2025 to $91.0 million (2024: $74.8 million) driven by a number of factors. Concession fees doubled to $4.9 million (2024: $2.4 million), following an increase in the applicable rate from 2% to 4% effective 1 January 2025.
Employee-related costs rose by $2.5 million, reflecting a 10% general pay rise and the introduction of an underground allowance for relevant employees. In addition, the rise was driven partially by the weakening of the US dollar against the denar, which impacted the entire local cost base.
The completion of the transition to paste-fill mining methods contributed to additional depreciation of $3.0 million, and tailings disposal expenses rose by $1.4 million, reflecting increased volumes from both the Paste Backfill (PBF) Plant and the newly commissioned DST Plant and landform.
Finally, silver purchases made on the open market to satisfy the silver stream arrangement significantly increased, to $14.2 million (2024: $10.1 million), as a result of the silver price, which offsets the associated increase in revenue.
Distribution and selling costs
There was an increase in distribution and selling costs to $2.3 million (2024: $2.1 million), owing to an increase in shipping costs to customers further afield during the year as CAML was able to benefit from contracts with reduced TCs.
C1 cash cost of production
C1 cash cost of production is a standard metric used in the mining industry to allow comparison across the sector. The method of this calculation and assumptions are disclosed in the section on non-IFRS financial measures.
Kounrad
Kounrad's 2025 C1 cash cost of copper production was $0.82 per pound (2024: $0.80 per pound), based on a C1 cash cost of $23.9 million (2024: $23.7 million), which remains amongst the lowest in the industry. The increase in the C1 unit cash cost compared with 2024 was due to copper production being 128 tonnes lower, and an increase in the Traxys offtake fee by $0.3 million. Overall, the cost of production reduced, owing to the devaluation of the Kazakh tenge compared with the preceding year.
Sasa
Sasa's on-site operating costs increased by 13% to $55.4 million (2024: $49.2 million) and the on-site unit cost was $69.6 per tonne (2024: $64.6 per tonne). The increase was primarily due to higher payroll costs, the weakening of the US dollar and additional costs for the full operation of the DST Plant and landform.
Sasa's total C1 cash cost base, including realisation costs, decreased to $66.7 million (2024: $67.1 million), with higher operating costs offset by lower TCs. Sasa's C1 zinc equivalent cash cost of production increased to $0.79 per pound (2024: $0.76 per pound). The $0.03 per pound increase in the C1 calculation was primarily due to the increase in the total C1 cash cost base and the lower zinc production, plus the strength of the zinc price relative to that of lead which determines the proportion of the overall C1 cost base that is attributed to the zinc production.
Group
CAML reports its Group C1 unit cash cost on a copper‑equivalent basis, incorporating the production costs at Sasa with those of Kounrad and correspondingly converting Sasa's zinc and lead production into copper equivalents.
The Group's 2025 C1 copper-equivalent cash cost was $1.85 per pound (2024: $1.73 per pound). The calculation is based on Sasa's payable zinc and lead production converted to copper equivalents, added to Kounrad's copper production of 13,311 tonnes (2024: 13,439 tonnes). The increase in Group C1 unit cash costs on a copper-equivalent basis was due to lower production, higher aggregate costs at Sasa and the relative strength of the average copper price compared with the prices of zinc and lead.
CAML also reports its fully inclusive cost, which includes sustaining capital expenditure, local taxes (including the MET and concession fees), interest on any loans, and applicable corporate overheads, as well as the C1 cost component. The Group's fully inclusive copper-equivalent unit cost for the year was $2.78 per pound (2024: $2.54 per pound). The increase was due principally to higher C1 costs as detailed above, increased concession fees as well as additional sustaining capex at Kounrad.
Administrative expenses
During the year, administrative expenses, which includes Corporate, Kounrad, Sasa and CAML X, increased to $32.2 million (2024: $28.8 million). The increase largely reflects the Group's business development activities of $3.6 million (2024: $2.0 million), primarily focused on the bid for NWR, $0.4 million of costs associated with the Copper Bay disposal, and a $0.4 million increase in costs related to exploration activity in Kazakhstan not directly attributable to a licence and thus not capitalised.
Foreign exchange gain/(loss)
The Group reported a foreign exchange loss of $4.2 million in 2025 (2024: gain of $5.6 million) resulting from the re-translation of US dollar-denominated monetary assets held by foreign subsidiaries with a local functional currency, taking into account the weakening of the USD during the year.
|
Year-end rates |
2025 |
2024 |
2023 |
Change 2025 vs 2024 |
|
Kazakhstan tenge |
503 |
524 |
455 |
4% |
|
Macedonian denar |
52.31 |
58.88 |
55.65 |
13% |
Fair value movement of share-based payment liability
A charge of $8.0 million (2024: $4.0 million) was recognised to reflect the fair-value movement of the liability during the year. This reflects an increase in CAML's share price at year end and additional shares options granted.
Taxation
In 2025, the Group's income tax charges decreased to $16.2 million (2024: $25.9 million). This includes the CIT charge, which only decreased marginally to $21.1 million (2024: $22.0 million), owing to consistent profits at Kounrad, where taxes are levied at a CIT rate of 20% (Sasa is taxed at a rate of 10%). The impairment of the Sasa mineral rights contributed to a $10.9 million non-cash decrease in deferred income tax (2024: decrease of $1.3 million).
There was an increase in inter-group dividend distributions from Kazakhstan to the UK, which incurred a 10% withholding tax (WHT), totalling $6.0 million (2024: $5.1 million). From 1 January 2026, new legislation introduced in Kazakhstan has updated WHT on dividends, and CAML expects to pay 15% thereafter.
Discontinued operations
On 31 March 2025, the Company completed the sale of its 76.1% shareholding in Copper Bay Ltd (CBL) to Guardian Metals (since renamed Halo Minerals) for its proportionate share of $7.5 million in deferred payments. The entire consideration is contingent on the potential future production of copper and therefore at this stage has not been recognised in the financial information.
CBL, via its subsidiaries, held the mineral rights to a copper tailings project in Chile. The project was fully impaired in prior years, and the results of the Copper Bay entities were presented within discontinued operations.
Hedging arrangements
In December 2025, the Group entered into derivative contracts to hedge a portion of Sasa's 2026 zinc production and foreign exchange exposure. These arrangements comprise forward sales covering approximately 50% of Sasa's expected payable zinc production in 2026, at an average price of $3,011.5 per tonne, and forward purchases of euro covering approximately 50% of expected on-site cash operating costs, at an average exchange rate of $1.185 per euro.
Movements in market prices and exchange rates resulted in unrealised losses of $1.0 million on the zinc commitments and $0.2 million related to the foreign exchange contracts.
Statement of financial position
Financial assets at fair value through other comprehensive income (FVOCI)
During the year, CAML spent $16.7 million (A$25.6 million), including brokerage fees, on shares in NWR, acquiring a 12.1% shareholding. This investment initially represented an important strategic holding as part of the proposed acquisition of 100% of the issued share capital of NWR, which was expected to be concluded in September 2025 but failed to complete.
The shares were classified as financial assets measured at FVOCI because they were held as a strategic investment rather than held for trading. The shares were subsequently sold at a premium of $2.5 million recognised in other comprehensive income.
Capital expenditure
During the year, there were additions to property, plant and equipment of $19.0 million (2024: $20.8 million), as Sasa completed the Capital Projects programme for its transition to paste-fill mining.
Kounrad
The capital expenditure additions of $4.9 million (2024: $2.5 million) included one-off costs of $1.0 million incurred in relation to ore relocation activities at Dump 15, including loading, hauling, backfilling and road levelling. In addition, $1.2 million was incurred on the advance purchase of dripper pipes for leaching, and $1.5 million on new anodes and cathode mother plates for 2026.
Sasa
A total of $11.3 million (2024: $11.6 million) was spent on sustaining capital, with an additional $2.8 million (2024: $6.4 million) in relation to the completion of the transition to paste-fill mining. This included the DST Plant and tailings landform, covering geosynthetics, preparatory and construction works. The plant entered operation at the end of Q1 2025.
Capitalised mine development of $5.3 million reflected progress to access future production areas at Sasa. In addition, $1.5 million was spent on raise boring to establish new ventilation and ore access.
2026
CAML expects capital expenditure in 2026 of between $14.5 million and $17.5 million.
Exploration
The Group's policy is to capitalise exploration and evaluation costs that are directly attributable to areas where legal exploration rights are held.
During the year, $1.4 million of expenditure by CAML X was capitalised related to work at Yuzhnoye, Shaindy and Otyar, as well as $0.3 million at Sasa for surface and underground drilling. In addition to exploration work carried out, CAML X and CAML XD also undertook exploration-target generation, necessitating $1.4 million in pre-licence activities to be expensed as administrative expenses.
Looking ahead, the Group anticipates spending between $3.0 million and $3.5 million in 2026 on its exploration licences, including continued target generation efforts in Kazakhstan.
Working capital
At 31 December 2025, current trade and other receivables, and income tax recoverable totalled $11.7 million (31 December 2024: $8.7 million). The increase from the prior year was mainly due to an increase in accrued income of $3.3 million following a late shipment of concentrate not yet invoiced, and the overpaid Group CIT balance of $1.6 million (31 December 2024: $0.9 million) which was offset against CIT liabilities arising in the same entities in 2026. Additionally, this balance also includes trade receivables from the offtake sales amounting to $1.7 million (31 December 2024: $1.9 million).
As of 31 December 2025, a total of $5.3 million (31 December 2024: $3.7 million) of receivable value-added tax (VAT) was owed to the Group by the Kazakh authorities. Recovery is still expected through a continued dialogue with the authorities for cash recovery and further offsets against VAT payable on local sales.
At 31 December 2025, current trade and other payables totalled $23.7 million (31 December 2024: $17.2 million). These have increased because of higher MET payable of $1.4 million, owing to strong copper prices, and an additional $1.0 million for severance pay, and social security and taxes following targeted headcount reductions at Sasa.
Prior year restatement
At 31 December 2025, inventory was $20.6 million (31 December 2024 restated: $16.1 million). Inter-group sales and purchases at a mark-up between Kounrad's subsidiaries were not previously correctly reversed for unrealised profit on consolidation. This resulted in an understatement of inventory and a corresponding overstatement of cost of sales in the prior years. The comparative figures have been updated, with the cumulative impact reflected in opening retained earnings (see Note 43 to the Financial Information for details).
Cash and borrowings
At 31 December 2025, the Group had cash in the bank of $80.1 million (31 December 2024: $67.6 million) and $0.9 million (31 December 2024: $0.3 million) drawn under an overdraft facility.
Cash flows
Net cash flow generated from operations was lower, at $63.7 million (2024: $74.3 million), reflecting higher CIT payments totalling $25.9 million (2024: $19.6 million). This included $19.7 million (2024: $14.4 million) of Kazakh CIT, and WHT of 10% on dividends amounting to $6.0 million (2024: $5.1 million) paid during the year. In North Macedonia, $0.3 million (2024: $0.1 million) of CIT was paid in cash, in addition to a $1.7 million (2024: $1.4 million) non-cash payment offset against VAT and CIT receivable.
Sustaining capital expenditure across Kounrad, Sasa and CAML X totalled $16.2 million, which excludes Sasa Capital Projects expenditure of $2.8 million. As a result, CAML generated adjusted free cash flow of $56.0 million in 2025 (2024: $65.7 million). This was achieved while continuing to support capital investments, covering operating costs and funding business growth in exploration and business development initiatives.
In H2 2025, the Group commenced a share buyback programme, acquiring 2,512,804 Ordinary Shares for total consideration of $5.2 million by year end. The programme was completed in Q1 2026, with total costs (including transaction costs) amounting to $10.0 million.
Dividend
The Company's dividend policy is to return to shareholders a range of between 30% and 50% of the Group's free cash flow, defined as net cash generated from operating activities less sustaining capital expenditure, plus interest received and cash-settled share-based payments. During the year, the Company distributed $31.4 million (2024: $40.9 million), comprising the 2025 interim dividend of 4.5 pence per share and the 2024 final dividend of 9 pence per share (2024: 2024 interim dividend of 9 pence per share and 2023 final dividend of 9 pence per share).
In conjunction with CAML's 2025 annual results, the Board conditionally proposes a final dividend for 2025 of 7.5 pence per Ordinary Share. This would bring total dividends (proposed and declared) for the year to 12 pence per share (2024: 18 pence per share) which represents 50% of free cash flow. Subject to the conditions below being satisfied, the final dividend will be payable on 29 June 2026 to shareholders registered on 5 June 2026.
Given that the Company does not currently have sufficient distributable reserves to fund the recommended dividend, the payment of the dividend will be conditional upon: (1) shareholders and the court approving the capital reduction which was announced by the Company on 10 March 2026 and the court order subsequently becoming effective; and (2) as expected thereafter, the Company having at the time the dividend is made sufficient distributable reserves to fund the dividend with reference to relevant accounts and otherwise complying with the requirements of Part 23 of the Companies Act 2006 (Distributions).
This latest dividend will increase the amount returned to shareholders in dividends since CAML's 2010 Initial Public Offering to 200 pence per share, a cumulative distribution totalling $420.3 million including share buybacks.
Going concern
The Group sells and distributes its copper cathode product primarily through an annual rolling offtake arrangement with Traxys Europe SA, with a minimum of 95% of Kounrad's forecast output committed under this contract. The Group sells Sasa's zinc and lead concentrate product through an annual rolling offtake arrangement with Traxys. The commitment is for 100% of Sasa's annual concentrate production. The Group meets its day-to-day working capital requirements through its cash-generative operations. The Group manages liquidity risk by maintaining adequate committed borrowing facilities, and the Group had substantial cash balances at 31 December 2025.
The Board has reviewed forecasts for the period to December 2027 to assess the Group's liquidity, which demonstrate substantial headroom. The Board has considered additional sensitivity scenarios in terms of the Group's commodity price forecasts, expected production volumes, operating cost profile and capital expenditure.
The Board has assessed the key risks that could impact the prospects of the Group over the 'going concern' period, including commodity price outlook, cost inflation and supply chain disruption, with stress testing of the forecasts in line with best practice. Liquidity headroom was demonstrated in each reasonably possible scenario. Accordingly, the Directors continue to adopt the 'going concern' basis in preparing the consolidated financial information.
Non-IFRS financial measures
The Group uses alternative performance measures that are not defined by generally accepted accounting principles (GAAP), such as International Financial Reporting Standards (IFRS), as additional indicators. These measures are used by management, alongside the comparable GAAP measures, in evaluating the Group's business performance. The measures are not intended as a substitute for GAAP measures and may not be comparable to similarly reported measures by other companies.
The following non-IFRS alternative performance financial measures are used in this report.
Earnings before interest, tax, depreciation and amortisation
EBITDA is a valuable indicator of the Group's ability to generate liquidity and is frequently used by investors and analysts for valuation purposes. It is also a non-IFRS financial measure which is reconciled as follows:
|
|
2025 |
2024 |
|
(Loss)/profit for the year |
(75,158) |
51,165 |
|
Plus/(less): |
|
|
|
Impairment of non-current assets1 |
117,765 |
- |
|
Income tax expense |
16,178 |
25,896 |
|
Depreciation and amortisation |
30,350 |
27,088 |
|
Unrealised loss on financial derivatives |
1,179 |
- |
|
Share of post-tax loss of investment in equity accounted associate |
140 |
76 |
|
Fair value movement of share-based payments liability |
7,955 |
3,966 |
|
Foreign exchange loss/(gain) |
4,216 |
(5,638) |
|
Other income |
(2,121) |
(211) |
|
Finance income |
(1,792) |
(2,364) |
|
Finance costs |
2,612 |
2,192 |
|
Loss from discontinued operations |
474 |
183 |
|
EBITDA |
101,798 |
102,353 |
1. Includes impairment of Sasa of $117.5 million and CAML X exploration costs of $0.3 million.
Adjusted earnings per share
An adjusted EPS has been presented in Note 18 to provide a representation of the underlying earnings of the Group by removing exceptional items and those not expected to recur. This measure is reported to management on a monthly basis to support decision-making in relation to operational performance and dividend distributions. Adjusted EPS excludes the impairment of non-current assets, the associated deferred tax movement arising from the impairment of mineral rights, and losses on financial derivatives.
Revenue
Revenue is presented as the total revenue received from sales of all commodities, after deducting the directly attributable TCs associated for the sale of the Group's zinc, lead and silver, and offtake fees. This figure is presented inclusive of total revenue received in respect of the sale of copper cathode, and zinc and lead concentrates, and the revenue from silver sold to OR Royalties through CAML's streaming agreement.
Net cash
Net cash is a measure used by the Board for the purposes of capital management and is calculated as the total of the borrowings held, plus the cash and cash equivalents held at the end of the year. This balance does not include the restricted cash balance of $0.4 million (31 December 2024: $0.3 million).
|
|
31-Dec-25 |
31-Dec-24 |
|
Borrowings - bank overdraft |
(936) |
(252) |
|
Cash and cash equivalents excluding restricted cash |
79,673 |
67,318 |
|
Net cash |
78,737 |
67,066 |
Free cash flow
Free cash flow is a non-IFRS financial measure calculated as net cash from operations, less sustaining capital expenditure on property, plant and equipment and intangible assets, plus interest received, business development gains and cash-settled share-based payments.
|
|
2025 |
2024 |
|
Net cash generated from operating activities |
63,663 |
74,264 |
|
Less: purchase of sustaining property, plant and equipment |
(16,195) |
(14,352) |
|
Less: purchase of intangible assets |
(1,695) |
(459) |
|
Add: cash-settled share-based payments |
4,287 |
3,900 |
|
Add: business development gain of break-fee and profit on NWR shares |
4,055 |
- |
|
Add: interest received |
1,835 |
2,374 |
|
Adjusted free cash flow |
55,950 |
65,727 |
The purchase of sustaining property, plant and equipment figure above does not include the $2.8 million (2024: $6.4 million) of capitalised expenditure on the Capital Projects at Sasa. These costs are considered expansionary development costs required for the transition to paste-fill mining, rather than sustaining capital expenditure. Following the completion of these projects in 2025, no further adjustments to free cash flow from expansionary capex are expected going forward.
During the year, the Group amended the FCF to include the one-off business development gains arising from the receipt of a break-fee and profit on disposal of NWR shares, following the termination of the proposed acquisition of NWR. These have been included as they directly offset costs incurred in relation to business development costs.
C1 cash costs
C1 cash costs of production is a standard metric used in the mining industry to allow comparison across the sector. In line with the industry standard, CAML calculates C1 cash costs by including all direct costs of production at Kounrad and Sasa (reagents, power, production labour and materials, as well as realisation charges such as freight and treatment charges), in addition to local administrative expenses. Royalties, silver stream commitments, taxes and duties, depreciation and amortisation charges are not included in the calculation of the C1 cash cost.
This is considered to be a useful and relevant measure, as it is a standard industry measure applied by most major base-metal mining companies. It allows a straightforward comparison of the unit of production costs of different mines and an assessment of the position of each mine on the industry cost curve. It also provides a simple indication of the profitability of a mine when compared against the unit price of the relevant metal.
Sasa's C1 unit cash cost is measured in zinc equivalents, based on the Wood Mackenzie pro-rata approach, with costs allocated to Sasa's zinc production based on the relative revenue contributions of zinc, lead and silver revenue.
|
|
2025 |
2025 |
Production |
2025 |
|
Kounrad C1 cash costs |
23,924 |
100 |
13,311 |
0.82 |
|
Sasa C1 cash costs (zinc equivalent) |
66,650 |
39 |
15,032 |
0.79 |
|
Group C1 cash costs (copper equivalent) |
90,574 |
100 |
22,210 |
1.85 |
|
Reconciliation of Group C1 cash costs to Group costs (IFRS): |
|
|
|
|
|
Group C1 cash costs |
90,574 |
|
|
|
|
Plus: |
|
|
|
|
|
Royalties (Note 7) |
16,238 |
|
|
|
|
Taxes and duties (Notes 7, 9) |
885 |
|
|
|
|
Depreciation and amortisation (Note 5) |
30,350 |
|
|
|
|
Non-mining operations, unallocated EBITDA (Note 5) |
19,888 |
|
|
|
|
Other items, including inventories variation |
(22) |
|
|
|
|
Less: |
|
|
|
|
|
Group technical, support and marketing costs1 |
(489) |
|
|
|
|
Silver stream commitment (Note 7) |
(1,028) |
|
|
|
|
Offtake buyers' fee (Note 6)2 |
(4,161) |
|
|
|
|
Realisation charges3 |
(8,050) |
|
|
|
|
Group costs (IFRS) as shown below |
144,185 |
|
|
|
|
Group cost of sales (excl. silver purchases) |
109,738 |
|
|
|
|
Group distribution and selling costs |
2,295 |
|
|
|
|
Group administrative expenses |
32,152 |
|
|
|
|
Group costs (IFRS) |
144,185 |
|
|
|
For 2024
|
|
2024 |
2024 |
Production |
2024 |
|
Kounrad C1 cash costs |
23,740 |
100 |
13,439 |
0.80 |
|
Sasa C1 cash costs (zinc equivalent) |
67,100 |
39 |
15,614 |
0.76 |
|
Group C1 cash costs (copper equivalent) |
90,840 |
100 |
23,798 |
1.73 |
|
Reconciliation of Group C1 cash costs to Group costs (IFRS): |
|
|
|
|
|
Group C1 cash costs |
90,840 |
|
|
|
|
Plus: |
|
|
|
|
|
Royalties (Note 7) |
12,722 |
|
|
|
|
Taxes and duties (Notes 7, 9) |
926 |
|
|
|
|
Depreciation and amortisation (Note 5) |
27,088 |
|
|
|
|
Non-mining operations, unallocated EBITDA (Note 5) |
18,258 |
|
|
|
|
Other items, including inventories variation |
136 |
|
|
|
|
Less: |
|
|
|
|
|
Group technical, support and marketing costs1 |
(618) |
|
|
|
|
Silver stream commitment (Note 7) |
(984) |
|
|
|
|
Offtake buyers' fee (Note 6)2 |
(3,929) |
|
|
|
|
Realisation charges3 |
(14,784) |
|
|
|
|
Group costs (IFRS) as shown below |
129,655 |
|
|
|
|
Group cost of sales (excl. silver purchases) |
98,746 |
|
|
|
|
Group distribution and selling costs |
2,142 |
|
|
|
|
Group administrative expenses |
28,767 |
|
|
|
|
Group costs (IFRS) |
129,655 |
|
|
|
1. Certain technical, support and marketing activities are conducted on a centralised basis and recharged from the parent company to the operating entities, and are therefore included in the C1 cash cost figures. They are deducted to arrive at the Group cost (IFRS) reconciliation as transactions between Group companies are eliminated on consolidation.
2. For accounting purposes, the revenue amount is reported after deduction of offtake buyers' fees. Under the standard industry definition of cash costs, offtake buyers' fees are regarded as an expense and form part of the C1 cash costs figure.
3. For accounting purposes, the revenue amount is the net of the market value of fully refined metal less the treatment and refining charges. Under the standard industry definition of cash costs, treatment and refining charges are regarded as an expense and form part of the C1 cash costs figure.
On behalf of the Board
Louise Wrathall
Chief Financial Officer, 18 March 2026
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
Group |
|
|
|
Note |
2025 |
2024 (restated)* |
|
Continuing operations |
|
|
|
|
Revenue |
6 |
229,860 |
214,441 |
|
Cost of sales |
7 |
(123,965) |
(108,267) |
|
Distribution and selling costs |
8 |
(2,295) |
(2,142) |
|
Gross profit |
|
103,600 |
104,032 |
|
Administrative expenses |
9 |
(32,152) |
(28,767) |
|
Impairment of non-current assets |
19, 20 |
(117,765) |
- |
|
Other income |
10 |
2,421 |
863 |
|
Other losses |
11 |
(1,479) |
(652) |
|
Foreign exchange (loss)/gain |
|
(4,216) |
5,638 |
|
Operating (loss)/profit |
|
(49,591) |
81,114 |
|
Finance income |
15 |
1,792 |
2,364 |
|
Finance costs |
16 |
(2,612) |
(2,192) |
|
Share of post-tax loss of investment in equity accounted associate |
22 |
(140) |
(76) |
|
Fair value movement of share-based payment liability |
31 |
(7,955) |
(3,966) |
|
(Loss)/profit before income tax |
|
(58,506) |
77,244 |
|
Income tax |
17 |
(16,178) |
(25,896) |
|
(Loss)/profit for the year from continuing operations |
|
(74,684) |
51,348 |
|
Discontinued operations |
|
|
|
|
Loss for the year from discontinued operations, net of tax |
24 |
(474) |
(183) |
|
(Loss)/profit for the year |
|
(75,158) |
51,165 |
|
(Loss)/profit attributable to: |
|
|
|
|
Non-controlling interests |
21 |
(104) |
(231) |
|
Owners of the parent |
|
(75,054) |
51,396 |
|
(Loss)/profit for the year |
|
(75,158) |
51,165 |
|
(Loss)/earnings per share from continuing and discontinued operations attributable to owners of the parent during the year |
|
$ cents |
$ cents |
|
Basic (loss)/earnings per share |
|
|
|
|
From continuing operations |
18 |
(42.29) |
29.20 |
|
From discontinued operations |
|
(0.27) |
(0.10) |
|
From (loss)/profit for the year |
|
(42.56) |
29.10 |
|
Diluted (loss)/earnings per share |
|
|
|
|
From continuing operations |
18 |
(42.29) |
27.24 |
|
From discontinued operations |
|
(0.27) |
(0.10) |
|
From (loss)/profit for the year |
|
(42.56) |
27.14 |
* See Note 43 for details regarding the prior year restatement.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2025
|
|
|
Group |
|
|
|
Note |
2025 |
2024 (restated)* |
|
(Loss)/profit for the year |
|
(75,158) |
51,165 |
|
Other comprehensive income/(expense): Items that may be subsequently reclassified to profit or loss: |
|
|
|
|
Currency translation differences |
30 |
38,797 |
(27,261) |
|
Items that will not be subsequently reclassified to profit or loss: |
|
|
|
|
Remeasurements of defined benefit pension schemes |
32 |
(25) |
- |
|
Changes in the fair value of equity investments at FVOCI |
23 |
2,455 |
- |
|
Other comprehensive income/(expense) for the year, net of tax |
|
41,227 |
(27,261) |
|
Total comprehensive (expense)/income for the year |
|
(33,931) |
23,904 |
|
Attributable to: |
|
|
|
|
Non-controlling interests |
|
(104) |
(231) |
|
Owners of the parent |
|
(33,827) |
24,135 |
|
Total comprehensive (expense)/income for the year |
|
(33,931) |
23,904 |
|
Total comprehensive (expense)/income attributable to owners of the parent arises from: Continuing operations |
|
(33,353) |
24,318 |
|
|
|
|
|
|
Discontinued operations |
|
(474) |
(183) |
|
Total comprehensive (expense)/income for the year |
|
(33,827) |
24,135 |
* See Note 43 for details regarding the prior year restatement.
statements of financial position
as at 31 December 2025
|
|
|
Group |
Company |
|||
|
|
Note |
2025 |
2024 (restated)* |
1 Jan 2024 (restated)* |
2025 |
2024 |
|
Assets Non-current assets |
|
|
|
|
|
|
|
Property, plant and equipment |
19 |
238,790 |
318,744 |
338,121 |
1,035 |
1,450 |
|
Intangible assets |
20 |
22,896 |
21,371 |
25,425 |
- |
- |
|
Investments |
21 |
- |
- |
- |
5,107 |
5,107 |
|
Investment in equity accounted associate |
22 |
3,635 |
3,775 |
- |
3,635 |
3,775 |
|
Financial assets at FVTPL |
22 |
59 |
336 |
- |
59 |
336 |
|
Other non-current receivables |
25 |
6,546 |
6,616 |
13,801 |
- |
- |
|
Loans due from subsidiary |
26 |
- |
- |
- |
153,737 |
263,210 |
|
Deferred tax asset |
41 |
534 |
561 |
512 |
- |
- |
|
|
|
272,460 |
351,403 |
377,859 |
163,573 |
273,878 |
|
Current assets |
|
|
|
|
|
|
|
Inventories |
27 |
20,597 |
16,112 |
17,940 |
- |
- |
|
Trade and other receivables |
25 |
10,338 |
7,730 |
5,474 |
1,260 |
1,435 |
|
Loans due from subsidiary |
26 |
- |
- |
|
22,641 |
22,094 |
|
Income tax recoverable |
|
1,345 |
936 |
6,750 |
- |
- |
|
Restricted cash |
28 |
396 |
327 |
318 |
- |
- |
|
Cash and cash equivalents |
28 |
79,673 |
67,318 |
56,832 |
69,474 |
57,400 |
|
|
|
112,349 |
92,423 |
87,314 |
93,375 |
80,929 |
|
Assets classified as held for sale |
|
- |
61 |
76 |
- |
- |
|
|
|
112,349 |
92,484 |
87,390 |
93,375 |
80,929 |
|
Total assets |
|
384,809 |
443,887 |
465,249 |
256,948 |
354,807 |
|
Equity attributable to owners of the parent |
|
|
|
|
|
|
|
Ordinary Shares |
29 |
1,796 |
1,821 |
1,821 |
1,796 |
1,821 |
|
Share premium |
29 |
205,825 |
205,825 |
205,725 |
205,825 |
205,825 |
|
Capital redemption reserve |
29 |
25 |
- |
- |
25 |
- |
|
Treasury shares |
29 |
(13,885) |
(13,885) |
(15,413) |
(13,885) |
(13,885) |
|
Currency translation reserve |
30 |
(110,057) |
(148,428) |
(121,167) |
- |
- |
|
Retained earnings |
|
200,865 |
311,459 |
300,932 |
(8,983) |
100,654 |
|
|
|
284,569 |
356,792 |
371,898 |
184,778 |
294,415 |
|
Non-controlling interests |
21 |
(343) |
(1,485) |
(1,254) |
- |
- |
|
Total equity |
|
284,226 |
355,307 |
370,644 |
184,778 |
294,415 |
|
|
|
|
|
|
|
|
|
Liabilities Non-current liabilities |
|
|
|
|
|
|
|
Silver stream commitment |
34 |
13,902 |
14,978 |
16,042 |
- |
- |
|
Lease liability |
|
715 |
1,056 |
1,325 |
579 |
875 |
|
Share-based payment liability |
31 |
2,610 |
2,291 |
2,268 |
2,610 |
2,291 |
|
Employee benefit liabilities |
32 |
575 |
728† |
605† |
- |
- |
|
Provisions for other liabilities and charges |
36 |
37,190 |
25,272† |
26,196† |
113 |
99 |
|
Deferred tax liability |
41 |
7,160 |
16,613 |
18,983 |
- |
- |
|
|
|
62,152 |
60,938 |
65,419 |
3,302 |
3,265 |
|
Current liabilities |
|
|
|
|
|
|
|
Borrowings and loans due to subsidiary |
35 |
936 |
252 |
326 |
48,729 |
42,220 |
|
Silver stream commitment |
34 |
1,130 |
1,082 |
1,002 |
- |
- |
|
Trade and other payables |
33 |
23,720 |
17,173 |
17,265 |
7,797 |
5,959 |
|
Lease liability |
|
514 |
413 |
176 |
358 |
313 |
|
Share-based payment liability |
31 |
11,984 |
8,635 |
10,206 |
11,984 |
8,635 |
|
Employee benefit liabilities |
32 |
72 |
63† |
55† |
- |
- |
|
Income tax payable |
|
75 |
- |
62 |
- |
- |
|
|
|
38,431 |
27,618 |
29,092 |
68,868 |
57,127 |
|
Liabilities relating to assets classified as held for sale |
|
- |
24 |
94 |
- |
- |
|
|
|
38,431 |
27,642 |
29,186 |
68,868 |
57,127 |
|
Total liabilities |
|
100,583 |
88,580 |
94,605 |
72,170 |
60,392 |
|
Total equity and liabilities |
|
384,809 |
443,887 |
465,249 |
256,948 |
354,807 |
* The statements of financial position as at 1 January 2024 and 31 December 2024 have been restated for a prior period adjustment, see Note 43 for more detail.
† Defined benefit schemes and jubilee awards have been reclassified from provisions for other liabilities and charges to employee benefit liabilities (see Note 32).
CONSOLIDATED Statement of Changes in Equity
for the year ended 31 December 2025
|
|
Note |
Ordinary |
Share |
Treasury |
Capital redemption reserve |
Equity investment reserve |
Currency translation reserve |
Retained (restated)* $'000 |
Total (restated)* $'000 |
Non- |
Total (restated)* $'000 |
|
Balance as at 1 January 2024 (previously stated) |
|
1,821 |
205,725 |
(15,413) |
- |
- |
(121,167) |
297,871 |
368,837 |
(1,254) |
367,583 |
|
Restatement of retained earnings |
43 |
- |
- |
- |
- |
- |
- |
3,061 |
3,061 |
- |
3,061 |
|
Balance as at 1 January 2024 (restated)* |
|
1,821 |
205,725 |
(15,413) |
- |
- |
(121,167) |
300,932* |
371,898* |
(1,254) |
370,644* |
|
Profit/(loss) for the year (restated)* |
|
- |
- |
- |
- |
- |
- |
51,396* |
51,396* |
(231) |
51,165* |
|
Other comprehensive expense |
|
- |
- |
- |
- |
- |
(27,261) |
- |
(27,261) |
- |
(27,261) |
|
Total comprehensive income/(expense) (restated)* |
|
- |
- |
- |
- |
- |
(27,261) |
51,396* |
24,135* |
(231) |
23,904* |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
Modification of cash-settled share-based payment |
|
- |
- |
- |
- |
- |
- |
1,628 |
1,628 |
- |
1,628 |
|
Exercise of share options |
|
- |
100 |
1,528 |
- |
- |
- |
(1,628) |
- |
- |
- |
|
Dividends |
39 |
- |
- |
- |
- |
- |
- |
(40,869) |
(40,869) |
- |
(40,869) |
|
Total transactions with owners |
|
- |
100 |
1,528 |
- |
- |
- |
(40,869) |
(39,241) |
- |
(39,241) |
|
Balance as at 31 December 2024 (restated)* |
|
1,821 |
205,825 |
(13,885) |
- |
- |
(148,428) |
311,459* |
356,792* |
(1,485) |
355,307* |
|
Loss for the year |
|
- |
- |
- |
- |
- |
- |
(75,054) |
(75,054) |
(104) |
(75,158) |
|
Other comprehensive income/(expense) |
|
- |
- |
- |
- |
2,455 |
38,797 |
(25) |
41,227 |
- |
41,227 |
|
Total comprehensive income/(expense) |
|
- |
- |
- |
- |
2,455 |
38,797 |
(75,079) |
(33,827) |
(104) |
(33,931) |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
Disposal of subsidiary |
24 |
- |
- |
- |
- |
- |
(426) |
(1,393) |
(1,819) |
1,246 |
(573) |
|
Transfer of gain on disposal of equity investments at FVOCI |
23 |
- |
- |
- |
- |
(2,455) |
- |
2,455 |
- |
- |
- |
|
Dividends |
39 |
- |
- |
- |
- |
- |
- |
(31,386) |
(31,386) |
- |
(31,386) |
|
Shares purchased for cancellation |
29 |
(25) |
- |
- |
25 |
- |
- |
(5,191) |
(5,191) |
- |
(5,191) |
|
Total transactions with owners of the parent |
|
(25) |
- |
- |
25 |
(2,455) |
(426) |
(35,515) |
(38,396) |
1,246 |
(37,150) |
|
Balance as at 31 December 2025 |
|
1,796 |
205,825 |
(13,885) |
25 |
- |
(110,057) |
200,865 |
284,569 |
(343) |
284,226 |
* See Note 43 for details regarding the prior year restatement.
Company Statement of Changes in Equity
for the year ended 31 December 2025
|
Company |
Note |
Ordinary |
Share |
Treasury |
Capital redemption reserve |
Equity |
Retained |
Total |
|
Balance as at 1 January 2024 |
|
1,821 |
205,725 |
(15,413) |
- |
- |
104,891 |
297,024 |
|
Profit for the year |
|
- |
- |
- |
- |
- |
36,632 |
36,632 |
|
Total comprehensive income |
|
- |
- |
- |
- |
- |
36,632 |
36,632 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
Modification of cash-settled share-based payment to equity-settled |
|
- |
- |
- |
- |
- |
1,628 |
1,628 |
|
Exercise of share options |
|
- |
100 |
1,528 |
- |
- |
(1,628) |
- |
|
Dividends |
39 |
- |
- |
- |
- |
- |
(40,869) |
(40,869) |
|
Total transactions with owners |
|
- |
100 |
1,528 |
- |
- |
(40,869) |
(39,241) |
|
Balance as at 31 December 2024 |
|
1,821 |
205,825 |
(13,885) |
- |
- |
100,654 |
294,415 |
|
Loss for the year |
|
- |
- |
- |
- |
- |
(75,515) |
(75,515) |
|
Other comprehensive income |
|
- |
- |
- |
- |
2,455 |
- |
2,455 |
|
Total comprehensive income/(expense) |
|
- |
- |
- |
- |
2,455 |
(75,515) |
(73,060) |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
Transfer of gain on disposal of equity investments at FVOCI to retained earnings |
23 |
- |
- |
- |
- |
(2,455) |
2,455 |
- |
|
Shares purchased for cancellation |
29 |
(25) |
- |
- |
25 |
- |
(5,191) |
(5,191) |
|
Dividends |
39 |
- |
- |
- |
- |
- |
(31,386) |
(31,386) |
|
Total transactions with owners of the parent |
|
(25) |
- |
- |
25 |
(2,455) |
(34,122) |
(36,577) |
|
Balance as at 31 December 2025 |
|
1,796 |
205,825 |
(13,885) |
25 |
- |
(8,983) |
184,778 |
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2025
|
|
Note |
2025 |
2024 |
|
Cash flows from operating activities |
|
|
|
|
Cash generated from operations |
37 |
89,757 |
93,897 |
|
Interest paid |
|
(176) |
(66) |
|
Corporate income tax paid |
|
(25,918) |
(19,567) |
|
Net cash flow generated from operating activities |
|
63,663 |
74,264 |
|
Cash flows from investing activities |
|
|
|
|
Purchases of property, plant and equipment |
19 |
(19,026) |
(20,786) |
|
Proceeds from sale of property, plant and equipment |
19 |
84 |
66 |
|
Purchase of intangible assets |
20 |
(1,695) |
(459) |
|
Purchase of investment in equity accounted associate |
22 |
- |
(3,851) |
|
Purchase of equity investment at FVOCI |
23 |
(16,657) |
- |
|
Proceeds from sale of equity investment at FVOCI |
23 |
19,112 |
- |
|
Receipt of break fee related to New World Resources (NWR) |
23 |
1,600 |
- |
|
Interest received |
|
1,835 |
2,374 |
|
Increase in restricted cash |
|
(53) |
(57) |
|
Net cash used in investing activities |
|
(14,800) |
(22,713) |
|
Cash flows from financing activities |
|
|
|
|
Drawdown of overdraft |
35 |
20,463 |
3,563 |
|
Repayment of overdraft |
35 |
(19,841) |
(3,621) |
|
Payment of lease liabilities |
|
(536) |
(36) |
|
Shares purchased for cancellation |
29 |
(5,191) |
- |
|
Dividend paid to owners of the parent |
39 |
(31,386) |
(40,869) |
|
Net cash used in financing activities |
|
(36,491) |
(40,963) |
|
Effect of foreign exchange loss on cash and cash equivalents |
|
(77) |
(116) |
|
Net increase in cash and cash equivalents |
|
12,295 |
10,472 |
|
Cash and cash equivalents at the beginning of the year |
28 |
67,378 |
56,906 |
|
Cash and cash equivalents at the end of the year |
28 |
79,673 |
67,378 |
The consolidated statement of cash flows does not include the restricted cash balance of $396,000 (2024: $327,000) (Note 28). The restricted cash amount is held at bank to cover Kounrad subsoil user licence requirements. Under the terms of the licence agreement, the release or use of these funds is contingent upon obtaining written consent from the Kazakh government. The prior year cash and cash equivalents at 31 December 2024 includes cash at bank and on hand, included in assets held for sale, of $60,000 (Note 24).
Corporate income tax paid includes $5,977,000 (2024: $5,145,000) of Kazakhstan withholding tax paid on intercompany dividend distributions.
The notes below are an integral part of the consolidated financial information.
Notes to the financial information
for the year ended 31 December 2025
1. General information
Central Asia Metals plc ('CAML' or the 'Company') and its subsidiaries (the 'Group') are a mining organisation with operations in Kazakhstan and North Macedonia and a parent holding company based in England in the United Kingdom (UK).
The Group's principal business activities are the production of copper cathode at its 100% owned Kounrad SX-EW copper project in central Kazakhstan and the production of lead, zinc and silver at its 100% owned Sasa zinc-lead mine in North Macedonia. The Company also owns an 80% interest in CAML Exploration (CAML X), a subsidiary focused on early-stage exploration opportunities in Kazakhstan, and a 28.4% interest (increased to 32.6% in January 2026) in Aberdeen Minerals Ltd, a privately owned UK company focused on the exploration and development of base metals opportunities in northeast Scotland.
On 31 March 2025, the Company completed the sale of its 76% shareholding in Copper Bay Limited (CBL) to Halo Minerals PLC (formerly Guardian Metals PLC) (see Note 24). CBL, via its subsidiaries, held the mineral rights to a copper tailings project in Chile. The project was fully impaired in prior years.
On 4 June 2025, the Company established CAML XD, a 100%-owned subsidiary focused on advanced exploration projects and options for base metals in Kazakhstan.
CAML is a public limited company, limited by shares, which is listed on the AIM market of the London Stock Exchange and incorporated and domiciled in England, UK. The address of its registered office is Masters House, 107 Hammersmith Road, London, W14 0QH. The Company's registered number is 5559627.
2. Material accounting policy information
The material accounting policies applied in the preparation of the consolidated financial information are set out below.
Certain amounts reported from the prior year have been restated. Details of the restatement can be found in Note 43.
Basis of preparation of the financial information
The financial information set out herein does not constitute the Group's statutory financial statements for the year ended 31 December 2025, but is derived from the Group's audited financial statements. The auditors have reported on the 2025 financial statements and their reports were unqualified and did not contain statements under s498(2) or (3) Companies Act 2006, nor did they contain a material uncertainty in relation to going concern. The 2025 Annual Report was approved by the Board of Directors on 18 March 2026, and will be mailed to shareholders in April 2026. The financial information in this statement is audited but does not have the status of statutory accounts within the meaning of Section 434 of the Companies Act 2006.
The Group's consolidated financial statements have been prepared in accordance with international accounting standards as adopted in the United Kingdom and the Companies Act 2006. The consolidated financial statements have been prepared under the historical cost convention with the exception of financial instruments held at fair value through profit or loss (FVTPL) and held for sale assets that have been held at fair value. The accounting policies that follow set out those policies that apply in preparing the financial statements for the year ended 31 December 2025. The Group financial information are presented in US dollars ($) and rounded to the nearest thousand.
The parent company meets the definition of a qualifying entity under FRS 100 (Financial Reporting Standard 100) issued by the Financial Reporting Council. The parent company financial statements have therefore been prepared in accordance with FRS 101 (Financial Reporting Standard 101) 'Reduced Disclosure Framework' as issued by the Financial Reporting Council. As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation to share-based payments, financial instruments, fair value measurements, capital management, presentation of a cash flow statement, new standards not yet effective, impairment of assets and related party transactions. Where relevant, equivalent disclosures have been given in the Group financial statements of CAML.
The preparation of the Group financial information in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial information, are explained in Note 3.
Going concern
The Group sells and distributes its Kounrad copper cathode product primarily through an annual rolling offtake arrangement with Traxys Europe S.A. (Traxys) with a minimum of 90% of the SX-EW plant's annual forecasted output committed as sales. The Group sells Sasa's zinc and lead concentrate product through an annual rolling offtake arrangement with Traxys. The commitment is for 100% of the Sasa concentrate annual production. These arrangements support the Group's forecast sales and expected operating cash inflows and are an important factor considered by the Directors in their going concern assessment.
The Group meets its day-to-day working capital requirements through its profitable and cash-generative operations at Kounrad and Sasa. The Group manages liquidity risk by maintaining adequate committed borrowing facilities, and the Group has substantial cash balances as at 31 December 2025.
The Board has reviewed forecasts for the period to December 2027 to assess the Group's liquidity, which demonstrates substantial headroom. The Board has considered additional sensitivity scenarios in terms of the Group's commodity price forecasts, expected production volumes, operating cost profile and capital expenditure. The Board has assessed the key risks that could impact the prospects of the Group over the going concern period including commodity price outlook and cost inflation with stress testing of the forecasts in line with best practice. Liquidity headroom was demonstrated in each reasonably possible scenario. Accordingly, the Directors continue to adopt the going concern basis in preparing the consolidated financial information.
Please refer to Notes 6, 28 and 33 for information on the Group's revenues, cash balances and trade and other payables.
Climate change considerations
The Group's TCFD-aligned approach to climate change and CAML's Board-approved climate change strategy, that integrates the management of physical and transition risks as well as opportunities into the Company's strategic and operational planning processes are outlined in the CAML 2025 Sustainability Report and our climate change factsheet. These reports also provide an overview of potential impacts of the physical climate risk assessments conducted at each of the assets.
In accordance with the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 we provide transparent climate-related financial disclosures in our annual financial statements. These disclosures comply with the UK's climate-related reporting regulations, covering governance, strategy, risk management, and metrics. The potential effect of global decarbonisation scenarios and other transition risks, including the local operations' country climate policies, the energy costs, and key mining inputs influenced by carbon pricing, is an area that continues to be monitored and assessed.
The Group generates scope 1 GHG emissions directly through the combustion of fuels and energy at its operations, and scope 2 emissions indirectly through the consumption of electricity purchased from national grids that include fossil-based energy in their electricity production. CAML also discloses its Scope 3 emissions
The Company continues to implement its climate change strategy, with a primary focus on developing and executing energy decarbonisation projects in support of its objective of reducing 50% (Scope 1 and 2) GHG emissions by 2030 from a 2020 base year. As of 31 December 2025, the Company has achieved a 45% (2024: 44%) reduction. Additionally, we are committed to achieving net zero by 2050, and we will apply this commitment through our business development activities by ensuring that climate and carbon emissions are embedded in our decision-making processes.
CAML first undertook structured climate scenario planning in 2022. In 2025, the Group commissioned an updated scenario analysis to enhance transparency, improve methodological rigour and strengthen alignment with TCFD and ISSB requirements. The updated assessment evaluates three hybrid scenarios, combining recognised transition pathways with IPCC physical climate projections.
The potential impact of these scenarios on asset valuation for financial reporting purposes has been assessed. Management has incorporated climate change considerations into the preparation of the consolidated financial information. These considerations, essential to the Group's strategy and operations, were factored in across various areas, including:
‣ Impairment analysis and future cash flow projections in life-of-mine models.
‣ Asset retirement obligations, including conceptual closure plans that account for physical risks, such as potential impact from increased forest fires and water stress, that has been factored into the water management strategies as well as the tailings storage facilities, long-term monitoring and climate change contingency provisions; and
‣ The inclusion of climate change targets and performance measures within the Group's LTIP.
The impact of climate-related strategic decisions is integrated into management's assessments and estimates, particularly regarding future cash flow projections supporting the recoverable amounts of mining assets, once the strategic decisions have been approved by the Board. While climate change considerations did not significantly impact key accounting judgements and estimates in the current year, the focus on climate-related strategic decisions may have a substantial impact in future periods.
New and amended standards and interpretations adopted by the Group
The Group has adopted the following standards and amendments for the first time for the annual reporting period commencing 1 January 2025. The following have no impact on the current reporting period as they are either not relevant to the Group's activities or require accounting that is consistent with the Group's current accounting policies:
‣ Lack of Exchangeability (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates).
‣ Annual Improvements to IFRS Accounting Standards - Volume 11: Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements and IAS 7 Statement of Cash Flows.
New standards, interpretations and amendments not yet effective
There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Group has decided not to adopt early.
The following amendments are effective for the annual reporting period beginning 1 January 2026:
‣ Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7).
‣ Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7).
‣ Annual Improvements to IFRS Accounting Standards - Volume 11: Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, and IAS 7 Statement of Cash Flows.
These standards are not expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.
The following standards and amendments are effective for the annual reporting period beginning 1 January 2027:
‣ IFRS 18 Presentation and Disclosure in Financial Statements.
‣ IFRS 19 Subsidiaries without Public Accountability: Disclosures.
The Group is currently assessing the effect of these new accounting standards and amendments.
IFRS 18 Presentation and Disclosure in Financial Statements, which was issued by the IASB in April 2024, supersedes IAS 1 and will result in major consequential amendments to IFRS Accounting Standards including IAS 8 Basis of Preparation of Financial Statements (renamed from Accounting Policies, Changes in Accounting Estimates and Errors). Even though IFRS 18 will not have any effect on the recognition and measurement of items in the consolidated financial statements, it is expected to change the presentation and disclosure of certain items. These changes include categorisation and sub-totals in the statement of profit or loss, aggregation/disaggregation and labelling of information, and disclosure of management-defined performance measures.
The Group does not expect to be eligible to apply IFRS 19.
Basis of consolidation
The Group financial information consolidate the financial statements of CAML and the subsidiaries it controls drawn up to 31 December 2025. Control exists where the Group has power over the investee, exposure or rights to variable returns, and the ability to use its power to affect those returns. Subsidiaries are consolidated from the date control is obtained until the date control ceases. Intra-group balances, transactions, income and expenses are eliminated on consolidation. Non-controlling interests are presented separately within equity.
Goodwill
Goodwill is not amortised and is tested annually for impairment and whenever indicators of impairment arise. For the purpose of impairment testing, goodwill is allocated to the cash-generating unit (CGU) expected to benefit from the business combination in which the goodwill arose. See Notes 19 and 20 for management's determination of CGUs.
The carrying value of the goodwill generated by accounting for the business combination of the Group acquiring an additional 40% in the Kounrad project in May 2014 (the Kounrad Transaction) requires an annual impairment review. The key assumptions used in the Group's impairment assessments and sensitivity analysis are disclosed in Note 19 and Note 20.
Investment in equity accounted associate
The Group and the Company have accounted for the Aberdeen Minerals Ltd ('Aberdeen') shareholding of 28.4% (increased to 32.6% in January 2026) as an associate using the equity method, as CAML is deemed to have significant influence (see Note 22).
Financial assets at FVTPL
As part of the investment in Aberdeen, CAML was issued warrants to subscribe for an additional 18,181,818 ordinary shares in Aberdeen at an exercise price of 11 pence per share. These warrants are classified as financial assets measured at FVTPL in accordance with IFRS 9. The fair value of these instruments has been determined using the Black-Scholes valuation model, incorporating the probability of various outcome scenarios and is categorised as a level 3 measurement (IFRS 13).
Subsequent to initial recognition, the warrant is remeasured at fair value at each reporting date.
Equity investments at fair value through other comprehensive income (FVOCI)
During the year, CAML invested $16,657,000 (AUD $25,500,000) in New World Resources (NWR), acquiring a 12.1% shareholding. The shares were classified as equity investments measured at FVOCI because, at date of purchase, they were held for strategic investments rather than for trading. Therefore, in accordance with IFRS 9, the Group made an irrevocable election at initial recognition to present changes in fair value in OCI; a classification that is most relevant to the Group's strategic objectives.
Equity investments at FVOCI are recognised on the date of acquisition of the financial instrument at cost plus directly attributable transaction costs. After initial recognition, they are remeasured at fair value at each reporting date, with all realised and unrealised gains or losses movements recognised in other comprehensive income. The fair value of these quoted securities is based on published market prices (Level 1 valuation technique). On derecognition of an equity investment, any cumulative gain or loss in OCI is transferred to retained earnings rather than recycled through profit or loss. In July 2025, the Company sold its shares in NWR, realising a gain of $2,455,000, which has been transferred to retained earnings.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, which is considered to be the Board. The Group's segment reporting reflects the operational focus of the Group. The Group has been organised into geographical and business units based on its principal business activities of mining production, having three reportable segments as follows:
‣ Kounrad (production of copper cathode) in Kazakhstan
‣ Sasa (production of lead, zinc and silver) in North Macedonia
‣ Exploration (CAML X and CAML XD exploration activities) in Kazakhstan
Included within all other segments are corporate costs for Central Asia Metals plc and other companies within the Group that are not separately reported to the Board.
Foreign currency translation
The functional currency for each entity in the Group is determined as the currency of the primary economic environment in which it operates. The consolidated financial information is presented in US dollars, which is the Group and Company presentation currency. The functional currency of the Company is US dollars.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost comprises the aggregate amount paid and the fair value of any other consideration given to acquire the asset and includes costs directly attributable to making the asset capable of operating as intended.
The cost of the item also includes the cost of decommissioning any buildings or plant and equipment and making good the site, where a present obligation exists to undertake the rehabilitation work.
Development costs relating to specific mining properties are capitalised once management determines a property will be developed. A development decision is made based upon consideration of project economics, including future metal prices, reserves and resources, and estimated operating and capital costs. Capitalisation of costs incurred during the development phase ceases when the property is capable of operating at levels intended by management and is considered commercially viable.
Costs incurred during the production phase to increase future output by providing access to additional reserves are deferred and depreciated on a units-of-production basis over the component of the reserves to which they relate. Ore Reserves may be declared for an undeveloped mining project before its commercial viability has been fully determined.
Development costs incurred after the commencement of production are capitalised to the extent they are expected to give rise to a future economic benefit. Development costs are not depreciated until such time as the areas under development enter production.
Depreciation is provided on all property, plant and equipment on a straight-line basis over its total expected useful life. As at 31 December 2025, the remaining useful lives were as follows:
|
‣ Construction in progress |
- not depreciated |
|
‣ Land |
- not depreciated |
|
‣ Plant and equipment |
- over 5 to 9 years |
|
‣ Mining assets |
- over 2 to 9 years |
|
‣ Motor vehicles |
- over 2 to 9 years |
|
‣ Office equipment |
- over 2 to 9 years |
|
‣ Right-of-use assets |
- term of lease agreement |
Mineral rights are depreciated on a Unit of Production basis (UoP), in proportion to the volume of ore mined in the year compared with probable reserves as well as indicated and certain inferred resources that are considered to have a sufficiently high certainty of commercial extraction at the beginning of the year. Assets within operations for which production is not expected to fluctuate significantly from one year to another or which have a physical life shorter than the related mine are depreciated on a straight-line basis.
Construction in progress is not depreciated until transferred to other classes of property, plant and equipment.
Intangible assets
a) Exploration and evaluation expenditure
Capitalised costs include expenditures directly related to any Group exploration and evaluation activities in areas of interest where the Group has obtained the legal rights to explore. These costs are capitalised pending the determination of the technical feasibility and commercial viability of the project. Capitalised costs are classified as either tangible or intangible exploration and evaluation assets, depending on the nature of the assets acquired.
Exploration and evaluation expenditure capitalised includes acquisition of rights to explore, topographical, geological, geochemical and geophysical studies, exploration drilling, trenching, sampling and activities in relation to the evaluation of the technical feasibility and commercial viability of extracting a Mineral Resource. Administration costs not directly attributable to a specific exploration area are charged to the income statement.
Exploration and evaluation assets are measured at cost less amortisation and provision for impairment, where required. Amortisation is generally not charged during the exploration and evaluation phase, except for licence costs paid in connection with the right to explore, which are capitalised and amortised over the term of the permit. Pre-licence costs are recognised in the income statement as incurred.
b) Mining licences, permits and computer software
The historical cost model is applied, with intangible assets being carried at cost less accumulated amortisation and accumulated impairment losses. Intangible assets with a finite life have no residual value and are amortised on a straight-line basis over their expected useful lives with charges included in either cost of sales or administrative expenses:
|
Computer software |
- over 2 to 5 years |
|
Mining licences and permits |
- over the duration of the legal agreement |
Impairment of non-financial assets
The Group carries out impairment testing on all assets when there exists an indication of an impairment. If any such indication exists, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or CGU's fair value less costs to sell or its value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset.
Revenue
Revenue is measured at the fair value of consideration received or receivable from sales of metal to an end user, net of any buyers' discount, treatment charges and value added tax. Revenue is net of treatment charges, as the cost of smelting and refining is borne by the customer and the transaction price is agreed to be net of these charges. The Group recognises revenue when the control of the promised goods or services has been transferred to the customer.
The value of consideration is fair value, which equates to the contractually agreed price. The offtake agreements provide for provisional pricing, ie the selling price is subject to final adjustment at the end of the quotation period based on the average price for the month following delivery to the buyer. Such a provisional sale contains an embedded derivative, which is not required to be separated from the underlying host contract, being the sale of the commodity. At each reporting date, if any sales are provisionally priced, the provisionally priced copper cathode, zinc and lead concentrate sales are marked to market using forward prices. Any significant adjustments (both gains and losses) are recorded in revenue in the income statement and as accrued income within trade and other receivables in the statement of financial position. In addition to the provisional pricing adjustments, accrued income also includes revenue that has been earned but not yet invoiced or received as of the reporting date, based on the terms of the relevant agreements.
The revenue arising from silver relates to a silver stream arrangement with OR Royalties Inc. (formerly Osisko Gold Royalties Ltd) where the Group has agreed to sell all of its refined silver at approximately $6 per ounce for the life of the mine, significantly below market value and arising from the silver stream commitment inherited on the acquisition of the Sasa mine (Notes 6 and 34). The silver is produced by the Sasa mine as a by-product of the lead concentrate and, because Sasa does not operate a refining process, the silver is sold to smelters for further refining as part of the lead concentrate under a separate lead concentrate sales agreement which is reported within revenue. Consequently, all of the refined silver required to be delivered under the silver stream arrangement must therefore be sourced through purchases of silver on the open market which is reported within cost of sales.
Silver stream commitment
The silver stream arrangement has been accounted for as a commitment as the Group has obligations to deliver silver to a third party at a price below market value. On acquisition, following completion of the business combination, the silver stream commitment was identified as an unfavourable contract and recorded at fair value. Payments received under the arrangement prior to the acquisition by the Group were not considered to be a transaction with a customer. Management has determined that the agreement is not a derivative as set out in IFRS 9 as it will be satisfied through the delivery of non-financial items (ie. external purchases of silver), rather than cash or financial assets. In addition, the contract meets the exceptions for contracts entered into that continue to be held in accordance with the entity's expected sale requirements (see Note 3). Subsequent to initial recognition, the silver stream commitment is not revalued and is amortised on a UoP basis to cost of sales.
Inventory
Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value. The cost of finished goods and work in progress comprises raw materials, direct labour and all other direct costs associated with mining the ore and processing it to a saleable product.
Restricted cash
Restricted cash is cash with banks that is not available for immediate use by the Group. Restricted cash is shown separately from cash and cash equivalents on the statement of financial position. The restricted cash amount is held at a bank to cover Kounrad subsoil user licence requirements.
Share capital
Ordinary Shares are classified as equity. Incremental costs directly attributable to the issuance of new shares are shown in equity as a deduction, net of tax, from the proceeds.
Capital redemption reserve
On 10 September 2025, the Company announced the initiation of a share buyback programme to purchase Ordinary Shares of $0.01 each in the Company for up to a maximum aggregate consideration of $10,000,000. The share buyback programme is in line with the general authority to re-purchase, in the market, up to 18,190,494 Ordinary Shares.
The capital redemption reserve (CRR) is a statutory reserve created to comply with section 733 of the UK Companies Act 2006 when shares of a company are redeemed or purchased wholly out of the company's profits. Amounts transferred from share capital to CRR must be equal to the nominal value of the shares bought back.
Treasury shares
Where any Group company purchases the Company's equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the Company's equity holders until the shares are cancelled or reissued. Where such Ordinary Shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company's equity holders.
The Company set up an Employee Benefit Trust (EBT) during 2009 for the purpose of satisfying awards granted under the Company's Employee Share Plans. The EBT is accounted for under IFRS 10 and consolidated on the basis that the parent has control, thus the assets and liabilities of the EBT are included on the parent company statement of financial position. Ordinary Shares allotted to the EBT are treated as treasury shares as a deduction from equity in the consolidated statement of financial position.
Share-based payments
The Group operates a share option scheme accounted for as cash-settled. The share-based payment liability is measured at fair value at each reporting date using the Monte-Carlo and Black-Scholes models which incorporate the terms of the share options and the services rendered by employees. Any changes in the liability, other than cash payments, are recognised in the consolidated income statement. The fair value of the options includes the dividends employees are entitled to during the vesting period, which are factored into the option pricing model.
Since the settlement of share options remains at the Company's discretion, future modifications may occur if the Company opts to settle the liability in equity rather than cash. In such cases, the liability will be reclassified to equity, with a corresponding adjustment made at the modification date.
Employee benefits liabilities
Pursuant to the labour law prevailing in the North Macedonian subsidiaries, the Group pays retirement benefits to employees for an amount equal to two average monthly salaries, at their retirement date. The Group is also obliged to pay jubilee anniversary awards for each ten years of continuous service of the employee.
Retirement defined benefit obligations arising on severance pay are stated at the present value of expected future cash payments towards the qualifying employees. These benefits have been calculated by an independent actuary in accordance with the prevailing rules of actuarial mathematics and recognised as a liability with no pension plan assets (Note 32). Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited in other comprehensive income and are not recycled to profit or loss, with service cost recognised over the employees' expected average remaining working lives.
Derivative financial instruments
In December 2025, the Company put into place commodity price and foreign exchange hedging arrangements to reduce its exposure to risks from commodity price and foreign exchange movements. The derivative financial instruments are classified as FVTPL.
Derivative financial liabilities are initially recognised and measured at fair value on the date a derivative contract is entered into and then subsequently re-measured at fair value by reference to valuation models and the probability of outcome scenarios and categorised as Level 2 measurements.
Provisions: asset retirement obligation
Provisions for environmental restoration of mining operations are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the cash flows incorporate assessments of risk. The increase in the provision due to passage of time is recognised as an interest expense.
3. Critical accounting estimates and judgements
The preparation of the consolidated financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these judgements and estimates. The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions.
Significant accounting estimates and judgements
The following are significant accounting estimates and judgements that have a significant risk of a material change to the carrying value of assets and liabilities within the next financial year:
Impairment of non-current assets
The carrying value of the goodwill generated by accounting for the business combination of the Group acquiring an additional 40% in the Kounrad project in May 2014 (the Kounrad Transaction) requires an annual impairment review. The carrying values of property, plant and equipment are reviewed for impairment or impairment reversal if updated events or changes in circumstances indicate the carrying value has significantly changed. This review determines whether the value of the goodwill and property, plant and equipment can be justified by reference to the carrying value of the business assets and the future discounted cash flows of the respective CGUs. The key assumptions used in the Group's impairment assessments and sensitivity analysis are disclosed in Notes 19 and 20.
Any change to operational plans or assumptions or economic parameters could result in further impairment or impairment reversal if an indicator is identified.
Estimates are required periodically to assess assets for impairment. The critical accounting estimates are future commodity prices, treatment charges, future ore production, discount rates and projected future costs of development and production. Ore Reserves and resources included in the forecasts include certain resources considered to be sufficiently certain and economically viable. The Group's Mineral Resources Estimates include additional resources that are not included in the life of mine plan.
Decommissioning and site rehabilitation estimates
Provision is made for the costs of decommissioning and site rehabilitation costs (asset retirement obligation) when the related environmental disturbance takes place. The Group periodically appoints external expert consultants who conducted an independent assessment, and their judgement is used in determining the expected timing, closure and decommissioning methods, which can vary in response to changes in the relevant legal requirements or decommissioning technologies. Judgement is applied in determining appropriate contingency rates to cost estimates. Asset retirement obligations have been updated using latest assumptions on inflation rates and discount rates and revisions to the timing of close activities at Sasa driven primarily by an updated life-of-mine to 2034.
The discounted provision recognised represents management's best estimate of the costs that will be incurred, and many of these costs will not crystallise until the end of the life of the mine/operation. Estimates are reviewed annually and are based on current contractual and regulatory requirements and the estimated useful life of mine/operation. Engineering and feasibility studies are undertaken periodically and, in the interim, management make assessments for appropriate changes based on the environmental management strategy; however, significant changes in the estimates of contamination, restoration standards, timing of expenditure and techniques will result in changes to provisions from period to period.
The Group has performed a sensitivity analysis of reasonable possible changes in the significant assumptions taking into account historical experience; however, the estimates may vary by greater amounts. A 2% increase in the discount rate would result in an impact of $6,883,000 (2024: $5,070,000) on the provision for asset retirement obligation. A 2% increase in the inflation rate would result in an impact of $6,983,000 (2024: $6,160,000) on the provision for asset retirement obligation. A 20% increase in cost would result in an impact of $7,241,000 (2024: $3,751,000) on the provision for asset retirement obligation.
Mineral reserves and resources
The major value associated with the Group is the value of its mineral reserves and resources. The value of the reserves and resources has an impact on the Group's accounting estimates in relation to depreciation and amortisation, impairment of assets and the assessment of going concern. These resources are the Group's best estimate of product that can be economically and legally extracted from the relevant mining property.
The Group's estimates are supported by geological studies and drilling samples to determine the quantity and grade of each deposit. The Group estimates its mineral reserves and resources based on information compiled by Competent Persons as defined in accordance with the Joint Ore Reserves Committee (JORC) Code. The Kounrad resources were classified as JORC Compliant in 2013 and Mineral Resources were estimated in June 2017, and the Sasa JORC compliant Ore Reserves and Mineral Resources were estimated on 31 December 2025.
The estimation of mineral reserves and resources requires judgement to interpret available geological data to select an appropriate mining method. Estimation requires assumptions about future commodity prices, exchange rates, production costs, closure costs and discount rates. Mineral Resource and Ore Reserves Estimates may vary from period to period.
Silver stream commitment
The Group acquired a Silver Purchase Agreement as part of the acquisition of the CMK Group and inherited a silver stream commitment (Note 34) related to the production of silver during the life of the mine. The Group has agreed to sell to OR Royalties Inc. (formerly Osisko Gold Royalties Ltd) all its refined silver at approximately $6 per ounce for the life of the mine, significantly below market value.
The silver is produced by the Sasa mine as a by-product of the lead concentrate and, because Sasa does not operate a refining process, the silver is sold to smelters for further refining as part of the lead concentrate under a separate lead concentrate sales agreement. Consequently, all of the refined silver required to be delivered under the silver stream arrangement must therefore be sourced through purchases of silver on the open market.
Management has concluded that the Silver Purchase Agreement and the related open market silver purchases to fulfil the silver stream commitment were entered into and continue to be held for the purpose of the delivery of a non-financial item in accordance with the entity's expected sale requirements in accordance with IFRS 9, commonly referred to as the 'own use exemption'. The silver has effectively been presold to OR Royalties Inc. and consequently the contract is directly and solely linked to the mine's production which aligns with the own use exemption. Whilst the Group currently fulfils the contractual obligations through open market purchases of silver, this approach is purely logistical in nature as described above and does not alter the contractual terms of the contract. CAML's silver purchases are made back-to-back with the silver (refined from the lead concentrate) that is sold to the offtaker and therefore no material profit or loss is made and the Group is not exposed to fluctuations in the silver price and not exposed to risk. Therefore, the arrangement does not meet the definition of a derivative and is outside the scope of IFRS 9.
Climate change
As part of the Group's climate change strategy, the Company has committed to reduce our Scope 1 and 2 emissions GHG emission reduction targets for Kounrad and Sasa, aimed at reducing the carbon footprint and contributing to global climate change mitigation efforts. Beyond these near-term targets, the Group is committed to achieving emissions by 2050. This commitment is integrated into the Group's long-term business development decisions and supported by the ongoing development of scenario analysis using three scenarios; see Note 2. The preparation of the Group's financial information requires making judgements and estimates that may be influenced by climate change. The Group has identified three key areas where such impacts may arise:
Physical risks: The potential for extreme weather events and long-term shifts in climate patterns, which could affect the Group's operations and sustainability of the Group's assets.
Transition risks: The shift in demand between commodities and the influence of the Group's climate-related objectives, which may affect financial performance through changes in cost structures and operational decisions.
Climate targets: The financial implications of meeting climate-related goals and how these may influence estimates related to asset valuations and cost projections.
The Group calculates its provision for mine closure and rehabilitation by considering the current restoration requirements, practices, technologies and anticipated climate conditions. These closure cost estimates are based on studies conducted by external experts. Closure plans and associated costs are reviewed and updated on a regular basis, with an increasing focus on integrating projections of future climate conditions. Management actively monitors the potential risks and uncertainties associated with climate change and continually refines its approach to assessing its financial implications. As a result, the carrying values of assets and liabilities may be subject to change as management's assessments and forecasts evolve in response to emerging climate-related factors and the Group's long-term sustainability objectives.
Currently, the estimation of recoverable amounts for non-current assets represents the most significant judgement impacted by climate change. Further details on this estimate, along with additional considerations for other areas that may be affected in the medium to long term, are provided below:
Physical risk
The cash flow forecasts used to determine the recoverable amount of the Group's assets incorporate the Group's best estimate of the impact of material physical risks. The most significant physical risks relate to the management of water resources, with responsible extraction practices and efficient use of water resources and the potential challenges that could affect production levels.
Additionally, changing precipitation patterns, increased risk of wildfires and water stress may influence the cost of rehabilitating our sites, and are factored into the water management strategies as well as the tailings storage facilities. These factors have been considered in the Group's cash flow forecasts, reflecting the current best estimate of their potential impact. Based on the Group's risk assessments to date and the risk mitigation strategies in place, physical risks are not expected to materially affect the useful economic lives of the Group's assets.
Transition risk
Transition risks may affect the useful economic lives of the Group's mining properties, as changing commodity prices could extend or shorten the period during which resources can be economically extracted, thereby influencing depreciation charges. Additionally, a decline in commodity prices could lead to an impairment if the net realisable value of inventory falls below the cost of production. Transition risks could also impact the useful economic lives of the Group's operations, affecting the present value of rehabilitation and decommissioning provisions by altering the period over which future costs are discounted. Additional transitional risks include the global effort to transition to a low-carbon and sustainable society and economy, arising through policy and regulation, market shifts, technology and reputational impacts. However, after reviewing the sensitivity of these provisions to changing asset lives, the Group has concluded that this does not present a material estimation uncertainty. Technological advancements and innovations offer a pathway to reduce energy needs alongside CAML's exposure to emissions-related policy and regulation, potentially leading to reputational benefits.
Climate targets
The Group's climate-related target of achieving a 50% reduction in Scope 1 and Scope 2 emissions by 2030 has been integrated into the impairment assessment process, alongside considerations for the potential cost of future carbon taxes. This approach ensures that the financial impact of the Group's climate initiatives is reflected in asset valuations, aligning the Group's long-term climate objectives with the financial reporting of asset recoverability. By factoring in these climate-related considerations, the Group provides a comprehensive view of the potential risks and costs associated with meeting sustainability goals.
Tax
Management makes judgements in relation to the recognition of various taxes payable and receivable by the Group and VAT recoverability for which the recoverability and timing of recovery is assessed. The Group operates in jurisdictions which necessarily require judgements to be applied when assessing the applicable tax treatment for transactions, and the Group obtains professional advice where appropriate to ensure compliance with applicable legislation. To the extent that a final tax outcome is different from the amounts recorded, such differences will impact income tax in the period in which such determination is made.
Contingent consideration - Copper Bay disposal
As part of the disposal of Copper Bay, the Group is entitled to contingent consideration linked to future project milestones as outlined in Note 24. The consideration is dependent on the achievement and timing of specified copper production thresholds from assets that are not currently in production and are outside the Group's control. Determining the fair value therefore requires judgement in assessing the probability and timing of meeting those milestones and the appropriate discount rate to apply. Given the significant uncertainty surrounding the achievement of the specified conditions, management has assessed the fair value of the contingent consideration as nil as at 31 December 2025.
4. Financial instruments - risk management
The Group's activities expose it to a variety of financial risks: market price risk (including foreign currency exchange risk, commodity price risk and interest rate risk), liquidity risk, capital risk and credit risk. These risks are mitigated wherever possible by the Group's financial management policies and practices described below. The Group's risk management is carried out by a central treasury department (Group Treasury) under policies approved by the Board. Group Treasury identifies, evaluates and hedges financial risks in close co-operation with the Group's operating units.
Foreign currency exchange risk
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures. The primary Group currency requirements are US dollar, British pound, Kazakhstan tenge and North Macedonian denar, which is pegged to the euro. In December 2025, the Company put into place hedging arrangements comprising forward purchases of euro covering approximately 50% of Sasa's expected 2026 on-site cash operating costs, at an average exchange rate of $1.185 per euro.
The following table highlights the major currencies the Group operates in and the movements against the US dollar during the course of the year:
|
|
Average rate |
Reporting date spot rate |
|||||
|
|
2025 |
2024 |
Movement |
2025 |
2024 |
Movement |
|
|
Kazakhstan tenge |
521.03 |
468.96 |
+11% |
502.57 |
523.54 |
-4% |
|
|
Macedonian denar |
54.85 |
56.70 |
-3% |
52.31 |
58.88 |
-11% |
|
|
British pound |
0.76 |
0.78 |
-3% |
0.74 |
0.80 |
-8% |
|
Foreign exchange risk does not arise from financial instruments that are non-monetary items or financial instruments denominated in the functional currency. Kazakhstan tenge and North Macedonian denar denominated monetary items are therefore not reported in the tables below, as the functional currency of the Group's Kazakhstan-based and North Macedonian-based subsidiaries is the tenge and denar respectively.
The Group's exposure to foreign currency risk based on US dollar equivalent carrying amounts at the reported date:
|
|
Group |
||
|
|
2025 |
||
|
In $'000 equivalent |
USD |
EUR |
GBP |
|
Cash and cash equivalents |
9,450 |
1,241 |
7,655 |
|
Trade and other receivables |
- |
- |
25 |
|
Trade and other payables |
(258) |
(599) |
(4,508) |
|
Net exposure |
9,192 |
642 |
3,172 |
|
|
Group |
||
|
|
2024 |
||
|
In $'000 equivalent |
USD |
EUR |
GBP |
|
Cash and cash equivalents |
9,095 |
205 |
1,217 |
|
Trade and other receivables |
- |
- |
14 |
|
Trade and other payables |
(184) |
(580) |
(3,283) |
|
Net exposure |
8,911 |
(375) |
(2,052) |
Trade and other receivables exclude prepayments and tax receivable, and trade and other payables exclude corporation tax, social security and other taxes as they are not considered financial instruments.
At 31 December 2025, if the foreign currencies had weakened/strengthened by 10% against the US dollar, post-tax Group loss for the year would have been $1,301,000 higher/lower (2024 profit: $648,000 lower/higher).
Commodity price risk
In December 2025, the Company put into place hedging arrangements comprising forward sales for approximately 50% of Sasa's expected payable zinc in 2026, at an average price of $3,011.5 per tonne.
The offtake agreement at Kounrad and Sasa provides for the option of provisional pricing, ie the selling price is subject to final adjustment at the end of the quotation period based on the average price for the month following delivery to the buyer. This could result in fluctuations of revenue recognised ultimately. The Group may mitigate commodity price risk by fixing the price in advance for its copper cathode sales with the offtake partner; however, this option was not utilised during the year and the prior year.
The following table details the Group's revenue sensitivity to a 10% increase and decrease in the copper, zinc and lead price against the invoiced price. 10% is the sensitivity used when reporting commodity price internally to management and represents management's assessment of the possible change in price. A positive number below indicates an increase in profit for the year and other equity where the price increases.
|
|
Group |
|
|
|
Estimated effect on earnings and equity |
|
|
|
2025 |
2024 |
|
10% increase in copper, zinc and lead price |
22,288 |
22,033 |
|
10% decrease in copper, zinc and lead price |
(22,288) |
(22,033) |
Liquidity risk
Liquidity risk relates to the ability of the Group to meet future obligations and financial liabilities as and when they fall due. The Group currently has sufficient cash resources and a material income stream from the Kounrad and Sasa projects.
The following table sets out the contractual maturities (representing undiscounted contractual cash flows) of financial liabilities.
|
|
Group |
|
|
Future expected payments: |
31 Dec 25 |
31 Dec 24 |
|
Trade and other payables within one year |
15,138 |
13,191 |
|
Share-based payment liability within one year |
11,984 |
8,635 |
|
Borrowings payable within one year (Note 35) |
936 |
252 |
|
Lease liability payable within one year |
591 |
496 |
|
Lease liability payable later than one year but not later than five years |
1,188 |
1,138 |
|
Share-based payment liability later than one year but not later than five years |
2,610 |
2,291 |
|
|
32,447 |
26,003 |
Capital risk
The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal structure to reduce the cost of capital.
The Group manages its capital in order to provide sufficient funds for the Group's activities. Future capital requirements are regularly assessed and Board decisions taken as to the most appropriate source for obtaining the required funds, be it through internal revenue streams, external fund raising, issuing new shares or selling assets. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Group monitors capital on the basis of the following gearing ratio:
Net cash
|
|
Note |
2025 |
2024 (restated)* |
1 Jan 2024 (restated)* |
|
Cash and cash equivalents excluding restricted cash |
28 |
79,673 |
67,318 |
56,832 |
|
Bank overdraft |
35 |
(936) |
(252) |
(326) |
|
Net cash |
|
78,737 |
67,066 |
56,506 |
|
Total equity |
|
284,226 |
355,307 |
370,644 |
|
Net cash to equity ratio |
|
28% |
19% |
15% |
* See Note 43 for details regarding the prior year restatement.
Changes in liabilities arising from financing activities
The total borrowings as at 1 January 2025 were $252,000 (1 January 2024: $326,000). During the year, the Group drew down $20,463,000 (2024: $3,563,000) on its unsecured overdrafts facility and made repayments of $19,841,000 (2024: $3,621,000). Other changes amounted to an increase of $62,000 (2024: reduction of $16,000) leading to a closing debt balance of $936,000 (2024: $252,000). See Note 35 for more details.
The cash and cash equivalents brought forward were $67,378,000 (2024: $56,906,000) with a net $12,295,000 inflow (2024: $10,472,000 outflow) during the year and, therefore, a closing balance of $79,673,000 (2024: $67,378,000). The prior year cash and cash equivalents at 31 December 2024 includes cash at bank and on hand, included in assets held for sale of $60,000 (Note 24).
Credit risk
Credit risk refers to the risk that the Group's financial assets will be impaired by the default of a third party. The Group is exposed to credit risk primarily on its cash and cash equivalents as set out in Note 28 and on its trade and other receivables as set out in Note 25. The Group sells a minimum of 95% of Kounrad's copper cathode production to the offtake partner, which pays on the day of dispatch and, during the year, 100% of Sasa's zinc and lead concentrate was sold to Traxys which assumes the credit risk.
For banks and financial institutions, only parties with a minimum rating of BBB- are accepted. 86% of the Group's cash and cash equivalents, including restricted cash at the year end, were held by banks with a minimum credit rating of A- (2024: 85%). The rest of the Group's cash was held with a mix of institutions with credit ratings between A+ and BBB- (2024: A and BBB-). The Directors have considered the credit exposures and do not consider that they pose a material risk at the present time. The credit risk for cash and cash equivalents is managed by ensuring that all surplus funds are deposited only with financial institutions with high-quality credit ratings.
The expected credit loss for intercompany loans receivable is disclosed in Note 26.
Interest rate risk
The Group's North Macedonian bank overdrafts denominated in euros are payable at fixed interest rates ranging from 3.24% to 5.30%. Interest paid during the year amounted to $99,000 (2024: $20,000).
There is some interest rate risk exposure linked to US dollar interest-earning bank balances with variable rates. At 31 December 2025, if interest rates on variable interest earning US dollar bank balances had been 150 basis points higher/lower, loss after tax for the year would have been $855,000 lower/higher (2024 profit: $677,000 higher/lower). The Directors consider that 150 basis points is the maximum likely change in interest rates over the next year, being the period up to the next point at which the Group expects to make these disclosures.
Categories of financial instruments
Financial assets
|
|
Group |
|
|
Cash and receivables |
31 Dec 25 |
31 Dec 24 |
|
Cash and cash equivalents including restricted cash (Note 28) |
80,069 |
67,645 |
|
Trade and other receivables |
2,174 |
2,329 |
|
|
82,243 |
69,974 |
Trade and other receivables excludes prepayments and tax receivable as they are not considered financial instruments. All trade and other receivables are receivable within one year for both reporting years.
Financial liabilities
|
|
Group |
|
|
Measured at amortised cost |
31 Dec 25 $'000 |
31 Dec 24 $'000 |
|
Trade and other payables within one year |
15,138 |
13,191 |
|
Borrowings payable within one year (Note 35) |
936 |
252 |
|
Share-based payment liability within one year |
11,984 |
8,635 |
|
Lease liability within one year |
514 |
414 |
|
Lease liability payable later than one year but not later than five years |
715 |
1,056 |
|
Share-based payment liability later than one year but not later than five years |
2,610 |
2,291 |
|
|
31,897 |
25,839 |
Trade and other payables exclude the silver stream commitment, corporation tax, social security and other taxes as they are not considered financial instruments.
5. Segment information
The segment results for the year ended 31 December 2025 are as follows:
|
|
Kounrad |
Sasa |
Exploration |
All other segments |
Total |
|
Revenue |
129,734 |
100,126 |
- |
- |
229,860 |
|
Cost of sales |
(33,004) |
(90,961) |
- |
- |
(123,965) |
|
|
|
|
|
|
|
|
EBITDA |
97,341 |
25,722 |
(1,377) |
(19,888) |
101,798 |
|
Depreciation and amortisation |
(4,100) |
(25,782) |
(46) |
(422) |
(30,350) |
|
Foreign exchange (loss)/gain |
(2,920) |
(1,156) |
174 |
(314) |
(4,216) |
|
Impairment of non-current assets |
- |
(117,469) |
(296) |
- |
(117,765) |
|
Other income |
260 |
582 |
3 |
1,576 |
2,421 |
|
Other losses |
(4) |
(12) |
(7) |
(1,456) |
(1,479) |
|
Fair value movement of share-based payment liability |
- |
- |
- |
(7,955) |
(7,955) |
|
Finance income |
16 |
- |
- |
1,776 |
1,792 |
|
Finance costs |
(456) |
(2,073) |
- |
(83) |
(2,612) |
|
Share of post-tax loss of investment in equity accounted associate |
- |
- |
- |
(140) |
(140) |
|
Profit/(loss) before income tax |
90,137 |
(120,188) |
(1,549) |
(26,906) |
(58,506) |
|
Income tax |
(25,534) |
9,356 |
- |
- |
(16,178) |
|
Profit/(loss) for the year after tax from continuing operations |
64,603 |
(110,832) |
(1,549) |
(26,906) |
(74,684) |
|
Loss from discontinued operations |
|
|
|
|
(474) |
|
Loss for the year |
|
|
|
|
(75,158) |
The segment results for the year ended 31 December 2024 are as follows:
|
|
Kounrad (restated)* |
Sasa |
Exploration |
All other segments |
Total (restated)* |
|
Revenue |
121,783 |
92,658 |
- |
- |
214,441 |
|
Cost of sales |
(33,423) |
(74,844) |
- |
- |
(108,267) |
|
|
|
|
|
|
|
|
EBITDA |
89,346 |
32,248 |
(983) |
(18,258) |
102,353 |
|
Depreciation and amortisation |
(4,493) |
(22,140) |
(35) |
(420) |
(27,088) |
|
Foreign exchange gain/(loss) |
5,634 |
157 |
(137) |
(16) |
5,638 |
|
Other income |
523 |
4 |
- |
336 |
863 |
|
Other losses |
(128) |
(519) |
(1) |
(4) |
(652) |
|
Fair value movement of share-based payment liability |
- |
- |
- |
(3,966) |
(3,966) |
|
Finance income |
14 |
- |
- |
2,350 |
2,364 |
|
Finance costs |
(468) |
(1,626) |
- |
(98) |
(2,192) |
|
Share of post-tax loss of investment in equity accounted associate |
- |
- |
- |
(76) |
(76) |
|
Profit/(loss) before income tax |
90,428 |
8,124 |
(1,156) |
(20,152) |
77,244 |
|
Income tax |
(23,934) |
(1,962) |
- |
- |
(25,896) |
|
Profit/(loss) for the year after tax from continuing operations |
66,494 |
6,162 |
(1,156) |
(20,152) |
51,348 |
|
Loss from discontinued operations |
|
|
|
|
(183) |
|
Profit for the year |
|
|
|
|
51,165 |
* See Note 43 for details regarding the prior year restatement.
A reconciliation between profit/loss for the year and EBITDA is presented in the Financial Review section.
Group segment assets and liabilities for the year ended 31 December 2025 are as follows:
|
|
Segment assets |
Additions to |
Segment liabilities |
|||
|
|
31 Dec 25 |
31 Dec 24 (restated)* |
31 Dec 25 |
31 Dec 24 |
31 Dec 25 |
31 Dec 24 |
|
Kounrad |
73,340 |
64,744 |
4,658 |
2,952 |
(21,109) |
(15,919) |
|
Sasa |
234,811 |
315,012 |
19,050 |
24,444 |
(55,890) |
(54,342) |
|
Exploration |
1,777 |
581 |
1,251 |
240 |
(131) |
(114) |
|
Investment in equity accounted associate |
3,635 |
3,775 |
- |
- |
- |
- |
|
Assets classified as held for sale |
- |
61 |
- |
- |
- |
(24) |
|
All other segments |
71,246 |
59,714 |
7 |
28 |
(23,453) |
(18,181) |
|
|
384,809 |
443,887 |
24,966 |
27,664 |
(100,583) |
(88,580) |
* See Note 43 for details regarding the prior year restatement.
6. Revenue
|
Group |
2025 |
2024 |
|
International customers (Europe) - copper cathode |
132,759 |
124,757 |
|
International customers (Europe) - zinc and lead concentrate (including silver by-product) |
98,527 |
91,328 |
|
Domestic customers (Kazakhstan) - copper cathode |
208 |
- |
|
International customers (Europe) - silver stream arrangement |
2,527 |
2,285 |
|
Less: Offtake buyers' fees |
(4,161) |
(3,929) |
|
Revenue |
229,860 |
214,441 |
Kounrad
The Group sells and distributes its copper cathode product primarily through an offtake arrangement with Traxys. The offtake arrangements are for a minimum of 95% of the SX-EW plant's output going forward, the commitment will be 90%. Revenue is recognised at the Kounrad site gate when the goods have been delivered in accordance with the contractual delivery terms.
The offtake agreement provides for the option of provisional pricing, ie the selling price is subject to final adjustment at the end of the quotation period based on the average price for the month following delivery to the buyer. The Group may mitigate commodity price risk by fixing the price in advance for its copper cathode sales with the offtake partner.
The costs of delivery to the end customers have been effectively borne by the Group through means of an annually agreed buyers' fee, which is deducted from the selling price.
During 2025, the Group sold 13,122 tonnes (2024: 13,521 tonnes) of copper.
Sasa
The Group sells Sasa's zinc and lead concentrate product to smelters through an offtake arrangement with Traxys. The commitment is for 100% of the Sasa concentrate production. The agreements with the smelters provide for provisional pricing, ie. the selling price is subject to final adjustment at the end of the quotation period based on the average price for the month, two months or three months following delivery to the buyer and subject to final adjustment for assaying results.
The Group sold 14,961 tonnes (2024: 15,839 tonnes) of payable zinc in concentrate and 23,898 tonnes (2024: 25,560 tonnes) of payable lead in concentrate.
The revenue arising from the silver stream arrangement with OR Royalties Inc. (formerly Osisko Gold Royalties Ltd) is where the Group has agreed to sell all of its refined silver at approximately $6 per ounce for the life of the mine, significantly below market value and arising from the silver stream commitment inherited on acquisition (Note 34).
7. Cost of sales
|
Group |
2025 |
2024 (restated)* |
|
Reagents, electricity and materials |
30,368 |
29,545 |
|
Depreciation and amortisation |
29,416 |
26,269 |
|
Silver stream commitment (Note 34) |
(1,028) |
(984) |
|
Royalties |
16,238 |
12,722 |
|
Employee benefit expense |
25,620 |
23,102 |
|
Open market silver purchases to fulfil silver stream commitment |
14,227 |
10,055 |
|
Consulting and other services |
8,615 |
6,976 |
|
Taxes and duties |
509 |
582 |
|
|
123,965 |
108,267 |
* See Note 43 for details regarding the prior year restatement.
8. Distribution and selling costs
|
Group |
2025 |
2024 |
|
Freight costs |
1,918 |
1,856 |
|
Transportation costs |
28 |
26 |
|
Depreciation and amortisation |
1 |
1 |
|
Materials and other forwarding expenses |
348 |
259 |
|
|
2,295 |
2,142 |
The above distribution and selling costs are those incurred at Kounrad and Sasa in addition to the costs associated with the offtake arrangements.
9. Administrative expenses
|
Group |
2025 |
2024 |
|
Employee benefit expense |
14,011 |
13,569 |
|
Consulting and other services |
8,141 |
7,259 |
|
Business development costs |
3,553 |
2,004 |
|
Office-related and travel costs |
2,104 |
1,815 |
|
Sponsorship and charitable donations |
1,236 |
1,320 |
|
Insurance costs |
989 |
931 |
|
Depreciation and amortisation |
933 |
818 |
|
Auditors' remuneration (Note 12) |
809 |
707 |
|
Taxes and duties |
376 |
344 |
|
Total from continuing operations |
32,152 |
28,767 |
|
Total from discontinued operations (Note 24) |
45 |
162 |
|
|
32,197 |
28,929 |
10. Other income
|
Group |
2025 |
2024 |
|
Break fee related to NWR (Note 23) |
1,600 |
- |
|
Other income |
821 |
527 |
|
Changes in the fair value of the warrants at FVTPL (Note 22) |
- |
336 |
|
|
2,421 |
863 |
11. Other losses
|
Group |
2025 |
2024 |
|
Losses on financial derivatives |
1,179 |
- |
|
Changes in the fair value of the warrants at FVTPL (Note 22) |
277 |
- |
|
Other losses |
23 |
652 |
|
|
1,479 |
652 |
In December 2025, the Group entered into hedging arrangements to manage the Group's commodity price and foreign exchange risk. The derivative financial instruments are classified as FVTPL.
12. Auditors' remuneration
During the year, the Group obtained the following services from the Company's Auditor and their associates:
|
Group |
2025 |
2024 |
|
Fees payable to BDO LLP the Company's Auditors for the audit of the parent company and consolidated financial statements |
457 |
373 |
|
Fees payable to BDO LLP the Company's Auditor and their associates for the audit of the Company's subsidiaries: ‣ The audit of Company's subsidiaries |
256 |
240 |
|
Fees payable to BDO LLP the Company's Auditor and their associates for other services: ‣ Audit-related services: Interim review |
84 |
74 |
|
‣ Non-audit services |
12 |
20 |
|
|
809 |
707 |
13. Employee benefit expense
The aggregate remuneration of staff, including Directors, was as follows:
|
Group |
2025 |
2024 |
|
Wages and salaries |
28,759 |
27,110 |
|
Social security costs and similar taxes |
4,343 |
3,624 |
|
Staff healthcare and other benefits |
4,041 |
3,890 |
|
Other pension costs |
4,961 |
4,545 |
|
Fair value movement of share-based payment liability |
7,955 |
3,966 |
|
Total for continuing operations |
50,059 |
43,135 |
|
Total for discontinuing operations |
19 |
75 |
|
|
50,078 |
43,210 |
The total employee benefit expense includes an amount of $2,473,000 (2024: $2,497,000), which has been capitalised within property, plant and equipment.
|
Company |
2025 |
2024 |
|
Wages and salaries |
7,025 |
7,396 |
|
Social security costs |
1,965 |
1,532 |
|
Staff healthcare and other benefits |
218 |
201 |
|
Other pension costs |
181 |
165 |
|
Fair value movement of share-based payment liability |
7,955 |
3,966 |
|
|
17,344 |
13,260 |
Key management remuneration is disclosed in the Remuneration Committee Report.
14. Monthly average number of people employed
|
Group |
2025 |
2024 |
|
Operational |
974 |
969 |
|
Management and administrative |
192 |
190 |
|
|
1,166 |
1,159 |
The monthly average number of staff employed by the Company during the year was 20 (2024: 21).
15. Finance income
|
Group |
2025 |
2024 |
|
Bank interest received |
1,792 |
2,364 |
|
|
1,792 |
2,364 |
16. Finance costs
|
Group |
2025 |
2024 |
|
Provisions: unwinding of discount (Note 36) |
2,347 |
2,020 |
|
Employee benefits: unwinding of discount (Note 32) |
26 |
- |
|
Interest on borrowings (Note 35) |
99 |
20 |
|
Lease interest expense and bank charges |
140 |
152 |
|
|
2,612 |
2,192 |
17. Income tax
|
Group |
2025 |
2024 |
|
Current tax on profits for the year |
21,142 |
22,014 |
|
Withholding tax on intercompany dividend distributions |
5,977 |
5,145 |
|
Deferred tax credit (Note 41) |
(10,941) |
(1,263) |
|
Income tax expense |
16,178 |
25,896 |
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax applied to profits for the year are as follows:
|
Group |
2025 |
2024 (restated)* |
|
(Loss)/profit before income tax |
(58,506) |
77,244 |
|
Tax using the Company's domestic tax rate of 25% (2024: 25%) |
(14,626) |
19,311 |
|
Tax effects of: |
|
|
|
Expenses not deductible for tax purposes |
8,674 |
4,841 |
|
Withholding tax on intercompany dividend distributions |
5,977 |
5,145 |
|
Different tax rates applied in overseas jurisdictions |
12,640 |
(3,839) |
|
Movement on unrecognised deferred tax - tax losses |
3,513 |
438 |
|
Income tax expense |
16,178 |
25,896 |
* See Note 43 for details regarding the prior year restatement.
Corporate income tax is calculated at 25% (2024: 25%) of the assessable profit for the year for the UK parent company, 20% for the operating subsidiaries in Kazakhstan (2024: 20%) and 10% (2024: 10%) for the operating subsidiaries in North Macedonia. From 1 January 2026, new legislation introduced in Kazakhstan has increased withholding tax on intercompany dividends from 10% to 15%.
Expenses not deductible for tax purposes include share-based payment charges, transfer pricing adjustments in accordance with local tax legislation, impairment and depreciation and amortisation charges.
There is no income tax relating to items recognised in other comprehensive income.
Deferred tax assets have not been recognised on tax losses primarily at the parent company as it remains uncertain whether this entity will have sufficient taxable profits in the future to utilise these losses (Note 41).
18. Earnings/(loss) per share
(a) Basic
Basic earnings/(loss) per share (EPS) is calculated by dividing the profit/(loss) attributable to owners of the Company by the weighted average number of Ordinary Shares in issue during the year. The calculation excludes Ordinary Shares purchased by the Company and held as treasury shares and the Ordinary Shares held by the EBT, except for jointly owned EBT shares which are included (Note 29).
|
Group |
2025 |
2024 (restated)* |
|
(Loss)/profit from continuing operations attributable to owners of the parent |
(74,580) |
51,579 |
|
Loss from discontinued operations attributable to owners of the parent |
(474) |
(183) |
|
(Loss)/profit attributable to owners of the parent |
(75,054) |
51,396 |
|
|
2025 |
2024 |
|
Weighted average number of Ordinary Shares in issue |
176,341,692 |
176,645,177 |
|
|
2025 |
2024 (restated)* |
|
(Loss)/earnings per share from continuing and discontinued operations attributable to owners of the parent during the year (expressed in $ cents per share) |
|
|
|
From continuing operations |
(42.29) |
29.20 |
|
From discontinued operations |
(0.27) |
(0.10) |
|
From (loss)/profit for the year |
(42.56) |
29.10 |
* See Note 43 for details regarding the prior year restatement.
b) Diluted
The diluted earnings/(loss) per share is calculated by adjusting the weighted average number of Ordinary Shares outstanding after assuming the conversion of all outstanding granted share options including the amount of additional share options for dividends declared on those outstanding (Note 31). Additionally, for share-based payment arrangements classified as cash-settled under IFRS 2, the theoretical impact on profit attributable to owners of the parent is also considered as if the arrangements were treated as equity-settled. For the year ended 31 December 2025, the Group reported a loss. In accordance with IAS 33, anti-dilutive potential Ordinary Shares are excluded from the calculation of diluted earnings per share. Accordingly, diluted loss per share is the same as basic loss per share for the year.
|
Group |
2025 |
2024 (restated)* |
|
(Loss)/profit from continuing operations attributable to owners of the parent |
(74,580) |
51,579 |
|
Loss from discontinued operations attributable to owners of the parent |
(474) |
(183) |
|
(Loss)/profit attributable to owners of the parent |
(75,054) |
51,396 |
|
Adjusted for: ‣ Adjustment to profit if share options were equity-settled |
- |
(1,019) |
|
(Loss)/profit attributable to owners of the parent for diluted EPS |
(75,054) |
50,377 |
If the share-based payment arrangements classified as cash-settled under IFRS 2 had been treated as equity-settled for the purposes of diluted EPS, profit attributable to owners of the parent would have increased by $3,460,000 (2024: decreased by $1,019,000). This adjustment has not been reflected in diluted loss per share for 2025 as it would have been anti-dilutive in accordance with IAS 33.
|
|
2025 |
2024 |
|
Weighted average number of Ordinary Shares in issue |
176,341,692 |
176,645,177 |
|
Adjusted for: |
|
|
|
‣ Share options |
- |
9,013,024 |
|
Weighted average number of Ordinary Shares for diluted EPS |
176,341,692 |
185,658,201 |
At 31 December 2025, the Group had 9,876,926 share options outstanding which were excluded from the calculation of diluted loss per share as their inclusion would have been anti-dilutive.
|
Diluted (loss)/earnings per share |
2025 |
2024 |
|
From continuing operations |
(42.29) |
27.24 |
|
From discontinued operations |
(0.27) |
(0.10) |
|
From (loss)/profit for the year |
(42.56) |
27.14 |
* See Note 43 for details regarding the prior year restatement.
c) Adjusted basis earnings per share
To allow comparability, the Directors believe that the Adjusted EPS provides a more appropriate representation of the underlying earnings of the Group, adjusting for the impairment of non-current assets and the corresponding deferred tax movement arising from the impairment of mineral rights and the losses on financial derivatives.
The adjusting items are shown in the table below:
|
Group |
2025 |
2024 (restated)* |
|
(Loss)/profit from continuing operations attributable to owners of the parent |
(74,580) |
51,579 |
|
Adjusted for: |
|
|
|
‣ Impairment of non-current assets |
117,765 |
- |
|
‣ Losses on financial derivatives |
1,179 |
- |
|
‣ Deferred tax movement resulting from impairment of mineral rights |
(11,241) |
- |
|
Adjusted profit from continuing operations attributable to owners of the parent |
33,123 |
51,579 |
|
Loss from discontinued operations attributable to owners of the parent |
(474) |
(183) |
|
Adjusted profit attributable to owners of the parent |
32,649 |
51,396 |
|
|
2025 |
2024 (restated)* |
|
Adjusted earnings/(loss) per share from continuing and discontinued operations attributable to owners of the parent during the year (expressed in $ cents per share) |
|
|
|
From adjusted continuing operations |
18.78 |
29.20 |
|
From discontinued operations |
(0.27) |
(0.10) |
|
From adjusted profit for the year |
18.51 |
29.10 |
* See Note 43 for details regarding the prior year restatement.
d) Adjusted diluted earnings per share
|
Group |
2025 |
2024 (restated)* |
|
Adjusted profit from continuing operations attributable to owners of the parent |
33,123 |
51,579 |
|
Loss from discontinued operations attributable to owners of the parent |
(474) |
(183) |
|
Adjusted profit attributable to owners of the parent |
32,649 |
51,396 |
|
Adjusted for: ‣ Adjustment to profit if share options were equity-settled |
3,460 |
(1,019) |
|
(Loss)/profit attributable to owners of the parent for diluted EPS |
36,109 |
50,377 |
|
|
2025 |
2024 |
|
Weighted average number of Ordinary Shares in issue |
176,341,692 |
176,645,177 |
|
Adjusted for: |
|
|
|
‣ Share options |
9,876,926 |
9,013,024 |
|
Weighted average number of Ordinary Shares for diluted EPS |
186,218,618 |
185,658,201 |
|
|
2025 |
2024 (restated)* |
|
Adjusted diluted earnings/(loss) per share |
|
|
|
From adjusted continuing operations |
19.65 |
29.20 |
|
From discontinued operations |
(0.27) |
(0.10) |
|
From adjusted profit for the year |
19.38 |
29.10 |
* See Note 43 for details regarding the prior year restatement.
19. Property, plant and equipment
|
Group |
Land |
Mineral |
Property, plant and equipment $'000 |
Construction in progress $'000 |
ROU |
Mining |
Total |
|
Cost |
|
|
|
|
|
|
|
|
At 1 January 2024 |
612 |
337,290 |
202,385 |
13,038 |
2,078 |
1,197 |
556,600 |
|
Additions |
- |
- |
420 |
26,786 |
- |
- |
27,206 |
|
Disposals |
- |
- |
(247) |
- |
(4) |
(1) |
(252) |
|
Change in estimate - asset retirement obligation (Note 36) |
- |
- |
(576) |
- |
- |
- |
(576) |
|
Transfers |
- |
- |
12,650 |
(12,866) |
216 |
- |
- |
|
Exchange differences |
(34) |
(10,920) |
(11,425) |
(1,239) |
(13) |
(158) |
(23,789) |
|
At 31 December 2024 |
578 |
326,370 |
203,207 |
25,719 |
2,277 |
1,038 |
559,189 |
|
Additions |
- |
- |
440 |
21,827 |
- |
992 |
23,259 |
|
Disposals |
- |
- |
(272) |
- |
- |
- |
(272) |
|
Change in estimate - asset retirement obligation (Note 36) |
- |
- |
6,863 |
- |
- |
- |
6,863 |
|
Transfers |
- |
- |
36,619 |
(36,716) |
97 |
- |
- |
|
Exchange differences |
73 |
22,350 |
12,613 |
2,352 |
33 |
80 |
37,501 |
|
At 31 December 2025 |
651 |
348,720 |
259,470 |
13,182 |
2,407 |
2,110 |
626,540 |
|
Accumulated depreciation |
|
|
|
|
|
|
|
|
At 1 January 2024 |
- |
131,612 |
85,642 |
- |
544 |
681 |
218,479 |
|
Provided during the year |
- |
10,685 |
14,440 |
- |
397 |
39 |
25,561 |
|
Disposals |
- |
- |
(177) |
- |
- |
- |
(177) |
|
Exchange differences |
- |
- |
(3,324) |
- |
- |
(94) |
(3,418) |
|
At 31 December 2024 |
- |
142,297 |
96,581 |
- |
941 |
626 |
240,445 |
|
Provided during the year |
- |
11,210 |
17,328 |
- |
433 |
27 |
28,998 |
|
Disposals |
- |
- |
(224) |
- |
- |
- |
(224) |
|
Impairment |
- |
117,469 |
- |
- |
- |
- |
117,469 |
|
Exchange differences |
- |
- |
1,035 |
- |
- |
27 |
1,062 |
|
At 31 December 2025 |
- |
270,976 |
114,720 |
- |
1,374 |
680 |
387,750 |
|
Net book value at 31 December 2024 |
578 |
184,073 |
106,626 |
25,719 |
1,336 |
412 |
318,744 |
|
Net book value at 31 December 2025 |
651 |
77,744 |
144,750 |
13,182 |
1,033 |
1,430 |
238,790 |
The increase in estimate in the asset retirement obligation of $6,863,000 (2024: decrease of $576,000), in relation to both Kounrad and Sasa, is due to a combination of adjusting the provision recognised at the net present value of future expected costs using latest assumptions on inflation rates and discount rates as well as updating the provision for management's best estimate of the timing of costs that will be incurred based on current contractual and regulatory requirements (Note 36).
During the year, there were total disposals of property, plant and equipment at a cost of $272,000 (2024: $252,000) with accumulated depreciation of $224,000 (2024: $177,000). The Group received consideration of $84,000 (2024: $66,000) for these assets and, therefore, a gain of $36,000 was recognised (2024: loss of $9,000).
The Company held the following property, plant and equipment at 31 December 2025:
|
|
ROU and property, plant and equipment |
|
|||
|
Company |
Leasehold improvements |
Right-of-use assets |
Office equipment |
Total |
|
|
Cost |
|
|
|
|
|
|
At 1 January 2024 |
347 |
1,516 |
238 |
2,101 |
|
|
Additions |
- |
- |
28 |
28 |
|
|
Disposals |
- |
(4) |
(34) |
(38) |
|
|
At 31 December 2024 |
347 |
1,512 |
232 |
2,091 |
|
|
Additions |
- |
- |
7 |
7 |
|
|
Disposals |
- |
- |
(8) |
(8) |
|
|
At 31 December 2025 |
347 |
1,512 |
231 |
2,090 |
|
|
Accumulated depreciation |
|
|
|
|
|
|
At 1 January 2024 |
17 |
144 |
89 |
250 |
|
|
Provided during the year |
69 |
306 |
46 |
421 |
|
|
Disposals |
- |
- |
(30) |
(30) |
|
|
At 31 December 2024 |
86 |
450 |
105 |
641 |
|
|
Provided during the year |
69 |
306 |
47 |
422 |
|
|
Disposals |
- |
- |
(8) |
(8) |
|
|
At 31 December 2025 |
155 |
756 |
144 |
1,055 |
|
|
Net book value at 31 December 2024 |
261 |
1,062 |
127 |
1,450 |
|
|
Net book value at 31 December 2025 |
192 |
756 |
87 |
1,035 |
|
Amounts recognised in the income statement
The income statement shows the following amounts relating to leases - depreciation charge right-of-use assets:
|
Group depreciation charge of right-of-use assets |
2025 |
2024 |
|
Office |
342 |
342 |
|
Other |
91 |
55 |
|
Total depreciation |
433 |
397 |
|
Interest expense included in finance costs |
89 |
106 |
Impairment assessment
In accordance with IAS 36 Impairment of Assets a review for impairment of property, plant and equipment is undertaken at each year end or at any time an indicator of impairment is considered to exist. When undertaken, an impairment review is completed for each cash-generating unit (CGU).
The recoverable amount of the CGU is assessed by reference to the higher of value in use (VIU), being the net present value (NPV) of future cash flows expected to be generated by the asset, and fair value less costs to dispose (FVLCD). The FVLCD is considered to be higher than VIU and has been derived using discounted cash flow techniques (NPV of expected future cash flows of a CGU), which incorporate market participant assumptions. Cost to dispose is based on management's best estimates of future selling costs at the time of calculating FVLCD. Costs attributable to the disposal of the CGU's are not considered significant. The methodology used for the fair value is a Level 3 valuation.
The discount rate applied to calculate the present value is based upon the nominal weighted average cost of capital applicable to the CGU. The discount rate reflects equity risk premiums over the risk-free rate, the impact of the remaining economic life of the CGU and the risks associated with the relevant cash flows based on the country in which the CGU is located. These risk adjustments are based on observed equity risk premiums, country risk premiums and average credit default swap spreads for the period.
The valuation models use a combination of internal sources and those inputs available to a market participant, which comprise the most recent reserve and resource estimates, relevant cost assumptions and, where possible, market forecasts of commodity price and foreign exchange rate assumptions and discount rates.
Sasa project
The Sasa project represents a single CGU and comprises mineral rights and property, plant and equipment. Goodwill attributable to the Sasa CGU has been fully impaired in prior periods and therefore no goodwill impairment or reversal has been considered in the current year.
In accordance with IAS 36, the Group assessed the Sasa CGU for indicators of impairment as at 31 December 2025. The assessment considered changes in forecast commodity prices, treatment charges, operating and capital expenditure, discount rates, foreign exchange rates and updated mineral reserve and resource estimates.
At year end, management identified indicators of impairment following completion of the updated life-of-mine (LoM) study. The study, completed at year end, resulted in a reduction in economically recoverable Mineral Resources and Ore Reserves and a shortening of the LoM. As a result, management performed a detailed impairment assessment. The recoverable amount of the Sasa CGU was determined using a fair value less costs of disposal (FVLCD) methodology based on discounted future cash flows derived from the updated life-of-mine plan. It has used quoted prices (Level 1) inputs for its commodity price assumptions, inflation rates, exchange rates and discount rate. The valuation also incorporates significant observable and unobservable inputs, including Mineral Resources and Ore Reserves, long-term commodity price assumptions, operating and capital cost forecasts and a risk-adjusted discount rate. Accordingly, the fair value measurement is categorised as Level 3 within the IFRS 13 fair value hierarchy. At the balance sheet date, the Board considers the base case forecasts to be appropriate and balance best estimates.
The cash flow forecasts were based on projected production volumes, broker consensus commodity prices for the near-term period with long-term prices applied thereafter, forecast treatment charges, operating costs and capital expenditure. The discounted cash flow model included Probable Reserves and Indicated Resources, together with a limited portion of Inferred Resources that were considered sufficiently certain and economically viable for inclusion. Mineralisation not included within the production schedule has been assigned a separate in-situ value, reflecting its potential future economic benefit without assuming development or extraction within the current mine plan. The forecast operating and capital expenditure reflected the current mining plan and production profile. Climate-related risks were also considered, including potential regulatory changes and physical risks to the asset, and their impact on asset retirement obligations.
The following key assumptions were used in determining the recoverable amount of the Sasa CGU:
‣ Discount rate of 9.95% (31 December 2024: 10.28%) supported by a detailed WACC calculation and applied to discount projected cash flows.
‣ Zinc price: Five-year average nominal zinc price of $2,993 per tonne (2024: $2,964) and a long-term nominal price of $3,366 per tonne, based on market consensus.
‣ Lead price: Five-year average nominal lead price of $2,132 per tonne (2024: $2,218) and a long-term nominal price of $2,353 per tonne, based on market consensus.
‣ Life-of-mine and reserves: Life-of-mine shortened from 2039 to 2034, with production based on Reserves, and a limited portion of Inferred Resources included where economically viable. Mineralisation not included in the production plan has been assigned a separate in-situ value, reflecting potential future economic benefit without assuming development or extraction within the current mine plan.
Other inputs, including lead prices, treatment charges, capital expenditure and minor inflation assumptions, were included in the cash flow model but are less sensitive to the recoverable amount.
An impairment charge was recognised during the year as a result of the following key factors:
‣ Completion of the updated LoM study, in which Resources and Reserves are reported using Net Smelter Return (NSR) cut-off values, resulting in a reduction in economically viable Resources.
‣ Increased forecast operating costs, particularly new mining methods and labour, reflecting current inflationary pressures and market-based inflation assumptions.
‣ Removal of Indicated Resources and approximately 30% of Inferred Resources at Golema Reka from the LoM plan, as these resources do not currently meet the required level of confidence for economically viable extraction thereby significantly reducing the LoM plan to 2034.
As a result of these factors, the carrying value of the Sasa CGU exceeded its recoverable amount and an impairment charge of $117,469,000 was recognised in the year. The recoverable amount remains sensitive to changes in key assumptions and certain parameters were flexed upwards and downwards by reasonable amounts for the CGU to assess whether this would increase the impairment charge or reduce the impairment. The following sensitivities were applied as part of the assessment:
|
Parameter |
Sensitivity applied |
Increased impairment |
Reduced impairment |
|
Zinc price |
(5%)/5% change |
11,958 |
(11,946) |
|
Lead price |
(5%)/5% change |
14,621 |
(15,254) |
|
Discount rate |
Increase to 12% discount rate/decrease to 8% |
7,526 |
(7,678) |
|
Treatment charges |
(20%)/20% change |
7,098 |
(7,098) |
|
Head grades |
(5%)/5% change |
20,013 |
(20,013) |
|
Capital expenditure |
10%/(10%) change |
6,494 |
(6,494) |
20. Intangible assets
|
Group |
Goodwill |
Mining licences and permits |
Computer |
Exploration and evaluation $'000 |
Total |
|
Cost |
|
|
|
|
|
|
At 1 January 2024 |
28,468 |
33,941 |
446 |
- |
62,855 |
|
Additions |
- |
- |
26 |
432 |
458 |
|
Disposals |
- |
- |
(1) |
- |
(1) |
|
Exchange differences |
(994) |
(2,262) |
(13) |
(17) |
(3,286) |
|
At 31 December 2024 |
27,474 |
31,679 |
458 |
415 |
60,026 |
|
Additions |
- |
65 |
- |
1,642 |
1,707 |
|
Disposals |
- |
(17) |
- |
- |
(17) |
|
Exchange differences |
273 |
1,583 |
1 |
106 |
1,963 |
|
At 31 December 2025 |
27,747 |
33,310 |
459 |
2,163 |
63,679 |
|
Accumulated amortisation and impairment |
|
|
|
|
|
|
At 1 January 2024 |
20,921 |
16,160 |
349 |
- |
37,430 |
|
Provided during the year |
- |
1,739 |
59 |
- |
1,798 |
|
Disposals |
- |
- |
(1) |
- |
(1) |
|
Exchange differences |
- |
(564) |
(8) |
- |
(572) |
|
At 31 December 2024 |
20,921 |
17,335 |
399 |
- |
38,655 |
|
Provided during the year |
- |
1,648 |
12 |
- |
1,660 |
|
Disposals |
- |
- |
- |
- |
- |
|
Impairment |
- |
- |
- |
296 |
296 |
|
Exchange differences |
- |
171 |
1 |
- |
172 |
|
At 31 December 2025 |
20,921 |
19,154 |
412 |
296 |
40,783 |
|
Net book value at 31 December 2024 |
6,553 |
14,344 |
59 |
415 |
21,371 |
|
Net book value at 31 December 2025 |
6,826 |
14,156 |
47 |
1,867 |
22,896 |
The Company has nil intangible assets at net book value as at 31 December 2025 (2024: nil).
Exploration and evaluation assets
An impairment charge of $296,000 was recognised within exploration and evaluation assets in respect of an exploration licence in Kazakhstan, following the decision to cease further exploration activities. The capitalised expenditure, comprising geochemical sampling and assay costs, was written down to nil.
Kounrad project impairment assessment
In accordance with IAS 36 Impairment of Assets, a review for impairment of goodwill is undertaken at each year end. The Kounrad project, located in Kazakhstan, has an associated goodwill balance of $6,826,000 (2024: $6,553,000), the movement being solely due to foreign exchange differences.
The Kounrad cash flows have been projected until 2034, the remaining life of operation, and the key economic assumptions used in the review were a five-year forecast average nominal copper price of $11,318 per tonne (2024: $9,877 per tonne) and a long-term price of $10,767 per tonne (2024: $9,364 per tonne inflated at market inflation rates) based on market consensus prices and a discount rate of 9.38% (2024: 8.07%). Assumptions in relation to operational and capital expenditure are based on the latest budget approved by the Board. The climate change impacts are also considered including potential impact of regulatory changes and physical risks to assets such as consideration of the impact on the Group asset retirement obligations.
The carrying value of the assets is not currently sensitive to any reasonable changes in key assumptions to the fair value of the project. It would require a reduction of 66% in the copper price or an increase of 308% in operating costs for the financial model to trigger any potential impairment. Management concluded that the net present value of the asset is significantly in excess of the net book value, and, therefore, no impairment has been identified.
The Group has measured the FVLCD using various fair value measurements obtaining inputs from market data. It has used quoted prices (Level 1) inputs for its commodity price assumptions, inflation rates, exchange rates and discount rate.
At the balance sheet date, the Board considers the base case forecasts to be appropriate and balance best estimates. During the year, no impairment of goodwill was required
21. Investments
Shares in Group undertakings:
|
Company |
31 Dec 25 |
31 Dec 24 |
|
At 1 January / 31 December |
5,107 |
5,107 |
Investments in Group undertakings are recorded at cost, which is the fair value of the consideration paid, less impairment.
Details of the Company holdings consolidated in the financial information are included in the table below:
|
Subsidiary |
Registered office address |
Activity |
CAML % |
Non-controlling interests % |
CAML % |
Date of incorporation |
|
|
CAML XD Limited |
50/3 Turan Avenue, Office #5, Astana, District Nura, Z01C1E7, Kazakhstan |
Exploration |
100 |
- |
- |
4 June 2025 |
|
|
CAML Exploration Limited |
50/3 Turan Avenue, Office #5, Astana, District Nura, Z01C1E7, Kazakhstan |
Exploration |
80 |
20 |
80 |
18 August 2023 |
|
|
CAML KZ Limited |
Masters House, 107 Hammersmith Road, London, W14 0QH, |
Holding company |
100 |
- |
100 |
28 June 2021 |
|
|
CAML MK Limited |
Masters House, 107 Hammersmith Road, London, W14 0QH, |
Seller of zinc and lead concentrate |
100 |
- |
100 |
5 September 2017 |
|
|
CAML Limited |
Masters House, 107 Hammersmith Road, London, W14 0QH, |
Dormant company |
100 |
- |
100 |
25 April 2023 |
|
|
CMK Mining B.V. |
Prins Bernhardplein 200 1097 JB Amsterdam, The Netherlands |
Holding company |
100 |
- |
100 |
30 June 2015 |
|
|
CMK Europe SPLLC Skopje |
Ivo Lola Ribar no. 57-1/6, 1000 Skopje, North Macedonia |
Holding company |
100 |
- |
100 |
10 July 2015 |
|
|
Kounrad Copper Company LLP |
Business Centre No. 2, 4 Mira Street, Balkhash, Kazakhstan |
Kounrad project |
100 |
- |
100 |
29 April 2008 |
|
|
Sary Kazna LLP |
Business Centre No. 2, 4 Mira Street, Balkhash, Kazakhstan |
Kounrad project (SUC operations) |
100 |
- |
100 |
6 February 2006 |
|
|
Rudnik SASA DOOEL Makedonska Kamenica |
28 Rudarska Str, Makedonska Kamenica, 2304, |
Sasa project |
100 |
- |
100 |
22 June 2005 |
|
|
Details of Company previous holdings that have been disposed of during the year are: |
|||||||
|
Copper Bay Limited |
Masters House, 107 Hammersmith Road, London, W14 0QH, |
Holding company |
- |
- |
76 |
29 October 2010 |
|
|
Copper Bay (UK) Ltd |
Masters House, 107 Hammersmith Road, London, W14 0QH, |
Dormant company |
- |
- |
76 |
9 November 2011 |
|
|
Copper Bay Chile Limitada |
Ebro 2740, Oficina 603, Las Condes, Santiago, Chile |
Holding company |
- |
- |
76 |
12 October 2011 |
|
|
Minera Playa Verde Limitada |
Ebro 2740, Oficina 603, Las Condes, Santiago, Chile |
Exploration - Copper |
- |
- |
76 |
20 October 2011 |
|
|
Details of Company holdings that are not consolidated in the financial information are: |
|||||||
|
Ken Shuak LLP |
Business Centre No. 2, 4 Mira Street, Balkhash, Kazakhstan |
Shuak project (exploration) |
10 |
90 |
10 |
5 October 2016 |
|
CAML MK Limited
For the year ended 31 December 2025, CAML MK Limited (registered number: 10946728) has opted to take advantage of a statutory exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies. The members of CAML MK Limited have not required it to obtain an audit of their financial statements for the year ended 31 December 2025. In order to facilitate the adoption of this exemption, Central Asia Metals plc, the parent company of the subsidiaries concerned, undertakes to provide a guarantee under Section 479C of the Companies Act 2006 in respect of CAML MK Limited.
CAML KZ Limited
For the year ended 31 December 2025, CAML KZ Limited (registered number: 13479896) has opted to take advantage of a statutory exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies. The members of CAML KZ Limited have not required it to obtain an audit of their financial statements for the year ended 31 December 2025. In order to facilitate the adoption of this exemption, Central Asia Metals plc, the parent company of the subsidiaries concerned, undertakes to provide a guarantee under Section 479C of the Companies Act 2006 in respect of CAML KZ Limited.
Copper Bay Limited
In March 2025, the Company completed the sale of its 76% equity interest in Copper Bay Limited and its subsidiaries (Note 24).
Non-controlling interests
|
Group |
31 Dec 25 |
31 Dec 24 |
|
Balance at 1 January |
1,485 |
1,254 |
|
Loss attributable to non-controlling interests |
104 |
231 |
|
Disposal of subsidiary |
(1,246) |
- |
|
Balance at 31 December |
343 |
1,485 |
Non-controlling interests were held at year end by third parties in relation to CAML Exploration Limited.
22. Investment in equity accounted associate
During the prior year, CAML invested $3,851,000 (£3.0 million) in Aberdeen Minerals Ltd (Aberdeen). The primary business of Aberdeen is carrying out mineral exploration for battery metals in north east Scotland, with a particular focus on nickel, copper and cobalt.
|
|
|
% of ownership interest |
Carrying amount |
||
|
Name of entity |
Country of incorporation/ |
31 Dec 25 |
31 Dec 24 |
31 Dec 25 |
31 Dec 24 |
|
Aberdeen Minerals Ltd |
United Kingdom |
28.4 |
28.4 |
3,635 |
3,775 |
|
Group and Company |
31 Dec 25 |
31 Dec 24 |
|
Brought forward carrying value |
3,775 |
- |
|
Investment recognised at cost |
- |
3,851 |
|
Share of post-tax loss of investment in equity accounted associate |
(140) |
(76) |
|
Carrying amount of the Group's investment in equity accounted associate |
3,635 |
3,775 |
The summarised financial information, prepared in accordance with IFRS, in respect of Aberdeen are as follows:
|
Assets and liabilities |
31 Dec 25 |
31 Dec 24 |
|
Non-current assets |
2,907 |
1,371 |
|
Current assets |
1,443 |
3,220 |
|
Current liabilities |
(150) |
(189) |
|
Non-current liabilities |
(308) |
(140) |
|
Net assets (100%) |
3,892 |
4,262 |
|
Company's share of net assets (28.4%) |
1,106 |
1,211 |
|
Acquisition fair value and other adjustments |
2,529 |
2,564 |
|
Carrying amount of the Group's investment in equity accounted associate |
3,635 |
3,775 |
|
Income statement |
12 months to 31 Dec 25 |
9 months to |
|
Losses (100%) |
(495) |
(264) |
|
Company's share of losses (28.4%) |
(140) |
(76) |
Financial assets at FVTPL
|
Group and Company |
31 Dec 25 |
31 Dec 24 |
|
Balance at 1 January |
336 |
- |
|
Changes in the fair value of the warrants at FVTPL (Notes 10 and 11) |
(277) |
336 |
|
Balance at 31 December |
59 |
336 |
As part of the investment in Aberdeen, CAML was issued warrants to subscribe for an additional 18,181,818 ordinary shares in Aberdeen at an exercise price of 11 pence per share. These warrants are classified as financial assets measured at FVTPL. The fair value of these instruments has been determined at date of issue using the Black-Scholes valuation model, incorporating the probability of various outcome scenarios and is categorised as a Level 3 measurement and subsequently revalued at year end. Subsequent to initial recognition, the warrants are remeasured at fair value at each reporting date. In January 2026, CAML exercised a portion of the warrants for $1.1 million (£850,000), increasing CAML's shareholding to 32.6% from 28.4% previously (Note 42).
23. Equity investments at FVOCI
In May 2025, the Company entered into a definitive Scheme Implementation Deed (SID) with New World Resources (NWR) to acquire all of NWR's shares. In June 2025, the Company acquired 431,818,567 shares for a total consideration of $16,657,000 (AUD $25,500,000), representing a 12.1% shareholding. The equity investment was classified at FVOCI as set out in the Group's accounting policies in Note 2.
Following a competing offer for NWR from a third party, the Company withdrew its proposal in accordance with the SID terms. As a result, a break fee of $1,600,000 was received which has been recognised within other income in the income statement (Note 10). Additionally, the Company sold its shares in NWR, realising a gain of $2,455,000, which has been transferred to retained earnings.
24. Disposal of Copper Bay Limited
On 31 March 2025, the Company completed the sale of its 76.1% shareholding in CBL to Halo Minerals PLC (formerly Guardian Metals PLC). CBL, via its subsidiaries, holds the mineral rights to a copper tailings project in Chile. The assets and liabilities of Copper Bay entities were presented as held for sale in the audited financial statements for the year ended 31 December 2024. The exploration assets and property, plant and equipment held in CBL were fully written off in prior years.
The consideration for CAML's 76.1% interest will be its pro rata share of the overall consideration for 100% of CBL, which comprises a total of $7,500,000 in cash payable in two equal deferred instalments. The first instalment of $3,750,000 will become payable on the production of 7,500 tonnes of copper (either in cathode or concentrate form) by the CBL assets, and the balance of $3,750,000 will become payable when that production reaches 15,000 tonnes. Given the early stage of the project, and the uncertainty over the quantity and timings of production the fair value of the contingent consideration receivable has been assessed as nil.
|
Group and Company |
31 Dec 25 |
|
Consideration receivable: |
|
|
Fair value of contingent consideration |
- |
|
Carrying amount of net assets sold |
(19) |
|
Reclassification of foreign currency translation reserve |
(426) |
|
Loss on disposal |
(445) |
The carrying amounts of assets and liabilities as at the date of sale (31 March 2025) were:
|
Assets and liabilities |
31 Mar 25 |
|
Trade and other receivables |
2 |
|
Cash and cash equivalents |
34 |
|
Total assets |
36 |
|
Trade and other payables |
(17) |
|
Total liabilities |
(17) |
|
Net assets |
19 |
During the year the following have been recognised in discontinued operations:
Loss from discontinued operations:
|
Group |
2025 |
2024 |
|
General and administrative expenses |
(45) |
(162) |
|
Loss on disposal |
(445) |
- |
|
Foreign exchange gain/(loss) |
16 |
(21) |
|
Loss from discontinued operations |
(474) |
(183) |
The loss for the year from discontinued operations, net of tax, presented on the face of the consolidated income statement of $474,000 includes the loss on disposal and the losses incurred by the Copper Bay group up to the date of disposal, 31 March 2025, of $29,000.
25. Trade and other receivables
|
|
Group |
Company |
||
|
|
31 Dec 25 $'000 |
31 Dec 24 $'000 |
31 Dec 25 $'000 |
31 Dec 24 $'000 |
|
Current receivables |
|
|
|
|
|
Receivable due from subsidiary |
- |
- |
671 |
651 |
|
Trade receivables |
1,732 |
1,873 |
- |
- |
|
Prepayments |
2,076 |
2,379 |
335 |
354 |
|
Accrued income |
3,344 |
832 |
- |
- |
|
VAT receivable |
2,744 |
2,190 |
111 |
238 |
|
Other receivables |
442 |
456 |
143 |
192 |
|
|
10,338 |
7,730 |
1,260 |
1,435 |
|
Non-current receivables |
|
|
|
|
|
Prepayments |
1,278 |
2,947 |
- |
- |
|
VAT receivable |
5,268 |
3,669 |
- |
- |
|
|
6,546 |
6,616 |
- |
- |
The carrying value of all the above receivables is a reasonable approximation of fair value. There are no amounts past due at the end of the reporting period that have not been impaired apart from the VAT receivable balance as explained below. Trade and other receivables are accounted for under IFRS 9 using the expected credit loss model and are initially recognised at fair value and subsequently measured at amortised cost less any allowance for expected credit losses. No expected credit losses have been recognised.
The increase in accrued income reflects higher commodity prices comparing periods and an increase in Sasa revenue recognised in the period but not yet invoiced or received at the reporting date, in accordance with the terms of the relevant agreements.
As at 31 December 2025, the total Group VAT receivable was $8,012,000 (2024: $5,859,000), which included a non-current amount of $5,268,000 (2024: $3,669,000) of VAT owed to the Group by the Kazakhstan authorities. The Group considers that the amount is fully recoverable under the Kazakhstan tax legislation and the Group is working closely with its advisers to recover the remaining portion. The planned means of recovery will be through a combination of the local sales of cathode copper to offset VAT recoverable and by a continued dialogue with the authorities for cash recovery and further offsets against VAT payable on local sales.
26. Loans due from subsidiary
|
Company |
31 Dec 25 $'000 |
31 Dec 24 $'000 |
|
Current receivables |
|
|
|
Loans due from subsidiary |
22,641 |
22,094 |
|
|
22,641 |
22,094 |
|
Non-current receivables |
|
|
|
Loans due from subsidiary |
153,737 |
263,210 |
|
|
153,737 |
263,210 |
Loans due from subsidiaries are accounted for under IFRS 9 using the expected credit loss model and are initially recognised at fair value and subsequently measured at amortised cost less any allowance for expected credit losses.
At 31 December 2025, the Company had three loans due from directly owned subsidiaries.
A loan is due from CAML MK Limited for $286,138,000 (2024: $283,743,000). During the year, an expected credit loss allowance of $114,431,000 was determined based on an expected credit loss model estimating the future cash flows available to repay the loan based on the life-of-mine plan for Sasa. This calculation was performed following the impairment of the Sasa CGU using the future cash flows applied in the impairment assessment of the Sasa group discounted disclosed in Note 19, excluding the in-situ value assigned to mineralisation not in the production schedule, and discounted using the original effective interest rate method of 2.25%. The loan accrues interest at a rate of 2.25% per annum (2024: 2.25%).
A loan due from CAML Exploration Limited for $4,348,000 (2024: $1,561,000), which accrues interest at a rate of 6.90% per annum (2024: 6.90%).
A loan due from CAML XD Limited for $323,000 (2024: nil), which accrues interest at a rate of 6.08% per annum (2024: nil).
The loans have been assessed for expected credit loss under IFRS 9; however, as the Group's strategies are aligned, there is no realistic expectation that repayment would be demanded early ahead of the current repayment plans. Aside from the expected credit loss recognised on the loan due from CAML MK Limited, the expected future cash flows arising from the asset exceed the intercompany loan value under various scenarios considered, which are outlined in the impairment assessment in Note 19. The Company considers these loans to be recoverable and any additional expected credit loss to be immaterial.
27. Inventories
|
Group |
31 Dec 25 |
31 Dec 24 (restated)* |
1 Jan 24 (restated)* |
|
Raw materials and consumables |
18,615 |
15,066 |
16,016 |
|
Finished goods |
1,982 |
1,046 |
1,924 |
|
|
20,597 |
16,112 |
17,940 |
* See Note 43 for details regarding the prior year restatement.
The Group recognises all inventory at the lower of cost and net realisable value. There were
write-offs to the income statement during the year totalling $nil (2024: $224,000) for defective consumables inventory. The total inventory recognised through the income statement was $5,793,000 (2024: $6,285,000).
28. Cash and cash equivalents and restricted cash
|
|
Group |
Company |
||
|
|
31 Dec 25 |
31 Dec 24 |
31 Dec 25 |
31 Dec 24 |
|
Cash at bank and on hand |
79,673 |
67,318 |
69,474 |
57,400 |
|
Cash and cash equivalents |
79,673 |
67,318 |
69,474 |
57,400 |
|
Restricted cash |
396 |
327 |
- |
- |
|
Total cash and cash equivalent including restricted cash |
80,069 |
67,645 |
69,474 |
57,400 |
The restricted cash amount of $396,000 (2024: $327,000) is held at bank to cover Kounrad subsoil user licence requirements. Under the terms of the licence agreement, the release or use of these funds is contingent upon obtaining written consent from the Kazakh government.
The Group holds an overdraft facility in North Macedonia, and these amounts are disclosed in Note 35.
Reconciliation to cash flow statements
The above figures reconcile to the amount of cash shown in the statement of cash flows at the end of the financial year as follows:
|
Group |
31 Dec 25 $'000 |
31 Dec 24 $'000 |
|
Cash and cash equivalents as above (excluding restricted cash) |
79,673 |
67,318 |
|
Cash at bank and on hand in held for sale assets subsequently disposed |
- |
60 |
|
Balance per statement of cash flows |
79,673 |
67,378 |
29. Share capital and premium
|
Group and Company |
Number of |
Ordinary |
Share |
Capital redemption reserve $'000 |
Treasury |
|
At 1 January 2024 |
182,098,266 |
1,821 |
205,725 |
- |
(15,413) |
|
Exercise of share options |
- |
- |
100 |
- |
1,528 |
|
At 31 December 2024 |
182,098,266 |
1,821 |
205,825 |
- |
(13,885) |
|
Exercise of share options |
- |
- |
- |
- |
- |
|
Shares purchased for cancellation |
(2,512,804) |
(25) |
- |
25 |
- |
|
At 31 December 2025 |
179,585,462 |
1,796 |
205,825 |
25 |
(13,885) |
The par value of Ordinary Shares is $0.01 per share and all shares are fully paid.
Capital redemption reserve - share buyback programme
On 10 September 2025, the Company announced the initiation of a share buyback programme to purchase Ordinary Shares of $0.01 each in the Company for up to a maximum aggregate consideration of $10,000,000. The share buyback programme is in line with the general authority to re-purchase, in the market, up to 18,190,494 Ordinary Shares granted by the Company's shareholders at the 2025 AGM held on 15 May 2025 and will be carried out on the London Stock Exchange.
The Buyback Programme commenced on the date of the announcement and will continue until 31 March 2026 or until the number of Ordinary Shares equal to a maximum aggregate consideration of $10,000,000 have been purchased under the Buyback Programme or the process is terminated or paused.
Between 10 September 2025 and 31 December 2025, the Company purchased and cancelled 2,512,804 Ordinary Shares for a total consideration of $5,191,000 (£3,862,000), at a volume weight average price of $2.08 (£1.56) per share. This share buyback programme was completed post year end (see Note 42).
Employee Benefit Trust
The Company set up an Employee Benefit Trust (EBT) during 2009 for the purpose of satisfying awards granted under the Company's Employee Share Plans (Note 31). In prior years, the Company issued and allotted Ordinary Shares to the trustee of the EBT. The shares allotted to the EBT are treated as treasury shares and deducted from equity in the consolidated statement of financial position. In addition, shares are held jointly with the Company's EBT and certain employees under a joint share ownership plan.
The share option exercises during the year were cash-settled, amounting to $4,287,000 (2024: $3,900,000). In the prior year, certain exercise of share options were partly settled by selling treasury shares and the excess of the proceeds from the sale of treasury shares over their purchase price was recognised in share premium.
Group and Company |
Treasury shares |
EBT shares |
EBT joint share ownership |
|
At 1 January 2024 |
193,325 |
5,691,150 |
2,239,602 |
|
Disposal of treasury shares |
- |
(626,537) |
- |
|
At 31 December 2024 |
193,325 |
5,064,613 |
2,239,602 |
|
Disposal of treasury shares |
- |
- |
- |
|
At 31 December 2025 |
193,325 |
5,064,613 |
2,239,602 |
30. Currency translation reserve
Currency translation differences arose primarily on the translation on consolidation of the Group's Kazakhstan-based and North Macedonian-based subsidiaries whose functional currency is the tenge and denar respectively. In addition, currency translation differences arose on the goodwill and fair value uplift adjustments to the carrying amounts of assets and liabilities arising on the Kounrad Transaction and CMK Resources acquisition, which are denominated in tenge and denar, respectively. During 2025, a non-cash currency translation gain of $38,797,000 (2024: loss of $27,261,000) was recognised within equity.
31. Share-based payment liability
The Company provides rewards to staff in addition to their salaries and annual discretionary bonuses, through the granting of share options in the Company. The Company share option scheme has an exercise price of effectively nil for the participants.
The share options granted during 2012 until 2018 were based on the achievement, by the Group and the participant, of the performance targets as determined by the CAML Remuneration Committee that are required to be met in year one, with options then able to be exercised one third annually from the end of year one. Options granted from 2012 to 2018 had straightforward conditions attached, have all vested and are valued at each reporting date using the Group share price at that date less the exercise price.
Share options granted in 2019 vested after three years depending on the achievement by the Group of the performance target relating to the level of absolute total shareholder return compound annual growth rate of the value of the Company's shares over the performance period of three financial years ending 31 December 2021.
Share options granted in 2020 to 2025 vest after three years depending on a combination of the achievement by the Group of the performance target relating to the level of total shareholder return compound annual growth rate of the value of the Company's shares over the performance period of three financial years relative to the constituents of a selected group mining index of companies as well as sustainability performance targets.
The fair value at grant date of the 2019 to 2025 grants is independently determined using a Monte Carlo simulation model that takes into account the exercise price, the term of the option, the impact of dilution (where material), the share price at grant date and expected price volatility of the underlying share, the expected dividend yield, the risk-free interest rate for the term of the option, and the correlations and volatilities of the share price.
As at 31 December 2025, the share options granted in 2019, 2020, 2021 and 2022 (2024: 2019, 2020 and 2021) have vested. These options are valued at year-end using the Group share price at that date, less the exercise price. As at 31 December 2025, the share options granted in 2023, 2024 and 2025 (2024: 2022, 2023 and 2024) have not yet vested. These unvested options have been fair valued at the year-end using the Monte Carlo simulation model.
|
Group and Company |
31 Dec 25 |
31 Dec 24 |
|
Vesting period |
3 years 0 months |
3 years 0 months |
|
Exercise price |
$0.01 |
$0.01 |
|
Risk-free interest rate |
3.93% |
4.19% |
|
Volatility |
1.88% |
3.81% |
|
Share price at year end |
£1.88 |
£1.57 |
The volatility was determined based on the length of the vesting period, which is three years, and the historical share price during this period at the date of valuation. Additionally, since the vesting conditions of the share options are based on CAML's share price compared to the relative total shareholder return of constituents in a selected mining index, the model uses correlations of the share prices to assign a value to the share option.
As at 31 December 2025, 7,629,584 (2024: 6,976,892) options were outstanding. Share options are granted to Directors and selected employees.
Movements in the number of share options outstanding and their related weighted average price are as follows:
|
|
2025 |
2024 |
||
|
|
Average exercise |
Options |
Average exercise |
Options |
|
At 1 January |
0.01 |
6,976,892 |
0.01 |
6,425,720 |
|
Granted |
0.01 |
2,389,761 |
0.01 |
2,012,034 |
|
Exercised |
0.01 |
(1,455,285) |
0.01 |
(1,293,658) |
|
Non-vesting |
0.01 |
(281,784) |
0.01 |
(167,204) |
|
At 31 December |
0.01 |
7,629,584 |
0.01 |
6,976,892 |
Non-vesting shares relate to options granted for which the performance targets were not met. Out of the outstanding options of 7,629,584 (2024: 6,976,892), 3,172,810 options (2024: 1,972,648) were exercisable as at 31 December 2025 excluding the value of additional share options for dividends declared on those outstanding. The related weighted average share price at the time of exercise was $2.07 (2024: $2.73) per share. Share options exercised by the Directors during the year are disclosed in the Remuneration Committee Report.
Share options outstanding at the end of the year have the following expiry date and exercise prices:
|
Grant - vest |
Expiry date |
Option |
2025 |
2024 |
|
22 Apr 15 |
22 Apr 27 |
0.01 |
212,121 |
212,121 |
|
18 Apr 16 |
17 Apr 27 |
0.01 |
227,312 |
227,312 |
|
21 Apr 17 |
20 Apr 27 |
0.01 |
168,279 |
168,279 |
|
2 May 18 |
1 May 28 |
0.01 |
265,091 |
309,031 |
|
30 May 19 |
29 May 29 |
0.01 |
193,616 |
273,340 |
|
16 Dec 20 |
15 Dec 30 |
0.01 |
97,147 |
198,223 |
|
15 Jul 21 |
14 Jul 31 |
0.01 |
152,969 |
584,341 |
|
22 Jun 22 |
21 Jun 32 |
0.01 |
540,807 |
1,339,979 |
|
12 Apr 23 |
11 Apr 33 |
0.01 |
1,644,022 |
1,652,232 |
|
9 Apr 24 |
8 Apr 34 |
0.01 |
1,922,422 |
2,012,034 |
|
29 May 25 |
28 May 35 |
0.01 |
2,205,798 |
- |
|
|
|
|
7,629,584 |
6,976,892 |
The changes in the fair value of the cash-settled share-based payments of $7,955,000 (2024: $3,966,000) have been reported within the consolidated income statement.
|
Group and Company |
31 Dec 25 |
31 Dec 24 |
|
Share-based payment liability |
14,594 |
10,926 |
|
Classified as: |
|
|
|
Current |
11,984 |
8,635 |
|
Non-current |
2,610 |
2,291 |
The total intrinsic value at the end of 31 December 2025 for which the share options have vested is $7,994,000 (2024: $6,165,000) which includes the value of additional share options for dividends declared on those exercisable.
32. Employee benefit liabilities
|
Group |
Employee retirement |
Jubilee benefits scheme |
Total |
|
At 1 January 2024 |
282 |
378 |
660 |
|
Change in estimate |
85 |
121 |
206 |
|
Settlements |
(14) |
(19) |
(33) |
|
Exchange rate difference |
(18) |
(24) |
(42) |
|
At 31 December 2024 |
335 |
456 |
791 |
|
Change in estimate |
44 |
(295) |
(251) |
|
Remeasurements of defined benefit pensions schemes |
25 |
- |
25 |
|
Settlements |
(28) |
(5) |
(33) |
|
Unwinding of discount (Note 16) |
18 |
8 |
26 |
|
Exchange rate difference |
45 |
44 |
89 |
|
At 31 December 2025 |
439 |
208 |
647 |
|
Non-current |
393 |
182 |
575 |
|
Current |
46 |
26 |
72 |
|
At 31 December 2025 |
439 |
208 |
647 |
Employee retirement defined benefit scheme
In accordance with IAS 19 Employee Benefits, the Group recognises defined benefit obligations in respect of statutory retirement benefits and jubilee awards in North Macedonia. Comparative balances at 31 December 2024 have been reclassified in the statement of financial position, with $728,000 of non-current and $63,000 of current obligations reclassified from provisions to employee benefit liabilities to better reflect their nature.
All employers in North Macedonia are obliged to pay employees a minimum severance pay on retirement equal to two months of the average monthly salary applicable in the country at the time of retirement. The retirement benefit obligation is stated at the present value of expected future payments to employees with respect to employment retirement pay. The present value of expected future payments to employees is determined by an independent authorised actuary in accordance with the prevailing rules of actuarial mathematics.
The Group is obliged to pay jubilee anniversary awards in North Macedonia for each ten years of continuous service of the employee.
The employee benefit liabilities are recognised in accordance with actuary calculations. Basic 2025 actuary assumptions are used as follows:
|
Discount rate: |
5.20% |
|
Expected rate of salary increase: |
6.10% |
33. Trade and other payables
|
|
Group |
Company |
||
|
|
31 Dec 25 |
31 Dec 24 |
31 Dec 25 |
31 Dec 24 |
|
Trade and other payables |
9,436 |
7,403 |
234 |
280 |
|
Accruals |
5,702 |
5,792 |
5,049 |
5,397 |
|
Social security and other taxes |
7,403 |
3,978 |
1,335 |
282 |
|
Derivative financial instruments |
1,179 |
- |
1,179 |
- |
|
|
23,720 |
17,173 |
7,797 |
5,959 |
The carrying value of all the above payables is equivalent to fair value.
All Group and Company trade and other payables are payable within less than one year for both reporting periods.
34. Silver stream commitment
The carrying amounts of the silver stream commitment for silver delivery are as follows:
|
Group |
31 Dec 25 |
31 Dec 24 |
|
Current |
1,130 |
1,082 |
|
Non-current |
13,902 |
14,978 |
|
|
15,032 |
16,060 |
On 1 September 2016, the CMK Group entered into a Silver Purchase Agreement. The CAML Group acquired this agreement as part of the acquisition of the CMK Group and inherited a silver stream commitment related to the production of silver during the life of the mine. The reduction in the silver stream commitment is recognised in the income statement within cost of sales as the silver is delivered based on the units of production and is updated to reflect the latest estimate of reserves.
35. Borrowings and loans due to subsidiary
|
|
Group |
Company |
||
|
|
31 Dec 25 |
31 Dec 24 |
31 Dec 25 |
31 Dec 24 |
|
Current |
|
|
|
|
|
Bank overdrafts: |
|
|
|
|
|
Unsecured |
936 |
252 |
- |
- |
|
Loans due to subsidiary |
- |
- |
48,729 |
42,220 |
|
Total current |
936 |
252 |
48,729 |
42,220 |
The movement on the overdrafts and loans due to subsidiary can be summarised as follows:
|
|
Group - overdrafts |
Company - loan due to subsidiary |
||
|
|
31 Dec 25 |
31 Dec 24 |
31 Dec 25 |
31 Dec 24 |
|
Balance at 1 January |
252 |
326 |
42,220 |
28,146 |
|
Drawdown of overdraft |
20,463 |
3,563 |
- |
- |
|
Repayments of overdraft |
(19,841) |
(3,621) |
- |
- |
|
Advance of loan due to subsidiary |
- |
- |
67,000 |
71,500 |
|
Repayments of loan due to subsidiary |
- |
- |
(60,500) |
(57,500) |
|
Finance charge interest |
99 |
20 |
1,637 |
1,750 |
|
Interest paid |
(99) |
(20) |
(1,628) |
(1,676) |
|
Foreign exchange |
62 |
(16) |
- |
- |
|
Balance at 31 December |
936 |
252 |
48,729 |
42,220 |
Group
The overdrafts are held with North Macedonian banks and are denominated in euro and payable at fixed interest rates ranging from 3.24% to 5.30%.
Company
The Company has an outstanding loan due to its subsidiary, Kounrad Copper Company LLP (KCC), an indirectly owned subsidiary. The initial loan, entered into under a loan agreement dated 5 August 2024, was fully repaid in April 2025.
In June 2025, the Company entered into a new loan agreement with KCC with an outstanding balance at 31 December 2025 of $48,729,000. The loan accrues interest at a rate of 6.67% per annum and is repayable on demand.
The total interest paid on loans with KCC during the year amounted to $1,628,000 (2024: $1,676,000).
The carrying value of loans due to subsidiary and overdrafts approximates fair value:
|
|
Carrying amount |
Fair value |
||
|
Group |
31 Dec 25 $'000 |
31 Dec 24 $'000 |
31 Dec 25 $'000 |
31 Dec 24 $'000 |
|
Bank overdrafts |
936 |
252 |
936 |
252 |
|
|
936 |
252 |
936 |
252 |
The carrying value of loans due to subsidiary and overdrafts approximates fair value:
|
|
Carrying amount |
Fair value |
||
|
Company |
31 Dec 25 $'000 |
31 Dec 24 $'000 |
31 Dec 25 $'000 |
31 Dec 24 $'000 |
|
Loan due to subsidiary |
48,729 |
42,220 |
48,729 |
42,220 |
|
|
48,729 |
42,220 |
48,729 |
42,220 |
36. Provisions for other liabilities and charges
|
Group |
Asset |
Leasehold dilapidation |
Legal |
Total |
|
At 1 January 2024 |
26,100 |
94 |
2 |
26,196 |
|
Change in estimate |
(576) |
- |
- |
(576) |
|
Unwinding of discount (Note 16) |
2,013 |
7 |
- |
2,020 |
|
Exchange rate difference |
(2,366) |
(2) |
- |
(2,368) |
|
At 31 December 2024 |
25,171 |
99 |
2 |
25,272 |
|
Change in estimate |
6,863 |
- |
- |
6,863 |
|
Unwinding of discount (Note 16) |
2,337 |
10 |
- |
2,347 |
|
Exchange rate difference |
2,704 |
4 |
- |
2,708 |
|
At 31 December 2025 |
37,075 |
113 |
2 |
37,190 |
|
Non-current |
37,075 |
113 |
2 |
37,190 |
|
Current |
- |
- |
- |
- |
|
At 31 December 2025 |
37,075 |
113 |
2 |
37,190 |
The Company has $113,000 leasehold dilapidation costs associated with its office premises at 31 December 2025 (2024: $99,000).
a) Asset retirement obligation
The Group provides for the asset retirement obligation associated with the mining activities at Kounrad, estimated to be required in 2034. During 2022, the Group engaged an external expert consultant to prepare a conceptual closure plan and asset retirement obligation for the leaching and Kounrad operation and associated infrastructure. The expected current cash flows, including a cost contingency of 10%, were projected over the useful life of the mining site and inflated using an inflation rate of 11.07% (2024: 7.61%) and discounted to 2025 terms using a nominal pre-tax risk-free discount rate of 6.25% (2024: 6.71%). The costs of the related assets are depreciated over the useful life of the assets and are included in property, plant and equipment.
The Group also provides for the asset retirement obligation associated with the mining activities at Sasa, estimated to be primarily commencing in 2034. The expected current cash flows, including a cost contingency of 10%, were projected over the useful life of the mining site and inflated using a compounded inflation rate of 5.05% (2024: 4.79%) and discounted to 2025 terms using a discount rate of 8.84% (2024: 9.52%). The costs of the related assets are depreciated over the useful life of the assets and are included in property, plant and equipment.
The increase in estimate in relation to the asset retirement obligation of $6,863,000 (2024: decrease of $576,000) is driven primarily by an updated life-of-mine for the Sasa mine now assumed to be 2034 which accelerates the expected timing of closure cash outflows. The movement also reflects revisions to the timing of certain closure activities and the application of updated discount and inflation rates at the Kounrad and Sasa operations based on the Group's latest assumptions.
b) Legal claims
The Group is party to certain legal claims. Provisions are recognised where management considers that an outflow of economic benefits is probable and can be reliably estimated, based on the specific facts of each case, the stage of proceedings and advice from external legal counsel. Matters are reassessed at each reporting date and provisions updated as necessary.
37. Cash generated from operations
|
Group |
Note |
2025 |
2024 (restated)* |
|
(Loss)/profit before income tax including discontinued operations |
|
(58,980) |
77,061 |
|
Adjustments for: |
|
|
|
|
Impairment of non-current assets |
19, 20 |
117,765 |
- |
|
Depreciation and amortisation |
|
30,350 |
27,088 |
|
Silver stream commitment amortisation |
7 |
(1,028) |
(984) |
|
Share of post-tax loss of investment in equity accounted associate |
22 |
140 |
76 |
|
Cash-settled share-based payments |
29, 31 |
(4,287) |
(3,900) |
|
Fair value movement of share-based payment liability |
31 |
7,955 |
3,966 |
|
(Gain)/loss on disposal of property, plant and equipment |
19 |
(36) |
9 |
|
Loss on disposal of Copper Bay Limited |
24 |
445 |
- |
|
Foreign exchange loss/(gain) |
|
4,216 |
(5,638) |
|
Other income |
|
(1,600) |
(336) |
|
Other losses |
|
1,456 |
882 |
|
Finance income |
15 |
(1,792) |
(2,364) |
|
Finance costs |
16 |
2,612 |
2,192 |
|
Changes in working capital: |
|
|
|
|
(Increase)/decrease in inventories |
|
(2,780) |
2,716 |
|
Increase in trade and other receivables |
|
(5,369) |
(1,561) |
|
Settlement of employee benefit liabilities |
|
(33) |
(34) |
|
Increase/(decrease) in trade and other payables |
|
723 |
(5,276) |
|
Cash generated from operations |
|
89,757 |
93,897 |
The increase in trade and other receivables includes a movement in the Group VAT receivable balance of $1,652,000 (2024: $1,125,000), which is offset against Group corporate income tax payable during the year. Comparative cash flows relating to overdrafts have been presented on a gross basis to better align with IAS 7.
38. Commitments
Significant expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:
|
Group |
31 Dec 25 |
31 Dec 24 |
|
Property, plant and equipment |
6,647 |
5,165 |
|
|
6,647 |
5,165 |
39. Dividend per share
During the year, the Company paid $31,386 000 (2024: $40,869,000), which consisted of a 2025 interim dividend of 4.5 pence per share and 2024 final dividend of 9 pence per share (2024: 2024 interim dividend of 9 pence per share and 2023 final dividend of 9 pence per share).
40. Related party transactions
Key management remuneration
Key management remuneration comprises the Directors' remuneration, including Non-Executive Directors, and is as follows:
|
|
2025 |
2025 |
2025 |
2025 |
2025 Employers' |
2025 |
2024 |
|
Executive Directors: |
|
|
|
|
|
|
|
|
Gavin Ferrar |
566 |
387 |
8 |
10 |
162* |
1,133 |
977 |
|
Louise Wrathall |
436 |
300 |
9 |
5 |
105 |
855 |
853 |
|
Non-Executive Directors: |
|
|
|
|
|
|
|
|
Nick Clarke |
230 |
- |
- |
- |
33 |
263 |
480 |
|
Mike Prentis |
118 |
- |
- |
- |
16 |
134 |
129 |
|
Dr Gillian Davidson |
112 |
- |
- |
- |
15 |
127 |
121 |
|
Roger Davey |
112 |
- |
- |
- |
15 |
127 |
121 |
|
Dr Mike Armitage |
98 |
- |
- |
- |
13 |
111 |
108 |
|
Nigel Robinson1 |
216 |
- |
- |
3 |
216* |
435 |
1,394 |
|
Alison Baker2 |
42 |
- |
- |
- |
6 |
48 |
- |
|
David Swan3 |
84 |
- |
- |
- |
11 |
95 |
121 |
|
|
2,014 |
687 |
17 |
18 |
592 |
3,328 |
4,304 |
1 Held the position of Executive Director until 31 March 2025 and was subsequently appointed as a Non-Executive Director on 1 April 2025.
2 Appointed on 21 August 2025.
3 Resigned on 2 September 2025.
* Employers' NI includes amounts payable on the exercise of share options as disclosed below.
During the year, the Non-Executive Director, Nigel Robinson, and the Executive Director, Gavin Ferrar, exercised 895,100 options for a total share option gain of $1,809,000, as set out in the table below:
|
Name |
Position |
Number of options over shares exercised |
Share option $'000 |
|
Nigel Robinson |
Non-Executive Director |
617,276 |
1,241 |
|
Gavin Ferrar |
Chief Executive Officer |
277,824 |
568 |
|
|
|
895,100 |
1,809 |
The directors who hold an interest in the issued share capital of the Company during the year received dividends amounting to:
|
Name |
Position |
2025 |
2024 |
|
Nick Clarke |
Non-Executive Chairman |
245 |
321 |
|
Nigel Robinson |
Non-Executive Director |
115 |
151 |
|
Dr Mike Armitage |
Non-Executive Director |
4 |
6 |
|
Mike Prentis |
Non-Executive Director |
3 |
4 |
|
Dr Gillian Davidson |
Non-Executive Director |
2 |
2 |
|
Louise Wrathall |
Chief Financial Officer |
2 |
2 |
|
Gavin Ferrar |
Chief Executive Officer |
2 |
2 |
|
David Swan |
Non-Executive Director |
1 |
2 |
|
Alison Baker |
Non-Executive Director |
1 |
- |
|
|
|
375 |
490 |
CAML Exploration Limited
CAML X is owned 80% by CAML and 20% by Thaler Minerals LLP (Thaler). CAML X's CEO is Vladimir Benes who is also a shareholder of Thaler. He is therefore an ultimate beneficial shareholder of CAML X.
Kounrad Foundation
The Kounrad Foundation, a charitable foundation through which Kounrad donates to the community, was advanced $608,000 (2024: $569,000). This is a related party by virtue of common Directors.
Sasa Foundation
The Sasa Foundation, a charitable foundation through which Sasa donates to the community, was advanced $303,000 (2024: $408,000). This is a related party by virtue of common Directors.
41. Deferred tax asset and liability
Group
The movements in the Group's deferred tax asset and liability are as follows:
|
Group |
At |
Currency translation |
(Debit)/ |
At |
|
Other temporary differences |
(2,006) |
(84) |
(1,185) |
(3,275) |
|
Fair value adjustment on Kounrad Transaction |
(3,457) |
(136) |
242 |
(3,351) |
|
Fair value adjustment on CMK (Sasa) acquisition |
(10,589) |
(1,297) |
11,886 |
- |
|
Deferred tax liability, net |
(16,052) |
(1,517) |
10,943 |
(6,626) |
|
Reflected in the statement of financial position as: |
31 Dec 25 |
31 Dec 24 |
|
Deferred tax asset |
534 |
561 |
|
Deferred tax liability |
(7,160) |
(16,613) |
|
Group |
At |
Currency translation |
Credit to income |
At |
|
Other temporary differences |
(2,381) |
(4) |
379 |
(2,006) |
|
Fair value adjustment on Kounrad Transaction |
(4,259) |
533 |
269 |
(3,457) |
|
Fair value adjustment on CMK (Sasa) acquisition |
(11,831) |
627 |
615 |
(10,589) |
|
Deferred tax liability, net |
(18,471) |
1,156 |
1,263 |
(16,052) |
A taxable temporary difference arose as a result of the Kounrad Transaction and CMK Resources Limited (Sasa) acquisition, where the carrying amounts of the assets acquired were increased to fair value at the date of acquisition but the tax base remained at cost. The Kounrad deferred tax relates to the asset in mining licences and permits within intangible assets and the CMK Resources Limited (Sasa) deferred tax relates to the asset in mineral rights in plant, property and equipment.
The deferred tax liability arising from these taxable temporary differences has been reduced by $12,128,000 during the year (2024: $884,000) to reflect the tax consequences of impairing and depreciating the recognised fair values of the assets during the year.
|
Group |
31 Dec 25 $'000 |
31 Dec 24 $'000 |
|
Deferred tax liability due within 12 months |
(1,023) |
(1,568) |
|
Deferred tax liability due after 12 months |
(6,137) |
(15,045) |
|
Deferred tax liability |
(7,160) |
(16,613) |
All deferred tax assets are due after 12 months. All amounts are shown as non-current on the face of the statement of financial position as required by IAS 12 Income Taxes.
Where the realisation of deferred tax assets is dependent on future profits, the Group recognises losses carried forward and other deferred tax assets only to the extent that the realisation of the related tax benefit through future taxable profits is probable.
The Group did not recognise other potential deferred tax assets arising from interest expenses disallowed under the UK Corporate Interest Restriction rules and tax losses carried forward of $41,754,000 (2024: $36,952,000), arising from asset retirement obligations of $4,162,000 (2024: $2,708,000) and in respect of share-based payments $1,974,000 (2024: $nil) as there is insufficient evidence of future taxable profits within the entities concerned. Unrecognised losses can be carried forward indefinitely.
Company
At 31 December 2025 and 2024, the Company had no recognised deferred tax assets or liabilities.
At 31 December 2025, the Company had not recognised potential deferred tax assets arising from tax losses carried forward of $22,265,000 (2024: $24,297,000) as there is insufficient evidence of future taxable profits. The losses can be carried forward indefinitely.
At 31 December 2025, the Company had other deferred tax assets of $1,974,000 (2024: $nil) in respect of share-based payments and other temporary differences that had not been recognised because of insufficient evidence of future taxable profits.
42. Events after the reporting period
Share buyback programme
After the reporting period, the Company purchased and cancelled 1,681,181 Ordinary Shares for a total consideration of $4,732,000. Following the cancellation, the total number of issued Ordinary Shares is 177,904,281 as at 18 March 2026. The buyback programme was completed on 4 March 2026.
Share premium cancellation
On 10 March 2026, the Company announced a proposed cancellation of the Company's share premium account (the 'Share Premium Cancellation'). The Share Premium Cancellation is being undertaken in order to restructure the Company's balance sheet so as to increase the amount of distributable reserves available (subject to the protection of creditors).
The Share Premium Cancellation will create further distributable reserves to support the Company's ability to make future payments of dividends to its shareholders and undertake potential further share buybacks (in each case should circumstances mean it is appropriate or desirable to do so), as well as other corporate purposes of the Company.
The Share Premium Cancellation is conditional upon the passing of a special resolution by the Company's shareholders at an Extraordinary General Meeting to be held on 30 March 2026, in addition to approval by the court. It is expected that the effective date of the Share Premium Cancellation will be on or around 29 April 2026.
In addition to the Share Premium Cancellation, in March 2026, $33,000,000 of intercompany dividends were distributed from Kazakhstan to the parent company, increasing the amount of distributable reserves available.
Aberdeen Minerals
In January 2026, CAML exercised a portion of the warrants received as part of its initial £3 million investment in Aberdeen in 2024, for $1.1 million (£850,000), increasing CAML's shareholding to 32.6% from 28.4% previously. The warrants allowed for a further investment of up to £2 million, and agreement was also reached to extend the expiry of the remaining warrants to allow sufficient time for the exploration work on this southwestern target zone to be evaluated.
43. Prior year restatement
Since the commencement of Kounrad's operations, the two Kazakh subsidiaries have undertaken intercompany sales and purchases at a mark-up to account for the copper contained within chemical solutions. As the Group cannot recognise profit on internal trading until copper is sold to external customers, the mark-up provision for unrealised profit (PURP) should have been reversed when such external sales occurred. However, historically this reversal on consolidation was not performed in full, leading to an understatement of inventory and an overstatement of cost of sales, with the cumulative impact reflected in retained earnings. The restatement had no impact on current or deferred taxation. As a result, the Group has restated the 2024 financial statements and the statement of financial position as at 1 January 2024 in accordance with IAS 8. The consolidated financial statement line items affected in the prior years are as follows:
|
Consolidated statement of financial position (extract) |
31 Dec 24 (previously stated) |
Adjustment |
31 Dec 24 |
1 Jan 24 |
Adjustment |
1 Jan 24 |
|
Inventories |
12,517 |
3,595 |
16,112 |
14,879 |
3,061 |
17,940 |
|
Retained earnings |
307,864 |
3,595 |
311,459 |
297,871 |
3,061 |
300,932 |
|
Total equity |
351,712 |
3,595 |
355,307 |
367,583 |
3,061 |
370,644 |
|
Consolidated income statement (extract) |
2024 |
Adjustment |
2024 |
|
Cost of sales |
(108,801) |
534 |
(108,267) |
|
Profit for the year |
50,631 |
534 |
51,165 |
|
Basic EPS from profit for the year, $ cents |
28.80 |
0.30 |
29.10 |
|
Diluted EPS from profit for the year, $ cents |
26.84 |
0.30 |
27.14 |
There was no impact on the parent company profit.
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