Central Asia Metals (LSE:CAML) has released an updated year-end Mineral Resource and Ore Reserve statement for its Sasa zinc-lead operation, reporting a total Mineral Resource of 20.5 million tonnes and an Ore Reserve of 6.9 million tonnes as at 31 December 2025. Based solely on the Svinja Reka deposit, the revised plan indicates a mine life extending to 2034.
The update reflects more challenging geological conditions at depth, including narrower orebodies and increased complexity, alongside higher cost assumptions. As a result, reserve tonnage is lower than previously reported.
The company anticipates recording a non-cash impairment charge of up to $120 million in its 2025 accounts, driven by the shorter projected mine life and revised operational and pricing assumptions. Management stressed that the accounting adjustment will not impact cash flow generation or alter its dividend policy.
To address operational headwinds, Central Asia Metals is advancing efficiency and cost-reduction initiatives at Sasa. Ongoing exploration activities and consideration of an ore-sorting project are intended to enhance performance and potentially extend the mine’s economic lifespan.
From an investment perspective, the group continues to exhibit strong financial fundamentals, including healthy margins, modest leverage and solid cash generation. Valuation metrics remain supportive, with a moderate price-to-earnings ratio and an attractive dividend yield. While technical indicators suggest a constructive broader trend, overbought signals point to possible near-term share price volatility. Recent earnings commentary reaffirmed commitment to shareholder returns, while acknowledging cost and grade pressures at Sasa.
More about Central Asia Metals
Central Asia Metals is a base metals producer focused on zinc and lead, operating the wholly owned Sasa mine in North Macedonia. The company prioritises sustainable cash flow generation and consistent shareholder returns, maintaining its stated dividend policy even as it navigates operational and geological challenges at Sasa.
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