Interview with Gavin Ferrar, CEO of Central Asia Metals

Our previous interview: https://www.cruxinvestor.com/posts/central-asia-metals-lsecaml-kazakhstan-copper-producer-reports-solid-financial-performance-6938

Recording date: 31st March 2026

Central Asia Metals PLC, an AIM-listed base metals producer with a $400 million market capitalization, delivered robust 2025 financial results while navigating a critical transition from mature assets to new growth opportunities.

The company reported $230 million in revenue and $103 million in EBITDA, generating $56 million in free cash flow. This enabled a 12 pence per share dividend representing a 7% yield—paid at the maximum end of its 30-50% free cash flow distribution policy. The company also completed a $10 million share buyback before market weakness reduced valuations by 20-30% across the mining sector.

Central Asia Metals' financial backbone remains the Kounrad copper operation in Kazakhstan, which operates at exceptional 75% EBITDA margins. The facility processes 600 million tons of Soviet-era waste dumps through heap leaching, producing 13,300 tons of copper cathode in 2025. While production guidance moderates to 12,000-13,000 tons for 2026 as leach curves naturally decline after 14 years of operation, the site has consistently outperformed expectations with 13-14% higher copper recovery than forecast. This track record supports management's pursuit of license extension beyond the current 2034 expiration date.

The company's SASA lead-zinc mine in North Macedonia faced significant challenges in 2024 due to unexpected geological complexity at depth. Management implemented comprehensive restructuring including an 11% workforce reduction, enhanced geological monitoring, new mining methods, and strategic hedging of 50% of zinc production. Fourth quarter 2025 showed marked improvement, enabling raised guidance for 2026.

Looking forward, Central Asia Metals pursues dual-track growth through early-stage exploration across six Kazakhstan licenses and acquisition of pre-feasibility stage development assets trading at 0.25x net asset value. CEO Gavin Ferrar emphasized the company's proven construction and operational expertise as competitive advantages in advancing acquired projects while maintaining financial flexibility through a clean balance sheet and disciplined capital allocation.

Learn more: https://www.cruxinvestor.com/companies/central-asia-metals