Central Asia Metals PLC (AIM:CAML, OTC:CAMLF) shares climbed close to 10% in Wednesday's trade after it nearly doubled first-half earnings (EBITDA) and lifted its interim dividend to 8p as higher copper and zinc prices combined with increased production across all three of its principal metals.
Revenue rose 46% to $145.5 million in the six months to June, while EBITDA increased 89% to $75.5 million and its margin widened to 52% from 40%. Profit before tax climbed 203% to $59.3 million and adjusted free cash flow almost trebled to $46.8 million.
The average copper price received rose 39% to $13,171 per tonne and zinc increased 26% to $3,365, while lead slipped 4% to $1,891. Kounrad copper production increased 1% to 6,304 tonnes, with Sasa zinc-in-concentrate up 5% to 9,094 tonnes and lead-in-concentrate 6% higher at 13,312 tonnes.
CAML ended June with $97.2 million in cash and net cash of $96.3 million after completing its $10 million share buyback. Full-year production guidance was maintained, while completion of its proposed all-share acquisition of Cygnus Metals, valued at A$232 million when announced, remains scheduled for early October.
Peel Hunt, which reiterated its Buy rating and 205p price target, highlighted interim EBITDA of US$76 million, versus its US$69 million estimate, and free cash flow of US$47 million, ahead of the US$40 million forecast. Reported EPS of 22 US cents also beat the broker's 19-cent estimate.
The miner declared an 8p interim dividend, comfortably above Peel Hunt's 5p assumption, after setting the payout at 40% of free cash flow.
The broker said the EBITDA beat reflected stronger revenue from the SASA mine, where benefits from the life-of-mine review are beginning to emerge. Further efficiency gains are expected through the remainder of 2026 and into 2027, while a planned TSX listing alongside the Cygnus transaction could draw greater attention to what Peel Hunt sees as CAML's valuation opportunity.
In London, CAML shares were up 9.46% to 183.46p.
