REG - Central Asia Metals - 2024 Full-Year Results
20/03/2025 07:15
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RNS Number : 3871B Central Asia Metals PLC 20 March 2025
20 March 2025
Central Asia Metals Plc
(the 'Group', the 'Company' or 'CAML')
2024 Full-Year Results
Central Asia Metals Plc (AIM: CAML) is pleased to announce its full-year
results for the 12 months ended 31 December 2024 ('2024' or 'the period').
Financial summary
- Strong financial performance
o Group revenue of $214.4 million (2023 restated(1): $203.5 million)
o Group earnings before interest, tax, depreciation and amortisation
(EBITDA(2)) of $101.8 million (2023 restated: $101.0 million)
o EBITDA margin(2) of 47% (2023 restated: 50%)
o Group free cash flow (FCF(2)) of $65.7 million (2023 FCF: $57.5 million)
o 2024 full year dividend of 18 pence per share (2023: 18 pence)
- Flexible balance sheet
o Debt free
o At 31 December 2024, cash in the bank of $67.6 million(3) (31 December 2023:
$57.2 million)
o Providing a strong platform for growth
Operational summary
- Kounrad copper production of 13,439 tonnes (2023: 13,816
tonnes) and sales of 13,521 tonnes (2023: 13,687 tonnes)
- Sasa zinc-in-concentrate production of 18,572 tonnes (2023:
20,338 tonnes) and payable zinc sales of 15,839 tonnes (2023: 17,113 tonnes)
- Sasa lead-in-concentrate production of 26,617 tonnes (2023:
27,794 tonnes) and payable lead sales of 25,560 tonnes (2023: 26,298 tonnes)
- Two Group Lost Time Injuries (LTI); Group Lost Time Injury
Frequency Rate (LTIFR(4)) of 0.77 (2023: 0.40)
- Investment of $3.8 million in Aberdeen Minerals
('Aberdeen'), with results from first-phase drilling validating the
exploration model at the Arthrath project in Scotland
- Exploration licences secured in Kazakhstan through CAML
Exploration (CAML X), an 80%-owned subsidiary
- Achieved conformance with the Global Industry Standard on
Tailings Management (GISTM), ensuring tailings storage meets the highest
standards of international best practice
1. See Note 40 for details regarding the prior year restatement
2. See Financial Review section for definition of non-IFRS
alternative performance measures
3. The cash balance figure disclosed includes restricted cash
4. The rate per million person-hours worked
2025 outlook
- Production guidance for FY2025:
o copper of 13,000 to 14,000 tonnes
o zinc-in-concentrate of 19,000 to 21,000 tonnes
o lead-in-concentrate of 27,000 to 29,000 tonnes
- Capital expenditure in 2025 is expected to be in the range $18
million to $21 million
- Dry Stack Tailings (DST) Plant at Sasa scheduled to enter
operation in Q1 2025
- Second phase of drilling at Aberdeen's Arthrath project to
commence in Q2 2025
- Early-stage exploration by CAML X in Kazakhstan continues, plus
further licence applications expected in 2025
- Search for a material transaction to help build a project pipeline
remains a key focus
Gavin Ferrar, Chief Executive Officer, commented:
"CAML achieved another year of solid financial performance in 2024, reporting
EBITDA of $101.8 million, and again recording a good safety performance, with
no LTIs at our Kounrad in-situ dump leach, solvent extraction-electrowinning
operation in Kazakhstan and two at our Sasa underground zinc-lead mine in
North Macedonia.
"CAML's strong cash generation, which amounted to $65.7 million of adjusted
free cash flow, allowed the Board to propose a final dividend of 9 pence per
share. Assuming approval by shareholders, this will bring the total dividend
for 2024 to 18 pence per share, well above our stated dividend policy and
maintaining our industry-leading record of capital returns to shareholders.
Although above policy, we remain comfortable with this level of distribution
in the absence of a material transaction with which to grow the business,
though our determination to achieve such a step remains undiminished.
"2024 was a year of significant transition for CAML, both in our executive
leadership team and in our operations. At Sasa, in particular, we continued to
invest significant capital in the future of the business, extending the mine's
life to at least 2039 through the transition to new mining methods. The
investment has also involved optimising our ore haulage and other transport
arrangements, and moving to international best practice in tailings disposal.
The programme is now nearing the end of its main phase, and we look forward to
enjoying the fruits of the hard work of all those involved in the years to
come."
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 today
at 09:30 (GMT). The call can be accessed by dialling +44 (0) 33 0551 0200 (UK)
or +1 786 697 3501 (USA Local) and quoting the confirmation code 'CAML FY24'
when prompted by the operator, and the webcast can be accessed using the link:
https://brrmedia.news/CAML_FY_24 (https://brrmedia.news/CAML_FY_24)
The presentation will be available on the Company's website and there will be
a replay of the call available following the presentation
at https://www.centralasiametals.com (https://www.centralasiametals.com)
Presentation via Investor Meet Company
The Company will also hold a live presentation relating to the Full Year
Results 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 at any time during the live presentation via the Investor Meet
Company dashboard. 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
(https://www.investormeetcompany.com/central-asia-metals-plc/register-investor)
For further information contact:
Central Asia Metals Tel: +44 (0) 20 7898 9001
Gavin Ferrar
CEO
Louise Wrathall
CFO
Richard Morgan richard.morgan@centralasiametals.com
Investor Relations Manager
Peel Hunt (Nominated Adviser and Joint Broker) Tel: +44 (0) 20 7418 8900
Ross Allister
David McKeown
Emily Bhasin
BMO Capital Markets (Joint Broker) Tel: +44 (0) 20 7236 1010
Thomas Rider
Pascal Lussier Duquette
BlytheRay (PR Advisers) Tel: +44 (0) 20 7138 3204
Tim Blythe
Megan Ray
Note to editors:
Central Asia Metals, an AIM-quoted UK company based in London, owns 100% of
the Kounrad SX-EW copper project 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 28.4% 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
A year of transition
2024 was a year of significant transition for CAML, at both the corporate and
the operational level, underpinned as in previous years by a robust
performance from both of our operations.
The major corporate change was the succession in senior management, with Nigel
Robinson stepping down as Chief Executive Officer (CEO) after more than six
years to be replaced by Gavin Ferrar. Louise Wrathall has stepped up to fill
Gavin's previous role as Chief Financial Officer (CFO), whilst retaining her
existing responsibility for business development. The Board and I have every
confidence that Gavin and Louise will continue to take CAML forward, backed by
the strong teams in London and at our operations.
The main transition at the operational level has been the change in mining at
Sasa, where we now use methods that employ paste backfill. Apart from the
benefit of allowing Sasa to return a significant proportion of its tailings
back underground, the new mining methods allow much greater mining
flexibility. This enables the operation to exploit narrower sections of the
orebody both safely and profitably, maximising resource extraction and
extending the life of the mine.
Kounrad, meanwhile, has continued to be the bedrock of the Group, meeting its
production targets safely, efficiently and highly profitably. 2024 also
featured the first full year's contribution from Kounrad's Solar Power Plant,
which met approximately 14% of the operation's electricity demand, helping to
offset the impact of higher power prices.
Meeting our challenges
Any major operational change is bound to present challenges, and the
transition to new mining methods at Sasa has been no exception. I am proud of
the way our team at Sasa has met those challenges, some of which were
unforeseen, and maintained production in sometimes difficult circumstances.
Those challenges did result in Sasa's production for 2024 falling very
marginally below the guidance that we set at the start of the year, though we
are confident that the experience gained will stand the operation in good
stead in the years to come.
We also faced a number of external challenges in 2024, including continued
cost inflation. Prices for the metals we produce were, on average, higher than
in 2023, although they exhibited significant volatility. This was driven in
part by political developments, which featured an unprecedented number of
elections around the world, including in the UK and the US, and wars in the
Middle East and Ukraine.
On the positive side, the year also featured a major turn in the interest rate
cycle, albeit ending with perhaps not as rapid a decline in interest rates as
had been expected earlier in the year. Finally, towards the end of 2024, the
US election result raised fears of trade wars, which weighed on prices for
base metals and other industrial commodities towards the end of the year, with
markets looking forward to 2025 for some resolution of that uncertainty.
Delivering on our purpose
Amidst these various challenges, we never lose sight of our purpose, which is
to produce base metals essential for modern living, safely, profitably and
sustainably. The metals we produce have seldom been more important, owing to
their key uses in electrification, transport, construction and batteries. This
importance can only grow, as the world seeks to transform its energy
generation away from fossil fuels.
At CAML sustainability is not just about environmental stewardship and social
development, it also encompasses the financial sustainability of our business
for the benefit of all our stakeholders. To this end we are ever mindful of
our capital allocation.
During 2024 we invested $20.8 million in our existing operations,
predominantly at Sasa, and a further $3.8 million to take a 28.4% shareholding
in Aberdeen Minerals, a private company working on a highly promising
base-metals exploration project in northeast Scotland. We also spent $1.3
million in CAML X, our exploration subsidiary in Kazakhstan.
In addition to these significant investments in our future, the Board was
pleased to recommend a final dividend of 9p pence per share which, if approved
by shareholders, would bring the annual total to 18p pence per share,
representing approximately 63% of our annual free cash flow (FCF) of $65.7
million. This ratio of distribution to FCF is significantly higher than CAML's
stated policy of 30-50%, but we believe maintaining this level of return to
our shareholders is appropriate while we continue the search for a material
transaction with which to grow the business. That search remains a key
priority for our management team.
Sustainability
I have already mentioned one key area of sustainability, which is to ensure
the long-term financial health of our business through profitable production
and disciplined business development. That said, we never lose sight of our
wider responsibilities to the physical environment in which we operate.
To that end, the Board is particularly proud of a key achievement of the Group
in 2024: conformance with the Global Industry Standard on Tailings Management
(GISTM). This standard of international best practice has been adopted by CAML
on a voluntary basis, representing the culmination of a three‑year work
programme, and is independently audited by third‑party consultants.
Governance
Our Board remained stable through 2024, with the only significant changes
being those among the senior management team referenced earlier. Despite
stepping down as CEO, Nigel Robinson remains an Executive Director, though he
will transition to Non-Executive Director (NED) from 1 April 2025.
We remain committed as ever to strong corporate governance, as evidenced by
the work of our various Board Committees. Our Technical Committee made two
visits to Sasa during the year, one along with the entire Board, to see
first-hand the progress made on the Capital Projects. Our Audit Committee
continues to oversee the financial aspects of the business as well as
monitoring risk management.
The Remuneration Committee continues to ensure clear and measurable targets
for our Executive Directors and senior management team, which always
incorporate sustainability‑related targets, and our Nomination Committee
aims to ensure we attract, retain and develop appropriately talented
individuals for the future.
Our Sustainability Committee has continued to advise our site-based
foundations on how best to support their respective communities with
sustainable development initiatives, and has ensured Board oversight on all
other aspects under its remit.
Acknowledgements
It would be impossible for me to finish this annual statement without again
mentioning Nigel Robinson and the huge contribution he has made to CAML since
joining the Group in 2007 prior to its Initial Public Offering. The rest of
the Board would like to join me in thanking Nigel for his hard work and
dedication over the past 15 years, and we look forward to continuing to
benefit from his good judgement and experience in his new role as an NED.
I would also like to take this opportunity to thank Scott Yelland, who is
stepping down at the end of March as CAML's Chief Operating Officer. Scott has
played a key role in the integration of Sasa into CAML, and in the subsequent
Capital Projects programme, and I am delighted that he will remain a
consultant to the Group.
CHIEF EXECUTIVE OFFICER'S STATEMENT
I am delighted to be giving this, my first annual statement as CEO of CAML,
and I would like to thank the Board and our other stakeholders for the trust
they have placed in me. The role of CEO inevitably carries a high degree of
responsibility, but it also presents an exciting opportunity to lead the next
steps in the evolution of our business.
CAML's operations delivered another year of safe, reliable and profitable base
metals production in 2024. Kounrad achieved production firmly in the guidance
range we gave at the start of the year, whilst maintaining its exemplary
safety record.
Despite the challenges posed by the transition to new mining methods at Sasa,
the operation came within a fraction of meeting its guidance for the year, and
largely completed the capital investment programme designed to transform the
way we mine ore and store tailings. Sasa also achieved a commendable safety
performance in 2024, with just two LTIs, and continues to strive for zero
harm.
2024 financial overview
These reliable operating performances by our two operations underpinned a
solid financial performance, with revenue of $214.4 million and EBITDA of
$101.8 million. The resulting EBITDA margin of 47% reflects the financial
robustness of our production base, and the free cash flow this generated, at
$65.7 million, has allowed us to propose a final dividend of 9p.
This level of dividend exceeds our stated distribution policy, but we believe
it is appropriate for our shareholders to receive this significant level of
capital return while we continue the search for new opportunities with which
to build a pipeline of production and growth projects.
We also invested significantly in 2024 in the future of the business, spending
a total of $20.8 million on capital expenditure at our two operations,
including $6.4 million on the transition projects at Sasa. In addition, we
invested £3 million ($3.8 million) in Aberdeen Minerals, an unlisted company
exploring for base metals in northeast Scotland, for a 28.4% initial
shareholding, with warrants to invest a further £2 million if drilling
results are sufficiently promising.
Kounrad
Kounrad again demonstrated its reliability in 2024, with production of 13,439
tonnes of high-purity copper cathode. The operation continues to stand out
from its peers in two respects: its safety record, which at the end of 2024
stood at 2,420 days without an LTI, and its bottom-quartile C1 cash operating
costs of $0.80 per pound.
Despite being leached since operations at Kounrad commenced in 2012, the
Eastern Dumps continue to yield copper, contributing 27% of the 2024
production total. Our highly experienced site team continues to assess the
economics of leaching at the Eastern Dumps, and has confirmed that, assuming
current copper prices prevail, limited production from the East could continue
beyond 2025.
The balance of 2024 production came from the Western Dumps, which will remain
the mainstay for the rest of Kounrad's life. The Kounrad team remains focused
on maximising recoveries whilst controlling costs; against a background of
inflation, including higher reagent prices and wage increases which we have
awarded to help our employees address the cost of living.
A useful contributor to cost control is Kounrad's Solar Power Plant, which
enjoyed its first full year of operation in 2024, contributing approximately
14% of the operation's total power requirements. Conceived principally as a
means of helping CAML to achieve its goal of reducing greenhouse gas
emissions, the Solar Power Plant is now making a significant contribution to
cost control, offsetting part of the impact of recent increases in Kounrad's
electricity tariff.
Sasa
The key achievements at Sasa in 2024 included the first full year of operation
of the Paste Backfill (PBF) Plant and the completion in December of the
development of the Central Decline. Significant progress was also made on the
DST Plant, which we expect to become operational in Q1 2025.
Together, these projects are transforming Sasa into a more robust and flexible
operation, employing international best practice in tailings disposal, and
ensuring safe and profitable operations until at least 2039.
Sasa produced 18,572 tonnes of zinc-in-concentrate in 2024 and 26,617 tonnes
of lead-in-concentrate. These totals fell fractionally short of the guidance
we gave at the start of the year, as operations were constrained to some
degree by the challenges posed by the transition to new mining methods. Many
of those challenges we had anticipated, though others were more difficult to
predict. These included the filling of previously mined voids with paste fill
from Sasa's PBF Plant. Several of these voids proved larger and more complex
than expected, taking additional time to fill. From a positive perspective,
this has allowed additional tailings to be stored underground, further
contributing to one of the long-term benefits of the capital investment
programme, which is to avoid the need for a new conventional tailings storage
facility for the remainder of Sasa's planned life.
Despite 2024 being a year of transition for our production teams, Sasa
maintained its robust cost performance, returning a C1 cash operating cost of
$0.76 per pound of zinc-equivalent.
Sustainability
Our commitment to sustainability remains undiminished, not least because we
believe it represents good business practice whilst safeguarding the interests
of all our stakeholders.
I am therefore particularly proud of a key achievement during the year under
review. In July, CAML was independently confirmed to be in conformance with
the GISTM, an internationally accepted set of best practices for the
management of tailings storage facilities (TSFs), on a voluntary basis. TSF
management is not relevant to Kounrad, but does apply to Sasa, which is a
conventional mining operation.
Our goal in managing tailings is zero harm to people and the environment. The
GISTM covers standards and practices over the entire TSF lifecycle, and
requires auditing by independent third parties.
Work continued on our measurable goals in sustainability, in particular our
commitment to reduce Sasa's consumption of water abstracted from the
environment by 75% by the end of 2026 (compared with 2020). The focus is on
measures to re-use waste water produced by the mine, the PBF Plant, the DST
Plant and disused adits.
Our other key measurable target, a 50% reduction in the Group's Scope 1 and 2
greenhouse gas emissions by 2030 (compared with 2020), took a major step
forward in 2024 with the first full year of operation of Kounrad's Solar Power
Plant.
2024 also marked the second year in which the funding of the social
foundations in our two areas of operation represented 0.50% of their
respective revenues, double the previous rate. This funding allowed the
foundations to support a wide range of community projects, in the areas of
education and youth sport, the donation of medical equipment, and helping
those facing socio-economic challenges.
Outlook
Despite the uncertainties in international commodity markets stemming from the
onset of tariff-induced trade wars, we remain positive on the demand for our
products given their respective roles in the modern economy.
We expect Kounrad to produce between 13,000 and 14,000 tonnes of copper this
year, and Sasa to deliver 19,000 to 21,000 tonnes of zinc-in-concentrate and
27,000 to 29,000 tonnes of lead-in-concentrate. As ever, our teams will remain
focused on safety, productivity and cost control.
We look forward to the DST Plant at Sasa becoming operational in Q1 2025,
helping to reinforce our commitment to best practice in our tailings
management.
Completion of the DST Plant marks the end of our current capital investment
programme at Sasa (apart from normal sustaining capital expenditure), further
boosting our available future cash flow to fund growth.
To this end, we look forward to further positive progress with the exploration
programmes being conducted by Aberdeen and by our exploration subsidiary in
Kazakhstan, CAML X. The latter is focused on early‑stage work, and now has
two licences active with two more granted post period end.
Looking to the nearer term, we were again extremely active in 2024 evaluating
new material opportunities to complement our existing portfolio. We worked on
37 potential acquisitions, signed 13 non-disclosure agreements and undertook
six site visits. This activity will remain a key focus of our teams in the
year ahead.
OPERATIONAL REVIEW
Kazakhstan
Health & and safety
There were no LTIs at Kounrad in 2024, and by the end of the year the
operation had achieved 2,420 consecutive days LTI free.
Summary
Kounrad delivered another strong performance in 2024. The team delivered
production firmly in the middle of guidance at 13,439 tonnes of copper
cathode, taking cumulative production from the solvent
extraction-electrowinning (SX-EW) plant to more than 165,000 tonnes of cathode
since production commenced in 2012.
The new Solar Power Plant operated reliably during 2024, contributing
approximately 14% of Kounrad's total power consumption. During the summer
months, the Solar Power Plant's contribution averaged 18%.
Kounrad generated revenue of $121.8 million (2023 restated: $113.3 million)
and EBITDA of $88.8 million (2023: $82.3 million). The EBITDA margin of 73%
(2023 restated: 73%) reflects the low-cost nature of the operation.
Leaching operations
Both the Eastern and Western Dumps were leached during 2024, with the
production split being 27% and 73%, respectively.
At the Eastern Dumps, the average monthly area under leach was 20.7 hectares,
falling to approximately 14 hectares (all under cover) during the winter
periods. During the summer period, irrigation flows were maintained at
approximately 500 cubic metres per hour, whereas during winter the flow rate
was reduced to approximately 350 cubic metres per hour. Over the course of the
year, the average copper pick-up grade from the Eastern Dumps was 0.93 grammes
per litre.
Through the summer months, the team focused on irrigating the last remaining
fresh ore block in the Eastern Dumps, Dump 5-12, which comprises the fresh
material relocated as part of trench extension works in 2022 and the
previously dozed and levelled side slopes of Dump 7. The leaching response
from these specific areas was excellent, generating 2,649 tonnes of copper
through the course of the year.
During the year, the site operations team continued to review the leaching
characteristics and economic parameters of continued irrigation activity at
the East, now that 100% of fresh ore material has been subject to leaching of
varying intensity. The results have confirmed that, under prevailing copper
prices, the breakeven copper pick-up grade is estimated at just 0.25 grammes
per litre.
As such, under a scenario of rotational 'rest-rinse' irrigation patterns,
copper production from the East could continue for several years beyond 2025.
Additionally, such breakeven grades mean that previous plans only to operate
the East during the summer months will be set aside, and that winter leaching
will continue in future, to be economically assessed on a year-by-year basis.
At the Western Dumps, the focus of irrigation remained on parts of Dumps 16,
21, 22 and 1A, contributing 73% of the annual copper production for 2024. The
average daily area under irrigation at the Western Dumps was 33.8 hectares,
comprising both fresh and previously leached material.
The volume of raffinate pumped around the site averaged 1,290 cubic metres per
hour, virtually the same as in 2023. As in previous summer periods, a
proportion of the off-flow solutions from the Eastern Dumps were recycled
across to the Western Dumps, with the aim of maintaining broadly stable
pregnant leach solution (PLS) grades to the solvent extraction plant.
Application rates of solution to the dumps were maintained at a level of 2.46
litres per square metre per hour throughout the year, slightly higher than in
2023.
During the year, 400 metres of trench were excavated and lined with
high-density polyethylene (HDPE), northwards around the edge of Dump 16 to
reach Block 40. In addition, 940 metres of trench were extended along the edge
of Dump 21 towards Block 22, of which 500 metres were lined by the year end.
At this location, a temporary storage pond and pump house were installed in
preparation for leaching activity in this area during 2025. Minor trench
support work was undertaken along a 120 metre length of trench adjacent to
Dump 22.
Two bulldozers continued with levelling and shaping earthworks, solely on the
Western Dumps. Ore blocks 16-22 and 16-23 were fully prepared for winter
operation, requiring 164,000 square metres of HDPE cover to be installed,
along with the now standard double-strand dripper irrigation pipe.
During the year an additional 1.4 million metres of dripper piping and over
18,000 metres of larger-diameter solution distribution pipes were installed.
Significant regulatory, legal and technical works were undertaken in
connection with the necessary Land Allotment expansion and technical and
environmental approvals for the relocation of approximately 750,000 cubic
metres of edge material from Dump 15. This is necessary to allow installation
of the solution interceptor trench, adjacent to an existing railway spur owned
by a third party.
By year end, all technical and environmental aspects had been successfully
concluded, and the Land Allotment adjustment was moving forward, in
co-operation with the third party. This preparatory process is planned to be
completed during H1 2025. Discussions with potential mining contractors to
undertake the necessary works have already been held and earth-moving should
begin early in H2 2025.
SX-EW plant
The SX-EW plant continued to operate efficiently during 2024 and overall
operational availability throughout the year was 99.7%. This was 0.25
percentage points above availability in 2023, owing primarily to a reduced
number of power supply interruptions and improved maintenance planning during
scheduled shutdowns.
With the average Western Dumps in-situ copper grade at approximately 0.1% and
the Eastern Dumps all having been put under leach, the average PLS copper
grade declined to 1.99 grammes per litre in 2024, approximately 0.06 grammes
per litre lower than in 2023.
To mitigate this decline, solution flow rates through the SX increased by
almost 3% compared with 2023, to 1,103 cubic metres per hour. This flow rate
is considered the maximum practicable without significantly increasing the
losses of the main organic extraction reagents, which can have negative
impacts both in leaching and on the electrowinning (EW) aspects of the
operation, as well as increasing unit costs.
It was necessary to take the SX strong-electrolyte tank offline through the
summer period, to undertake necessary repairs and replacement of the internal
lining with a more robust PVC system.
Operations within the EW sections were steady throughout the year, with the
teams focusing on minimising water and reagent consumption in the off-gas
scrubber units, with positive results, whilst maintaining high efficiency
levels. Inspections during the bi-annual engineering shutdowns identified
corrosion in both the EW1 and EW2 electrolyte tanks, which were successfully
repaired using the HDPE lining system.
As scheduled, 1,064 new anode plates were replaced in rows 1-25 of the EW1
tank house, with further renewals planned for H1 2025. A technical review of
the longevity and quality of the stainless-steel mother plates used in the EW
circuits indicated that renewal of at least 40% of the sheets should be
scheduled for H1 2025, with the balance to be completed in 2026.
Kounrad maintained high chemical purity of the copper cathode produced during
the year, and continues to be proactive and to impose tight controls in this
regard.
The site management team continued its emphasis on reagent consumption and
controls. In line with the increased PLS flow rate, the consumption of LIX and
Escaid organic reagents increased to 73 parts per million per cubic metre in
2024, from 65 parts per million per cubic metre in the previous year.
Water consumption for leaching and SX-EW operations totalled 356,272 cubic
metres, 12% less than in 2023.
Overall power consumption at Kounrad in 2024 was 58.7 million kilowatt-hours,
but with the contribution of the Solar Power Plant the total amount of
electricity purchased from the grid supply was 8.1 million kilowatt-hours less
than in 2023.
Copper sales
The Group continues to sell most of its copper production through offtake
arrangements with Traxys. Throughout the year, the quality of CAML's copper
cathode product was maintained at high levels. Regular in-house and
independent metallurgical analyses have consistently reported 2024 copper
purity of 99.998%.
Solar Power Plant
The Solar Power Plant, which has a capacity of 4.77 megawatts, operated
without interruption during 2024, generating 8.1 million kilowatt-hours,
equivalent to 14% of Kounrad's total power consumption for the year.
During the months April to September the facility contributed an average of
18% of the total power requirement, with the lowest generation being seen in
December at 5%.
The Solar Power Plant has direct operating costs of just over $68,000 per year
(of which 75% is salary related), resulting in a direct production cost of
electricity generated in 2024 at 0.84 cents per kilowatt‑hour. If
depreciation and other costs are considered, then the total unit cost is
approximately 4 cents per kilowatt‑hour, with project payback estimated at
under eight years. This compares with an average of 6 cents per
kilowatt‑hour for grid power.
2025 production guidance
The guidance for Kounrad's copper cathode production in 2025 is between 13,000
and 14,000 tonnes.
North Macedonia
Health & and safety
There were two LTIs at Sasa in 2024.
Summary
In 2024, Sasa mined 762,456 tonnes and processed 760,514 tonnes, with an
average head grade of 2.87% zinc and 3.71% lead. The average metallurgical
recoveries for these metals were 85.2% and 94.4%, respectively. Sasa produces
a zinc concentrate and a separate lead concentrate.
Total production for 2024 comprised 36,967 tonnes of zinc concentrate at a
grade of 50.2% and 37,596 tonnes of lead concentrate at a grade of 70.8%.
Sasa typically receives from smelters approximately 84% of the value of its
zinc-in-concentrate and approximately 95% of the value of its
lead-in-concentrate. Accordingly, 2024 payable production amounted to 15,614
tonnes of zinc and 25,286 tonnes of lead.
Payable base-metal-in-concentrate sales for 2024 were 15,839 tonnes of zinc
and 25,560 tonnes of lead respectively.
During 2024, Sasa sold 379,010 ounces of payable silver to Osisko Gold
Royalties, in accordance with its streaming agreement, for which it received
revenue of approximately $6 per ounce.
Sasa generated revenue of $92.6 million (2023: $91.1 million), resulting in
EBITDA of $32.2 million (2023: $35.7 million). Capital expenditure of $6.4
million (2023: $22.7 million) represents the final year of major expenditure
on Sasa's Capital Projects, including the transition to paste-fill mining and
dry-stack tailings, designed to ensure the operation's future until at least
2039.
Production statistics
Units 2024 2023 2022
Ore mined t 762,456 805,621 806,069
Plant feed t 760,514 805,819 806,653
Zinc grade % 2.87 2.97 3.15
Zinc recovery % 85.2 85.0 84.6
Lead grade % 3.71 3.70 3.63
Lead recovery % 94.4 93.1 93.4
Zinc concentrate t (dry) 36,967 40,226 42,824
Grade % 50.2 50.6 50.1
Contained zinc t 18,572 20,338 21,473
Lead concentrate t (dry) 37,595 39,136 38,439
Grade % 70.8 71.0 71.2
Contained lead t 26,617 27,794 27,354
Mining
Ore was mined during the year using a combination of sub-level caving,
cut-and-fill mining and long-hole stoping, combined with the use of PBF, from
the 990 level, 910 level and 830 level production areas. The ore and waste
from the underground operations are transported to surface via a combination
of hoisting via the Golema Reka shaft and, increasingly, the newly-completed
Central Decline, using a fleet of 20-tonne haul trucks.
The average combined zinc and lead grade of the ore mined was 6.57%, compared
with 6.67% in 2023.
Ore development across the three working areas totalled 7,393 metres, a 12%
increase compared with 2023, including long-hole stoping development in the
990 level and 910 level areas.
Waste development for the year totalled 3,424 metres, approximately 25% more
than in 2023. This generated 137,059 tonnes of waste from a combination of
internal ramp access and crosscuts to the orebody, raise development and
development of the Central Decline.
The mine produced a total of 899,515 tonnes of ore and waste during the year,
approximately 1% less than in 2023.
Maintenance
Development of a computerised maintenance management system for surface
equipment was under way during 2024, with approximately 30% of the equipment
entered into the system by the end of the year and scheduled to be fully
completed during 2025. The computerised maintenance system for mobile
equipment is already fully operational.
As part of the general move to modernise facilities and procedures, a new
underground Wi-Fi system has also been installed to improve communications,
productivity and safety.
During the year, additional equipment was acquired to help maintain production
and to improve efficiency:
- A Diamec 232 drilling rig for underground exploration drilling.
- Two Epiroc underground trucks, an МТ436B and an МТ2200
(MT436B on loan from Epiroc to test use of a larger truck in the Central
Decline).
- An Epiroc S1D Boomer production drill rig to replace old
equipment.
- An Epiroc ST7 underground loader to replace old equipment.
- A CAT 950GC surface loader for loading concentrate and waste
rock from underground.
- Two Bobcat S76 loaders, smaller units for production logistics,
such as cleaning and maintaining roads.
Processing
Sasa processed 760,514 tonnes of ore during 2024, 4.3% under the amount
planned and 5.6% less than the total processed in 2023. The shortfall compared
with the production plan was due to the lower tonnage of ore produced by the
mine, as new mining areas were developed as part of the transition to the new
mining methods. Overall plant availability was 92.9%.
A significant number of improvement projects were implemented during the year
in the flotation section:
- The asset integrity project to improve and/or replace critical
infrastructure by the examination of supporting steel structures across the
flotation, crushing and milling circuits. This work will continue in 2025.
- The water security and re-use project, developed for water
supply to the flotation plant. Changes are being implemented to re-use in the
processing plant wastewater from the mine, the PBF Plant, the DST Plant and
from old adits.
- The replacement of the electrical management system in the
crushing plant was completed.
- A ventilation system was installed in the flotation section.
- Replacement of two tanks for the preparation of reagents was
carried out.
- A sprinkler system for fire extinguishing on the conveyor belts
in the crushing plant was installed.
The management of the TSFs at Sasa was maintained to a high standard during
2024. In addition, in July 2024 CAML announced its conformance with the GISTM,
an internationally accepted set of best practices for the management of TSFs.
The goal of managing tailings is zero harm to people and the environment.
Although not legally required to do so, in 2021 CAML took the decision to
adopt the GISTM on a voluntary basis.
The GISTM covers standards and practices over the entire TSF lifecycle, and
requires auditing. CAML elected to have Sasa's GISTM audit conducted by an
independent third party, Knight Piésold, which confirmed that 92% of the
requirements were in conformance, and the remaining 8% were met with a plan in
place (thus constituting overall conformance).
Extension of the rock toe at the downstream slope of TSF4 continued during
2024. By the end of the year a total of 113,304 cubic metres of waste rock had
been placed.
During the year additional piezometers were installed in the seismic
monitoring system for the 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
2025.
The rehabilitation of TSF3.2 continued during 2024, with the placing of waste
rock from the underground mine, and was completed by year end.
Exploration
A total of 7,127 metres of advance drilling was completed during the year
across the five working areas, on the 750 level, 800 level, 830 level, 910
level and 990 level, to provide additional information on the grade and
thickness of the three orebodies. (Note: levels are numbered in metres above a
zero datum below the orebodies.)
Exploration drilling included 2,747 metres completed below the 750 level to
improve the geological understanding of the mineralisation at Svinja Reka at
depth.
In addition, 1,458 metres of exploration drilling in five holes were completed
from the new Central Decline at Kozja Reka North to improve understanding of
the geology at depth and to test hanging wall targets. These holes intersected
zones of mineralisation down to at least the 550 level, demonstrating the
extension of the mineralisation at depth. However, no economic mineralisation
was intersected in these holes.
In April 2024, two structural geologists from Tect Geological Consulting
visited Sasa to conduct an independent review of the structural geology. The
review findings have enhanced our understanding of the structural geology,
which has led to improvements in the geological modelling and Mineral Resource
estimation. In addition, the study has delineated targets for further
exploration.
Capital Projects
The transition to using paste backfill at Sasa is designed to create a safer
and more sustainable underground mining operation for the long term and to
improve the overall recovery of metal from the orebody. Investments have been
made in three key areas:
- a PBF Plant and associated surface and underground reticulation;
- a DST Plant and associated landform; and
- a new Central Decline.
The PBF Plant and associated infrastructure have been completed, and the plant
has been operating since late 2023. By the end of December 2024, a total of
240,000 tonnes of paste had been placed underground. The tailings content in
this fill represented approximately one third of the total tailings generated
over the period.
During 2024, the construction and equipment installation of the DST Plant were
substantially completed, followed in Q1 2025 by the automation system prior to
entering operation. An area of the DST landform of 20,000 square metres has
been prepared for dry tailings storage. The landform will be extended during
2025 and beyond, as required.
A key benefit of the transition to paste backfill mining is the improved
storage of tailings. Previously, all tailings generated from Sasa's processing
plant were stored in TSF4. For the remaining life of the mine, tailings will
be stored in the following three locations in order of priority: underground
as paste backfill; on the DST landform; and the balance in TSF4.
The development of the Central Decline was completed in December 2024 by its
connection with the 750 level. The decline connects the surface with the 910
level, the 830 level, the 800 level and the 750 level. During 2024, 1,125
metres were completed, bringing total development for the Central Decline to
3,735 metres. In 2024, the section for transport of ore from the 910 level
became operational, and the other section, to the 750 level, entered operation
in Q1 2025.
2025 production guidance
CAML has maintained its ore mined guidance year‑on-year at 790,000 to
810,000 tonnes. Expected metal production in 2025 is 19,000 to 21,000 tonnes
of zinc-in-concentrate and 27,000 to 29,000 tonnes of lead-in-concentrate.
Sasa Mineral Resources, Ore Reserves and Life of Mine (LoM)
During 2024, the technical services team updated Sasa's Mineral Resource
Estimate (MRE) for the Svinja Reka and Golema Reka deposits and the Ore
Reserves 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,
treatment charges and transport costs used in the Net Smelter Return (NSR)
calculation. Sasa's MRE and Ore Reserves are shown in the following tables.
Total Svinja Reka Mineral Resources have increased to 11.8 million tonnes at
grades of 4.2% lead and 3.0% zinc (2023: 11.5 million tonnes at grades of 4.3%
lead and 2.9% zinc), owing to additions resulting from drilling in 2024 more
than offsetting depletion from mining.
Total Golema Reka Mineral Resources are unchanged at 9.3 million tonnes at
grades of 3.8% lead and 1.2% zinc.
The Svinja Reka 2024 Ore Reserve is 9.2 million tonnes at grades of 3.4% lead
and 2.4% zinc (2023: 9.0 million tonnes at grades of 4.0% lead and 2.6% zinc).
Mining depletion of approximately 0.8 million tonnes has been offset by design
changes associated with increased metal prices and additional geotechnical
data.
Based on the latest Mineral Resources and Ore Reserves, CAML expects Sasa to
maintain annual production rates of between 800,000 - 830,000 tonnes per annum
for an expected LoM of 14 years until 2039.
Approximately 10,000 metres of exploration drilling are planned at Sasa for
2025, which will focus on surface and underground drilling of the Svinja Reka
deposit from the 750 level to explore for down-dip and northern extensions of
the previously mined mineralisation. In addition, a model of the structural
geology of the Sasa area will assist with the definition of exploration
targets.
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 as of 31 December 2024. NSR cut-off values for each
mining method were applied as below.
Grades Contained metal
Classification Deposit Mt Pb (%) Zn (%) Ag (g/t) Pb (kt) Zn (kt) Ag (koz)
Indicated Mineral Svinja Reka 9.5 4.3 3.1 31.1 409 292 9,540
Resources
Golema Reka 1.9 4.0 1.3 13.5 77 26 841
Total Indicated
11.5 4.2 2.8 28.1 487 318 10,381
Inferred Mineral Svinja Reka 2.3 3.7 2.6 40.8 83 59 2,960
Resources
Golema Reka 7.3 3.7 1.2 12.8 274 87 3,021
Total Inferred 9.6 3.7 1.5 19.4 357 146 5,981
Total Indicated and Inferred Resources 21.1 4.0 2.2 24.2 843 464 16,362
Notes
The Mineral Resources and Ore Reserves 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).
Mineral Resources have an effective date of 31 December 2024.
The Competent Person for the declaration of Mineral Resources 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 35 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 in the Annual Report 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.
Mineral Resources are reported inclusive of Ore Reserves.
The Svinja Reka Mineral Resource is reported based on an NSR cut-off of $46
per tonne for sub-level caving, and $53 per tonne for cut-and-fill and
long-hole stoping. These cut-offs are based on metal price assumptions of
$2,933 per tonne for zinc, $2,300 per tonne for lead and $26 per ounce for
silver (these being consistent with the prices assumed for the Mineral
Resource in December 2023 in order to include mineralisation that has
'reasonable prospects for eventual economic exploitation' but which is not
economic assuming the prices used for reporting the Ore Reserve).
The Golema Reka Mineral Resource is reported based on a NSR cut-off of $53 per
tonne for cut-and-fill stoping.
Mineral Resources are reported as undiluted. No mining recovery has been
applied in the Statement.
Tonnages are reported in metric units, grades in percent (%) or grams 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 has been prepared by Sasa's technical
services team based on a LoM plan that includes a transition from the
sub-level caving mining method to cut-and-fill and long-hole stoping with
paste backfill. The Ore Reserve Statement considers the updated Indicated
Resources constrained within a practical and economic mine design only. NSR
cut-off values and design modifying factors for each mining method were
applied as below.
Grades Contained metal
Svinja Reka Mt Pb (%) Zn (%) Ag (g/t) Pb (kt) Zn (kt) Ag (koz)
Probable 9.2 3.4 2.4 26.5 316 223 7,800
Total 9.2 3.4 2.4 26.5 316 223 7,800
Notes
Ore Reserves have an effective date of 31 December 2024.
The Competent Person who has reviewed the Ore Reserves is Scott Yelland, CEng,
FIMMM, MSc, who is a full-time employee and Chief Operating Officer of CAML.
He is a mining engineer with over 42 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 $46 per tonne for sub-level
caving, $53 per tonne for cut-and-fill and long-hole stoping and $37 per tonne
for the ore development drives which are required to establish stope access.
These cut-offs are based on metal price assumptions of $2,750 per tonne for
zinc, $2,081 per tonne for lead and $23.90 per ounce for silver.
Ore Reserves have been estimated utilising 3D-modelling software (Deswik) and
are reported within practical mining shapes.
Rounding may result in apparent summation differences between tonnes, grade
and contained metal content.
BUSINESS DEVELOPMENT
CAML continued to place a high priority on its business development efforts
during 2024, both in seeking acquisition opportunities offering existing or
near-term cash flow and with respect to the Company's longer-term exploration
investments.
The team was pleased to conclude the Aberdeen Minerals investment and progress
its CAML X activities during the year. The opportunities CAML reviewed during
2024 were all evaluated against the Company's business development strategy as
previously outlined.
Material opportunities
The CAML team remains focused on identifying opportunities that have the
potential to make a material contribution to the growth of the business,
whilst recognising the need for such developments to be accretive to earnings
and valuation.
During 2024, a total of 37 potential acquisitions were appraised, 13
non-disclosure agreements were signed and six site visits undertaken. Within
this activity, the business development team spent significant time on a
number of opportunities within the Group's current areas of operation, as well
as potential transactions in other jurisdictions, resulting in a number of
formal offers being submitted.
The Company enters 2025 with a pipeline of opportunities to pursue and remains
focused on developing the business for the long term.
CAML X
CAML X undertook its first full reconnaissance exploration season during the
summer of 2024, which generated a number of prospective targets, following
which the team focused on additional licence applications during the remainder
of H2 2024.
Two of these applications were successful in 2024, with another two granted
post period end. Together, these licences give CAML X a strong foothold in two
prospective geological regions: North Balkhash and the Chingiz-Tarbagatay
belts.
During Q4 2024, the team identified other prospective Kazakh base-metal
project acquisition opportunities through local relationships, two of which
are being appraised.
The 2025 strategy is for CAML X to commence exploration on its licensed
project areas, with soil geochemistry, and magnetic and induced-polarisation
geophysics expected to be undertaken. Desk-based work in two other mineralised
belts will continue during 2025.
The CAML X team has also expanded into assisting CAML in other technical
areas. During Q4 2024, the team visited North Macedonia to provide an
additional viewpoint on regional exploration prospectivity around the Sasa
mine.
Aberdeen Minerals
CAML completed its initial investment into Aberdeen Minerals on 31 May 2024,
and now owns 28.4% of that company. CAML's investment represents a low-cost
entry into a focused junior exploration company which is actively exploring
the Arthrath project in Aberdeenshire, northeast Scotland, and several
promising targets in the underexplored surrounding district.
The investment into Aberdeen is funding a significant drilling programme being
undertaken in several phases. The first phase (seven holes ranging between 243
metres and 510 metres in depth and totalling 2,682 metres) was completed
between July and October 2024, as well as borehole electromagnetic geophysical
surveys, which maximise the data gained from each hole.
The results have been encouraging, with extensive intersections of
net-textured sulphides and some areas of massive sulphides identified. The
results have validated the exploration model and confirm the potential for
higher-grade nickel-copper sulphide traps within depth extensions to a
prospective conduit system. In parallel, updated geological modelling is in
progress, with the next round of drilling due to commence in Q2 2025.
FINANCIAL REVIEW
CAML has maintained a consistent financial performance in 2024, achieving
strong earnings before interest, tax, depreciation and amortisation (EBITDA)
and continuing to generate robust cash flows. These results have been driven
by higher revenue, reflecting generally higher commodity prices and the
overall reliability of the Group's operations. They also reflect an increase
in costs associated with the full operation of Sasa's Paste Backfill (PBF)
Plant, continued inflationary pressures, as well as continued exploration and
business development initiatives. The Company continues to provide returns to
its shareholders, with a final dividend proposed of 9 pence bringing the full
year dividend to 18 pence for 2024.
The Group approaches the completion of the transition to paste-fill mining
with the conclusion of development of the Central Decline in 2024 and the Dry
Stack Tailings (DST) Plant scheduled to become operational in Q1 2025. These
achievements reflect the significant capital investment throughout the past
few years. Construction of the DST landform will continue as capacity is
expanded, enabling an increasing volume of dry tailings to be stored.
The Group remains effectively debt free, with a strong balance sheet, ending
2024 with cash in the bank of $67.6 million.
Market overview
In 2024, CAML's share price fluctuated between £1.50 and £2.30, closing the
year at £1.57, which reflects the broader challenges faced by the mining
sector as a whole, including fluctuating commodity prices, the strong US
dollar towards the end of the year and the outlook for global trade.
Macroeconomic environment
Inflation
Although inflation in the countries in which the Group operates remained
elevated in 2024, primarily driven by a continued surge in food prices and
energy in Kazakhstan, there was a slowdown compared with 2023. Inflation rates
for the year averaged 8.6% in Kazakhstan and 3.5% in North Macedonia.
Currency fluctuations
The functional currencies of the Group's main operations are the North
Macedonian denar (MKD), which is pegged to the euro, for Sasa and the Kazakh
tenge (KZT) for Kounrad, and therefore fluctuations in the exchange rates of
these currencies affect the Group's financial results. Towards the end of the
year, the MKD and the KZT both weakened against the US dollar (USD), by 6% and
15% respectively, and this had a positive impact on the cost base measured in
USD.
Commodity prices
The prices of the base metals the Group produces, copper, zinc and lead, are
highly dependent on global economic conditions, including supply and demand
dynamics. The fluctuation in prices directly affects the Group's
profitability, which can have an impact on the Company's share price.
Copper prices
In 2024, copper prices were volatile, reaching a record high of over $11,000
per tonne in May, reflecting higher demand from the energy sector, supply
disruptions, the prospects of cuts in US interest rates and restricted
smelting capacity in China. Prices subsequently retreated, closing the year at
$8,706 per tonne. Copper's critical role in electrification, which lies at the
heart of the transition to a low-carbon economy, and potential supply
constraints, suggest a bullish market outlook in the long term.
Zinc prices
Zinc was one of the best-performing of base metals in 2024, with prices
peaking above $3,200 per tonne in October, attributed to supply pressures
including production disruptions at key mines. Zinc ended 2024 at $2,900 per
tonne.
Lead prices
Lead prices remained relatively stable in 2024 compared with the preceding
year, averaging around $2,020 per tonne. The price ended the year at $1,940
per tonne, having come under pressure from the strength in the US dollar.
Treatment charges
Spot treatment charges (TCs) for zinc reduced during 2024, indicating a
tightening of the concentrate market. The outlook for treatment charges for
both lead and zinc in 2025 is positive, with zinc TCs at historically low
levels owing to continued disruption of concentrate supply.
Performance overview
Restatement following an FRC enquiry
In October 2024, the Company received a letter from the Financial Reporting
Council (FRC) requesting further information in relation to the 2023 Annual
Report and Accounts. As a result of the FRC's review, two restatements have
been made to the 2023 financial information. The changes in the restated 2023
financial information have been reflected in the 2024 financial information
and the Group will continue to follow this approach going forward. The first
involves an amendment to how revenue is presented on the income statement,
reclassifying $8.2 million of silver purchases for the silver stream
arrangement from a revenue deduction to cost of sales. It is important to note
that this reclassification does not affect gross profit, but it does impact
the EBITDA margin given the amendments to revenue.
Additionally, effective 1 January 2023, the Group has modified its share-based
payments from equity-settled to cash-settled. During 2023, the Company settled
a number of awards in cash, which is deemed sufficient to have established a
past practice of cash settlement. As a result of this modification, a
liability of $12.5 million has been recognised as at 31 December 2023,
representing the fair value of the cash-settled share-based payments. The
change in treatment results in a reduction in non-cash administration
expenses, as the previously equity-settled share-based payments are now not
included within this component, which effectively improves CAML's EBITDA. The
fair value adjustments of this new liability are shown separately on the
income statement. See Note 40 for more details on these restatements.
Revenue
CAML's 2024 revenue was up 5% versus 2023 to $214.4 million (2023 restated:
$203.5 million). The increase was primarily driven by increased commodity
prices for copper and zinc, which rose by 9% and 8% respectively, as well as
reduced TCs for zinc owing to a tightening in the concentrate market.
EBITDA and earnings per share
The Group generated a consistent EBITDA of $101.8 million (2023 restated:
$101.0 million), at an EBITDA margin of 47% (2023 restated: 50%) reflecting
the higher revenue as well as an increase in the cost base. This increase in
costs was associated with the full operation of Sasa's PBF Plant, as well as
corporate exploration and business development initiatives.
Kounrad's 2024 EBITDA improved to $88.8 million (2023: $82.3 million), with a
consistent margin of 73% (2023 restated: 73%). Kounrad's increased EBITDA
reflects higher revenue, with stronger copper prices partially offset by an
increase in costs owing to elevated payroll expenses and reagent consumption.
Sasa's 2024 EBITDA was $32.2 million (2023: $35.7 million), with a margin of
35% (2023 restated: 40%). The margin decline was due predominantly to higher
costs associated with the full operation of the PBF Plant and payroll
increases owing to a greater headcount and a rise in salaries.
Group profit before tax from continuing operations increased by 18% versus
2023, to $76.7 million (2023 restated: $64.9 million), reflecting an increase
in profitability driven by a positive foreign-exchange swing of $9.0 million
caused by the strengthening of the US dollar against the local currencies. EPS
from continuing operations was therefore higher than the previous year, at
28.90 cents (2023 restated: 20.40 cents). Additionally, EPS has increased due
to a reduced weighted average number of shares versus 2023 to reflect that the
employee benefit trust (EBT) is now being consolidated into the Group and
therefore these shares are excluded, in line with treasury shares.
Free cash flow
CAML is highly cash generative and delivered increased free cash flow of $65.7
million in 2024 (2023: $57.5 million), arising from a reduction in CIT paid of
$7.9 million. Tax instalments are based on the previous year's taxation
charge, resulting in overpayments in 2023 owing to the higher profits in 2022
for both Kounrad and Sasa. This has led to a healthy year-end balance of $67.6
million (2023: $57.1 million) cash in the bank, enabling the Board to propose
a final dividend of 9 pence.
Business development activities
The Group continued to make significant investments in its future growth
through key projects. During the year, CAML incurred $1.0 million of costs in
target-generative exploration work, and invested $3.8 million in cash for a
28.4% interest in Aberdeen Minerals ('Aberdeen'). Use of these funds is
predominantly for exploration drilling, and Aberdeen is classified as an
associate for accounting purposes. Additionally, business development costs of
$1.9 million (2023: $0.9 million) were incurred as the Group continues to
evaluate new growth opportunities.
Income statement
Revenue
CAML generated 2024 revenue of $214.4 million (2023 restated: $203.5 million)
which is reported after the deduction of zinc and lead TCs and offtake fees.
Kounrad
Kounrad achieved revenue of $121.8 million for 2024 (2023 restated: $113.3
million). This improved performance is attributable to the higher average
copper price received, up 9% to $9,219 per tonne (2023: 8,466 per tonne), more
than offsetting the slightly lower sales of 13,521 tonnes (2023: 13,687
tonnes). Sales were made under the Group's offtake arrangement with Traxys,
which has been extended on a one-year rolling basis from 1 January 2025 and
commits a minimum of 95% of Kounrad's annual production. The offtake fees for
Kounrad remained consistent at $3.0 million (2023: $3.0 million) due to a
similar level of international sales.
Sasa
Sasa realised revenue of $92.6 million in 2024 (2023 restated: $90.1 million),
with the improved performance driven by an 8% increase in the average price
received for zinc, which rose to $2,766 per tonne (2023: $2,552 per tonne).
Additionally, there were reduced TCs which amounted to $14.8 million (2023:
$17.6 million), owing to the tightening in the zinc concentrate market.
Looking ahead, zinc and lead TCs have been negotiated for the period from
April 2025 to April 2026 at historically low levels owing to shortages of
concentrates.
These positive factors were partially offset by a 3% decrease in the price
received for lead, which averaged $2,023 per tonne (2023: $2,085 per tonne).
Additionally, there was a decrease in payable zinc‑in‑concentrate to
15,839 tonnes (2023: 17,113 tonnes) and lead-in-concentrate to 25,560 tonnes
(2023: 26,298 tonnes), owing to a reduction in ore processed.
The offtake fees for Sasa remained consistent at $1.0 million (2023: $1.0
million). Zinc and lead concentrate sales agreements have been extended with
Traxys on a one‑year rolling basis for 100% of Sasa's production.
Sasa has an existing streaming agreement with Osisko Gold Royalties whereby
Sasa receives approximately $6 per ounce for its silver production for the
life of the mine.
Cost of sales
The Group cost of sales for the year was $108.8 million (2023 restated: $101.1
million). This figure includes depreciation and amortisation charges of $26.3
million (2023: $27.4 million). The increase in cost of sales was due to higher
costs associated with the full operation of Sasa's PBF Plant as well as local
inflationary pressures from ensuring employee remuneration remains
competitive. From an overall perspective, the Group continues to focus on a
range of cost-control measures.
Kounrad
Kounrad's cost of sales for 2024 increased to $34.0 million (2023: $31.2
million). This was caused by several factors, including a $0.8 million rise in
payroll costs driven by inflation-related salary increases, a $0.5 million
increase for key reagents for copper production and an additional $0.4 million
for depreciation, including an element recognised on the Solar Power Plant
which was completed at the end of 2023.
The Mineral Extraction Tax (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 remained stable at $10.3 million (2023: $10.2 million).
Sasa
Sasa's cost of sales increased by 7% in 2024 compared with the previous year,
reaching $74.8 million (2023 restated: $69.9 million). The primary factor
contributing to this increase was the full operation of the PBF Plant during
2024, leading to a rise in the cost of technical materials by $1.4 million. In
particular this included the consumption of cement used in the backfilling
process, and the use of pipes and connectors for the backfill reticulation
system, as Sasa transitioned to paste-fill mining methods.
Additionally, Sasa faced some general cost pressure, including an increase in
salaries of $1.4 million owing to a greater headcount for the mining
transition phase and higher wages agreed with employees together with the
introduction of an underground allowance.
Concession fees for 2024 were reduced to $2.4 million (2023: $2.5 million),
owing to Sasa's lower metal production. This tax was calculated at the rate of
2% (2023: 2%) on the value of metal recovered during the year. Subsequent to
the year-end, the concession fee rate increased to 4%, effective from 1
January 2025. Finally, silver purchases on the open market used to satisfy the
silver stream arrangement increased to $10.1 million (2023: $8.2 million) as
a result of the increased silver price.
Distribution and selling costs
There was a decrease in distribution and selling costs to $2.1 million (2023:
$2.8 million) owing to significantly reduced freight and forwarding costs
incurred. This reduction resulted from an increase in European sales from
Sasa, compared with higher shipping costs to some customers further afield in
2023.
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 below.
The methodology of Sasa C1 and on-site unit cost has been amended with the
comparative restated to exclude intercompany management fees as these are not
considered direct costs of production.
Kounrad
Kounrad's 2024 C1 cash cost of copper production was $0.80 per pound (2023:
$0.74 per pound), based on a C1 cash cost of $23.7 million (2023: $22.6
million), which remains amongst the lowest in the industry. The increase in
the C1 unit cash cost compared with 2023 was primarily due to higher operating
costs resulting from employee pay increases, higher reagent costs and lower
production.
Sasa
Sasa's on-site operating costs increased by 9% to $49.2 million (2023
restated: $45.2 million). The on-site unit cost increased by 15% to $64.6 per
tonne (2023: restated $56.2 per tonne) owing to the reduction in mined tonnage
for the period as well as the additional costs for the full operation of the
PBF Plant and higher costs of salaries.
Sasa's total C1 cash cost base, including realisation costs, increased to
$67.1 million (2023 restated: $66.6 million) driven by higher costs, partially
offset by lower TCs, and Sasa's C1 zinc equivalent cash cost of production
increased to $0.76 per pound (2023 restated: $0.66 per pound). The $0.10 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 its
copper‑equivalent.
The Group's 2024 C1 copper-equivalent cash cost was $1.73 per pound (2023
restated: $1.59 per pound). This is calculated based on Sasa's 2024 zinc and
lead payable production, added to Kounrad's 2024 copper production of 13,439
tonnes (2023: 13,816 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 a fully inclusive cost that 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 $2.54 per pound (2023 restated: $2.21 per pound). The increase was
due to higher C1 costs as per above as well as additional sustaining capex.
Administrative expenses
During the year, administrative expenses increased to $28.8 million (2023
restated: $26.7 million). The increase largely reflects the Group's business
development activities of $1.9 million (2023: $0.9 million) for due diligence
on new opportunities, plus additional costs of $1.0 million for the
newly-formed exploration team in Kazakhstan, CAML X. The latter was focused on
target generation during the period, and thus the bulk of its expenditure was
expensed rather than capitalised.
There was also $0.4 million in employer's national insurance contributions
related to exercised share options, along with a higher non-cash accrual for
employer's national insurance liability. There were additional corporate costs
of $0.4 million to bring Sasa into conformance with the Global Industry
Standard on Tailings Management.
Foreign exchange gain/(loss)
The Group reports a foreign exchange gain of $5.6 million in 2024 (2023: loss
of $3.4 million) resulting from the retranslation of US dollar-denominated
monetary assets held by foreign subsidiaries with a local functional currency,
taking into account the weakening of the Kazakh tenge during the year.
At 31 December 2024, the Kazakh tenge weakened by 15% to 524 against the US
dollar, down from 455 on 1 January 2024 (31 December 2023: 455, up from 463 on
1 January 2023). Similarly, the Macedonian denar had weakened by 6% to 58.88
against the US dollar, down from 55.65 on 1 January 2024 (31 December 2023:
55.65, up from 57.65 on 1 January 2023).
Finance income
The Group received finance income of $2.4 million (2023: $2.0 million) owing
predominantly to higher interest rates and increased cash balances during the
year.
Finance costs
The Group incurred finance costs of $2.2 million (2023: $1.9 million) in 2024,
primarily related to non-cash unwinding charges of Group asset retirement
obligations. The costs have reduced compared with 2023 owing to reduced
overdraft balances.
Fair value movement of share-based payment liability
A charge of $4.0 million (2023 restated: $4.8 million) was recognised to
reflect the fair movement of the liability during the year.
Taxation
In 2024, the Group's income tax charges declined to $25.9 million (2023: $27.7
million), primarily due to a reduction in intercompany dividend distributions
from Kazakhstan to the UK, which incurred a 10% withholding tax (WHT),
totalling $5.1 million (2023: $7.5 million). However, the actual corporate
income tax charge has increased to $22.1 million (2023: $19.2 million), due to
higher profits at Kounrad, where taxes are levied at a corporate income tax
rate of 20% (Sasa is taxed at a rate of 10%). The deferred tax liability on
Group asset retirement obligations led to a $1.3 million non-cash increase in
income tax (2023: increase of $1.0 million).
Discontinued operations
The Group reports the results of the Copper Bay entities within discontinued
operations, as they were held for sale during the reporting period. These
assets were fully written off in prior years.
In February 2025, the Company agreed the sale of its 76% interest in the share
capital of Copper Bay Limited and its subsidiaries, for which the entire
consideration is contingent on the potential future production of copper.
Completion of the sale is expected in March 2025.
Balance sheet
Investments
On 31 May 2024, CAML completed its investment of $3.8 million (£3.0 million)
in Aberdeen, acquiring a 28.7% shareholding (since reduced to 28.4% by the
exercise of warrants held by other shareholders in Aberdeen). The investment
is accounted for as an associate using the equity method, as CAML is deemed to
have significant influence. CAML holds warrants to invest an additional £2
million at a price of 11 pence per share which, if exercised, would bring
CAML's ownership to 37.6%, assuming no other changes in Aberdeen's issued
share capital. The warrants are financial assets held at fair value through
profit and loss (FVTPL) and have been valued at $0.3 million at year end using
the Black‑Scholes model.
Capital expenditure
During the year, there were additions to property, plant and equipment of
$20.8 million (2023: $27.8 million) as Sasa approached the completion of the
transition to paste-fill mining.
Kounrad
The capital expenditure additions of $2.5 million (2023: $1.5 million)
included costs incurred for advance purchase of dripper pipes for leaching of
$0.8 million and anodes of $0.8 million.
Sasa
At Sasa, there was a total of $11.6 million (2023: $8.7 million) spent on
sustaining capital and $6.4 million (2023: $14.0 million) in relation to the
transition to paste-fill mining.
Sasa's sustaining capital expenditure included $5.2 million on mining
equipment, which covered shaft upgrade costs, and new underground fleet.
Additionally, $3.0 million was capitalised for mine development, and $2.2
million was allocated to flotation equipment.
Transition to paste-fill mining
The Group has made continued significant investments in the Capital Projects
at Sasa with the continued transition to paste-fill mining. Key developments
during the year included the following:
- PBF Plant and underground reticulation commissioning: a total of
$0.7 million was spent on commissioning of the PBF Plant and underground
reticulation system. They are fully operational and are a key part of Sasa's
tailings disposal.
- Central Decline completion: the completion of the Central
Decline project incurred capex of $2.5 million in 2024, with the decline now
ready for operation, enhancing the operational efficiency of the mine.
- DST Plant and landform: capex on the construction and
automisation of the DST Plant amounted to $1.9 million and capex on the DST
landform was $1.2 million. The plant is scheduled to become operational in Q1
2025.
2025
CAML expects capital expenditure in 2025 of between $18 million and $21
million, of which between $15 million and $17 million is expected to be
committed to sustaining capex. CAML expects project capital expenditure of
between $3 million and $4 million in 2025. This will be largely related to
completion of the DST landform.
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, $0.1 million of expenditure by CAML X was capitalised related to
obtaining licences in Zhamantas and Shaindy, as well as $0.4 million at Sasa
for surface and underground drilling. The majority of work at CAML X focused
on exploration-target generation, necessitating $1.0 million in pre-licence
activities to be expensed as administrative expenses.
Looking ahead, the Group anticipates spending between $2 million and $3
million in 2025 on its exploration licences, including continued target
generation efforts in Kazakhstan. Post-licensing exploration costs will be
capitalised as intangible assets.
Working capital
As at 31 December 2024, current trade and other receivables were $8.7 million
(31 December 2023: $12.2 million). This decrease from the prior year is mainly
due to a reduction in the overpaid Group corporate income tax balance of $1.0
million (31 December 2023: $6.8 million) which was used to offset against
corporate income tax liabilities arising in the same entities in the current
financial year. Additionally, this balance also includes trade receivables
from the offtake sales of $1.9 million (31 December 2023: $1.4 million) and
$2.4 million in relation to prepayments and accrued income (31 December 2023:
$2.3 million).
Non-current trade and other receivables were $6.6 million (31 December 2023:
$13.8 million). This balance includes advances for property, plant and
equipment amounting to $2.9 million (31 December 2023: $9.3 million) as Sasa's
capital investment programme continues. As of 31 December 2024, a total of
$3.7 million (31 December 2023: $4.5 million) of VAT receivable was owed to
the Group by the Kazakhstan authorities. Recovery is still expected through a
continued dialogue with the authorities for cash recovery and further offsets.
At 31 December 2024, current trade and other payables were $17.2 million (31
December 2023: $17.3 million).
Cash and borrowings
At 31 December 2024, the Group had cash in the bank of $67.6 million (31
December 2023: $57.2 million) and a $0.3 million (31 December 2023: $0.3
million) overdraft.
Cash flows
Net cash flow generated from operations was $74.3 million (2023 restated:
$65.0 million).
In 2024, corporate income tax payments to governments totalled $19.6 million
(2023: $27.5 million). This included $14.4 million (2023: $19.2 million) of
Kazakhstan corporate income tax and WHT of 10% on dividends amounting to $5.1
million (2023: $7.5 million) paid during the year. In North Macedonia, $0.1
million (2023: $0.6 million) of corporate income tax was paid in cash in
addition to a $1.4 million (2023: $5.5 million) non-cash payment offset
against VAT and corporate income tax receivable. The decrease in CIT payments
was primarily due to tax instalments being based on the previous year's
taxation charge, resulting in overpayments in 2023 owing to the higher profits
in 2022 for both Kounrad and Sasa.
Taking into consideration the sustaining capital expenditure for Kounrad, Sasa
and CAML X of $14.4 million, which excludes Sasa project capex of $6.4
million, CAML's free cash flow for 2024 was $65.7 million (2023: $57.5
million).
As a result, CAML concluded the year with a strong cash position of $67.6
million (2023: $57.2 million). This was achieved while continuing to support
capital investments, covering operating costs and funding business growth in
exploration and business development initiatives.
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 plus cash-settled share-based payments. The dividends will only be
paid provided there is sufficient cash remaining in the Group to meet any
contractual debt repayments and any banking covenants are not breached.
During the year, the Company paid $40.9 million (2023: $41.5 million) which
consisted of the 2024 interim dividend of 9 pence per share and the 2023 final
dividend of 9 pence per share (2023: 2023 interim dividend of 9 pence per
share and 2022 final dividend of 10 pence per share).
In conjunction with CAML's 2024 annual results, the Board proposes a final
dividend for 2024 of 9 pence per Ordinary Share. This brings total dividends
(proposed and declared) for the year to 18 pence (2023: 18 pence) which
represents approximately 63% of free cash flow. The final dividend is payable
on 20 May 2025 to shareholders registered on 25 April 2025. This latest
dividend will increase the amount returned to shareholders in dividends since
CAML's 2010 Initial Public Offering to 188 pence per share, a cumulative
distribution totalling $380 million.
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 the Kounrad solvent extraction-electrowinning (SX-EW) plant'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
profitable and cash generative operations at Kounrad and Sasa. The Group
manages liquidity risk by maintaining adequate committed borrowing facilities
and the Group had substantial cash balances at 31 December 2024.
The Board has reviewed forecasts for the period to December 2026 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, which 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:
2023
2024 $'000
$'000 (restated)*
Profit for the year 50,631 37,119
Plus/(less):
Income tax expense 25,896 27,703
Depreciation and amortisation 27,088 28,192
Share of post-tax loss of investment in equity accounted associate 76 -
Fair value movement of share-based payments liability 3,966 4,803
Foreign exchange (gain)/loss (5,638) 3,378
Other loss/(income) (211) (75)
Finance income (2,364) (1,992)
Finance costs 2,192 1,852
Loss from discontinued operations 183 63
EBITDA 101,819 101,043
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 copper, zinc
and lead concentrate and the revenue from silver sold to Osisko 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 $0.3 million (31 December 2023: $0.3 million).
31-Dec-24 31-Dec-23
$'000 $'000
Borrowings (252) (326)
Cash and cash equivalents excluding restricted cash 67,318 56,832
Net cash 67,066 56,506
Free cash flow
Free cash flow is a non-IFRS financial measure calculated as the cash from
operations, less sustaining capital expenditure on property, plant and
equipment and intangible assets plus interest received and cash-settled
share-based payments and is presented as follows:
2023
2024 $'000
$'000 (restated)*
Net cash generated from operating activities 74,264 65,023
Less: purchase of property, plant and equipment (14,352) (10,726)
Less: purchase of intangible assets (459) (54)
Add: Cash-settled share-based payments 3,900 1,387
Add: interest received 2,374 1,916
Free cash flow 65,727 57,546
The purchase of sustaining property, plant and equipment figure above does not
include the $6.4 million (2023: $17.0 million) of capitalised expenditure on
the Capital Projects at Sasa. These costs are not considered sustaining
capital expenditure as they are expansionary development costs required for
the transition to paste-fill mining.
The definition of FCF was updated to include the cash-settled share-based
payments of $3.9 million (2023: $1.4 million) which following a restatement
has been reclassified to net cash generated from operating activities.
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.
For 2024, this pro-rata contribution was 39%.
2024 2024 Production, 2024
$'000 % t $/lb
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 costs(1) (618)
Silver stream commitment (Note 7) (984)
Offtake buyers' fee (Note 6)(2) (3,929)
Realisation charges(3) (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
For 2023, the pro-rata contribution was 37%.
2023 2023 Production, 2023
$'000 % t $/lb
Kounrad C1 cash costs 22,645 100 13,816 0.74
Sasa C1 cash costs (zinc equivalent) 66,648 37 15,614 0.66
Group C1 cash costs (copper equivalent) 89,293 100 25,451 1.59
Reconciliation of Group C1 cash costs to Group costs (IFRS):
Group C1 cash costs 89,293
Plus:
Royalties (Note 7) 12,692
Taxes and duties (Notes 7, 9) 929
Depreciation and amortisation (Note 5) 28,192
Non-mining operations, unallocated EBITDA (Note 5) 16,928
Other items, including inventories variation 1,033
Less:
Group technical, support and marketing costs(1) (3,899)
Silver stream commitment (Note 7) (1,136)
Offtake buyers' fee (Note 6)(2) (3,955)
Realisation charges(3) (17,648)
Group costs (IFRS) as shown below 122,429
Group cost of sales (excl. silver purchases) 92,894
Group distribution and selling costs 2,844
Group administrative expenses 26,691
Group costs (IFRS) 122,429
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
19 March 2025
CONSolidated Income Statement
for the year ended 31 December 2024
* See Note 40 for details regarding the prior year restatement.
Group
Note 2023
$'000
2024
$'000 (restated)*
Continuing operations
Revenue 6 214,441 203,461
Cost of sales 7 (108,801) (101,075)
Distribution and selling costs 8 (2,142) (2,844)
Gross profit 103,498 99,542
Administrative expenses 9 (28,767) (26,691)
Other income and losses, net 10 211 75
Foreign exchange gain/(loss) 5,638 (3,378)
Operating profit 80,580 69,548
Finance income 14 2,364 1,992
Finance costs 15 (2,192) (1,852)
Fair value movement of share-based payment liability 29 (3,966) (4,803)
Share of post-tax loss of investment in equity accounted associate 21 (76) -
Profit before income tax 76,710 64,885
Income tax 16 (25,896) (27,703)
Profit for the year from continuing operations 50,814 37,182
Discontinued operations
Loss for the year from discontinued operations, net of tax 22 (183) (63)
Profit for the year 50,631 37,119
Profit attributable to:
Non-controlling interests 20 (231) 68
Owners of the parent 50,862 37,051
Profit for the year 50,631 37,119
Earnings/(loss) per share from continuing and discontinued $ cents $ cents
operations attributable
to owners of the parent during the year (expressed in cents per share)
Basic earnings/(loss) per share
From continuing operations 17 28.90 20.40
From discontinued operations (0.10) (0.03)
From profit for the year 28.80 20.37
Diluted earnings/(loss) per share
From continuing operations 17 26.94 19.64
From discontinued operations (0.10) (0.03)
From profit for the year 26.84 19.61
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2024
Group
Note 2024 2023
$'000
$'000
(restated)*
Profit for the year 50,631 37,119
Other comprehensive (expense)/income:
Items that may be subsequently reclassified to profit or loss:
Currency translation differences 28 (27,261) 12,925
Other comprehensive (expense)/ income for the year, net of tax (27,261) 12,925
Total comprehensive income for the year 23,370 50,044
Attributable to:
Non-controlling interests (231) 68
Owners of the parent 23,601 49,976
Total comprehensive income for the year 23,370 50,044
Total comprehensive income/(expense) attributable to equity shareholders 23,553 50,107
arises from:
Continuing operations
Discontinued operations (183) (63)
Total comprehensive income for the year 23,370 50,044
* See Note 40 for details regarding the prior year restatement.
The Company has elected to take the exemption under section 408 of the
Companies Act 2006 not to present the parent company income statement or
statement of comprehensive income. The profit for the parent company for the
year was $36,632,000 (2023 restated: $61,824,000).
STATEMENTS OF FINANCIAL POSITION
as at 31 December 2024
Registered no. 5559627
Group Company
Note 2024 2023 2024 2023
$'000
$'000
$'000
$'000
(restated)* (restated)*
Assets
Non-current assets
Property, plant and equipment 18 318,744 338,121 1,450 1,851
Intangible assets 19 21,371 25,425 - -
Deferred income tax asset 38 561 512 - -
Investments 20 - - 5,107 5,107
Investment in equity accounted associate 21 3,775 - 3,775 -
Financial assets at FVTPL 21 336 - 336 -
Other non-current receivables 23 6,616 13,801 - -
Loans due from subsidiary 24 - - 263,210 282,244
351,403 377,859 273,878 289,202
Current assets
Inventories 25 12,517 14,879 - -
Trade and other receivables 23 7,730 5,474 1,435 1,415
Loans due from subsidiary 24 - - 22,094 10,100
Income tax receivable 936 6,750 - -
Restricted cash 26 327 318 - -
Cash and cash equivalents 26 67,318 56,832 57,400 45,326
88,828 84,253 80,929 56,841
Held for sale assets 22 61 76 - -
88,889 84,329 80,929 56,841
Total assets 440,292 462,188 354,807 346,043
Equity attributable to owners of the parent
Ordinary Shares 27 1,821 1,821 1,821 1,821
Share premium 27 205,825 205,725 205,825 205,725
Treasury shares 27 (13,885) (15,413) (13,885) (15,413)
Currency translation reserve 28 (148,428) (121,167) - -
Retained earnings 307,864 297,871 100,654 104,891
353,197 368,837 294,415 297,024
Non-controlling interests 20 (1,485) (1,254) - -
Total equity 351,712 367,583 294,415 297,024
Liabilities
Non-current liabilities
Silver stream commitment 31 14,978 16,042 - -
Lease liability 1,056 1,325 875 1,197
Share-based payment liability 29 2,291 2,268 2,291 2,268
Provisions for other liabilities and charges 33 26,000 26,801 99 94
Deferred income tax liability 38 16,613 18,983 - -
60,938 65,419 3,265 3,559
Current liabilities
Borrowings and loans due to subsidiary 32 252 326 42,220 28,146
Silver stream commitment 31 1,082 1,002 - -
Trade and other payables 30 17,173 17,265 5,959 6,970
Lease liability 413 176 313 138
Share-based payment liability 29 8,635 10,206 8,635 10,206
Provisions for other liabilities and charges 33 63 55 - -
Income tax payable - 62 - -
27,618 29,092 57,127 45,460
Held for sale liabilities 22 24 94 - -
27,642 29,186 57,127 45,460
Total liabilities 88,580 94,605 60,392 49,019
Total equity and liabilities 440,292 462,188 354,807 346,043
* See Note 40 for details regarding the prior year restatement.
CONSOLIDATED Statement of Changes in Equity
for the year ended 31 December 2024
Attributable to owners of the parent Note Ordinary Share Treasury Currency translation reserve Retained Total Non-controlling interests Total
Shares
premium
shares
$'000
earnings
$'000
$'000
equity
$'000
$'000
$'000
$'000
$'000
(restated)*
(restated)* (restated)*
Balance as at 1 January 2023 1,821 205,437 (15,831) (134,092) 312,107 369,442 (1,322) 368,120
Profit for the year (restated)* - - - - 37,051 37,051 68 37,119
Other comprehensive income - currency translation differences 28 - - - 12,925 - 12,925 - 12,925
Total comprehensive income (restated)* - - - 12,925 37,051 49,976 68 50,044
Transactions with owners
Modification of share-based payments to cash-settled (restated)* 29 - - - - (9,762) (9,762) - (9,762)
Modification of cash-settled share-based payment to equity-settled (restated)* 29 - - - - 706 706 - 706
Exercise of share options (restated)* 29 - 288 418 - (706) - - -
Dividends 36 - - - - (41,525) (41,525) - (41,525)
Total transactions with owners (restated)* - 288 418 - (51,287) (50,581) - (50,581)
Balance as at 31 December 2023 (restated)* 1,821 205,725 (15,413) (121,167) 297,871 368,837 (1,254) 367,583
Profit/(loss) for the year - - - - 50,862 50,862 (231) 50,631
Other comprehensive expense - currency translation differences 28 - - - (27,261) - (27,261) - (27,261)
Total comprehensive income/(expense) - - - (27,261) 50,862 23,601 (231) 23,370
Transactions with owners
Modification of cash-settled share-based payment to equity-settled 29 - - - - 1,628 1,628 - 1,628
Exercise of share options 29 - 100 1,528 - (1,628) - - -
Dividends 36 - - - - (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 1,821 205,825 (13,885) (148,428) 307,864 353,197 (1,485) 351,712
*See Note 40 for details regarding the prior year restatement.
Company Statement of Changes in Equity
for the year ended 31 December 2024
Company Note Ordinary Share Treasury Retained Total
Shares
premium
shares
earnings
equity
$'000
$'000
$'000
$'000
$'000
(restated)* (restated)*
Balance as at 1 January 2023 1,821 205,437 (15,831) 94,354 285,781
Profit for the year (restated)* - - - 61,824 61,824
Total comprehensive income (restated)* - - - 61,824 61,824
Transactions with owners
Modification of share-based payments to cash-settled (restated)* 29 - - - (9,762) (9,762)
Modification of share-based payment to equity-settled (restated)* 29 - - - 706 706
Exercise of share options (restated*) 29 - 288 418 (706) -
Dividends 36 - - - (41,525) (41,525)
Total transactions with owners (restated)* - 288 418 (51,287) (50,581)
Balance as at 31 December 2023 (restated)* 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 share-based payment to equity-settled 29 - - - 1,628 1,628
Exercise of share options 29 - 100 1,528 (1,628) -
Dividends 36 - - - (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
*See Note 40 for details regarding the prior year restatement.
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2024
Note 2024 2023
$'000
$'000
(restated)*
Cash flows from operating activities
Cash generated from operations 34 93,897 92,598
Interest paid (66) (94)
Corporate income tax paid (19,567) (27,481)
Net cash flow generated from operating activities 74,264 65,023
Cash flows from investing activities
Purchases of property, plant and equipment (20,786) (27,807)
Proceeds from sale of property, plant and equipment 66 27
Purchase of intangible assets (459) (54)
Purchase of investment in equity accounted associate 21 (3,851) -
Interest received 2,374 1,916
Increase in restricted cash (57) (50)
Net cash used in investing activities (22,713) (25,968)
Cash flows from financing activities
Repayment of overdraft 32 (58) (1,090)
Payment of lease liabilities (36) -
Dividends paid to owners of the parent 36 (40,869) (41,525)
Net cash used in financing activities (40,963) (42,615)
Effect of foreign exchange (loss)/gain on cash and cash equivalents (116) 105
Net increase/(decrease) in cash and cash equivalents 10,472 (3,455)
Cash and cash equivalents at the beginning of the year 26 56,906 60,361
Cash and cash equivalents at the end of the year 26 67,378 56,906
* See Note 40 for details regarding the prior year restatement.
Cash and cash equivalents at 31 December 2024 includes cash at bank and on
hand included in held for sale assets of $60,000 (31 December 2023: $74,000)
(Note 22). The consolidated statement of cash flows does not include the
restricted cash balance of $327,000 (2023: $318,000) (Note 26). The
restricted cash amount is held at bank to cover Kounrad subsoil user licence
requirements.
Corporate income tax paid includes $5,145,000 (2023: $7,547,000) 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 2024
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 that was formed to progress early exploration
opportunities in Kazakhstan and a 28.4% interest in Aberdeen Minerals Ltd, a
privately owned UK company focused on the exploration and development of base
metals opportunities in northeast Scotland. The Company owns a 76% equity
interest in Copper Bay Limited and its subsidiaries, which the Company has
agreed to sell post the year end and is therefore classified as held for sale,
see Note 39 for more details.
CAML is a public limited company, 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. These policies, aside
from the new investment in equity accounted associate policy as included
below, have been consistently applied to all the years presented.
Certain amounts reported for the previous year have been restated. Details of
the restatements can be found in Note 40.
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 2024, but is
derived from the Group's audited financial statements. The auditors have
reported on the 2024 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 2024
Annual Report was approved by the Board of Directors on 19 March 2025, and
will be mailed to shareholders in April 2025. 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 2024. 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 95% 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.
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 and no significant borrowings as
at 31 December 2024.
The Board has reviewed forecasts for the period to December 2026 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, 26 and 30 for information on the Group's revenues,
cash balances and trade and other payables.
Climate change considerations
The Group's TCFD-aligned Climate Change Report outlines the Board-approved
climate change strategy, which integrates the management of physical and
transition risks as well as opportunities into the Company's strategic and
operational planning processes. The report also provides a summary 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
(https://www.legislation.gov.uk/uksi/2022/31/pdfs/uksi_20220031_en.pdf) we
provide transparent climate-related financial disclosures in our annual
financial information. 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 GHG emissions directly through the combustion of fuels and
energy at its operations, and indirectly through the consumption of
electricity purchased from national grids that include fossil-based energy in
their electricity production.
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 2024, the Company has achieved a 44%
reduction. This mid-term target is a key milestone en-route to the Company's
overall objective of net zero Scope 1 and 2 GHG emissions by 2050.
In 2022, the Group conducted a scenario analysis to quantify certain
climate-related risks to its business, considering three scenarios: an orderly
transition risk scenario aligned with 1.5° of warming supported by SSP1-1.9
'Net zero 2050', a disorderly transition risk scenario aligned with
approximately 2.0°C of warming supported by SSP4-2.6 'Net zero 2090' and a
high physical risk scenario supported by SSP5-8.5, 'high physical risk'. The
potential impact of these on 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 where appropriate 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 have 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 2024. 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:
‣ Lease Liability in a Sale and Leaseback
(Amendments to IFRS 16 Leases);
‣ Classification of Liabilities as Current
or Non-Current (Amendments to IAS 1 Presentation of Financial Statements);
‣ Non-current Liabilities with Covenants
(Amendments to IAS 1 Presentation of Financial Statements); and
‣ Supplier Finance Arrangements (Amendments
to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments:
Disclosures).
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 amendment is effective for the annual reporting period beginning
1 January 2025:
‣ Lack of Exchangeability (Amendments to IAS
21 The Effects of Changes in Foreign Exchange Rates).
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).
These standards are not expected to have a material impact on the entity 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 have a significant effect on 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 consolidated the financial statements of CAML
and the entities it controls drawn up to 31 December 2024.
Goodwill
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 Note 19 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.
Investment in equity accounted associate
During the year, CAML invested $3.8 million (£3.0 million) in Aberdeen
Minerals Ltd ('Aberdeen'), acquiring a 28.7% (now 28.4%) shareholding. The
investment has been accounted for by both the parent company and the group as
an associate using the equity method, as CAML is deemed to have 'significant
influence' (see Note 21).
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. The fair value valuation has resulted in the recognition
of a financial asset of $336,000 at year end and a corresponding gain in other
income and losses of $336,000 in the income statement (Note 10).
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
‣ CAML X (exploration activities) in
Kazakhstan
CAML X was incorporated on 18 August 2023 and has been reported as a new
segment following the commencement of expenditure on early exploration
opportunities in Kazakhstan during the year ended 31 December 2024 (Note 5).
Included within the unallocated segment 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
2024, the remaining useful lives were as follows:
‣ Construction in progress - not depreciated
‣ Land - not depreciated
‣ Plant and equipment - over 5 to 14 years
‣ Mining assets - over 2 to 14 years
‣ Motor vehicles - over 2 to 10 years
‣ Office equipment - over 2 to 10 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 total proven
and probable reserves as well as measured, 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
During the year, the Group incurred exploration and evaluation costs at Sasa
and CAML X totalling $432,000 (2023: nil). 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
Osisko Gold Royalties (Osisko) 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 31). 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.
Non-current assets (or disposal groups) held for sale and discontinued
operations
The Company owns a 76% equity interest in Copper Bay Limited, which is
currently classified as held for sale in the statement of financial position.
Post year end the sale of the share capital of Copper Bay Limited was agreed
(Note 39). The exploration assets and property, plant and equipment held in
Copper Bay were fully written off in prior years. The results of the Copper
Bay entities for the year ended 31 December 2024 and the comparative year
ended 31 December 2023 are shown within discontinued operations in the
consolidated income statement.
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.
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 that historically has been primarily
equity-settled. However, due to recent cash settlements, the Company has
revised the treatment of its share options in accordance with IFRS 2
Share-based Payment, recognising that cash-settled share-based payments now
reflect a past practice. As of 1 January 2023, the Company identified a
modification date and reclassified previously equity-settled options to
cash-settled. This has led to a restatement of the comparatives (see Note 40).
The 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.
Provisions
The Group has recognised provisions for liabilities of uncertain timing or
amount including those for leasehold dilapidations, legal disputes and the
following:
a) 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.
b) Employee benefits - pension
The Group, in the normal course of business, makes payments on behalf of its
employees for pensions, healthcare, employment and personnel tax, which are
calculated based on gross salaries and wages according to legislation. The
cost of these payments is charged to the consolidated income statement in the
same period as the related salary cost.
c) Employee benefits - retirement benefits and jubilee awards
Pursuant to the labour law prevailing in the North Macedonian subsidiaries,
the Group is obliged to pay 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. Due to the long-term nature of these
plans, such estimates are subject to uncertainty.
Retirement 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 33). Actuarial gains and
losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to profit and loss over the employees'
expected average remaining working lives.
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 and impairment reversals 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 Note
19.
Assets (other than goodwill) must be assessed for indicators of both
impairment and impairment reversal. Such assets are generally carried on the
balance sheet at a value close to their recoverable amount at the last
assessment. Therefore, in principle 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 or
impairment test.
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 appointed 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 to update
the estimated costs at Sasa for the capping of the tailings facilities
following discussions with the regulators.
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% change in the
discount rate would result in an impact of $5,070,000 on the provision for
asset retirement obligation. A 2% change in the inflation rate would result in
an impact of $6,160,000 on the provision for asset retirement obligation. A
20% change in cost would result in an impact of $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 Ore Reserves
and Mineral Resources were estimated on 31 December 2024.
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
Estimates may vary from period to period. This judgement has a significant
impact on impairment consideration and the period over which capitalised
assets are depreciated within the financial information.
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 31) related to
the production of silver during the life of the mine. The Group has agreed to
sell to Osisko 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 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 Osisko 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
The Group's climate change strategy commits to 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 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 provide 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.
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.
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
2024 2023 Movement 2024 2023 Movement
Kazakhstan tenge 468.96 456.18 +3% 523.54 454.56 +15%
Macedonian denar 56.70 56.85 +1% 58.88 55.65 +6%
British pound 0.78 0.81 +4% 0.80 0.79 +1%
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
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)
Group
2023
In $'000 equivalent USD EUR GBP
Cash and cash equivalents 3,942 226 505
Trade and other receivables 109 - 10
Trade and other payables - (268) (3,516)
Net exposure 4,051 (42) (3,001)
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 2024, if the foreign currencies had weakened/strengthened by
10% against the US dollar, post-tax Group profit for the year would have been
$648,000 lower/higher (2023: $101,000 lower/higher).
Commodity price risk
The Group has a hedging policy in place to manage commodity price risk;
however, the Directors elected not to hedge during the year and the prior
year.
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 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
2024 2023
$'000
$'000
10% increase in copper, zinc and lead price 22,033 21,437
10% decrease in copper, zinc and lead price (22,033) (21,437)
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 24 31 Dec 23
$'000
$'000
(restated)*
Trade and other payables within one year 13,191 13,101
Share-based payment liability within one year 8,635 10,206
Borrowings payable within one year (Note 32) 252 326
Lease liability payable within one year 496 248
Lease liability payable later than one year but not later than five years 1,138 1,487
Share-based payment liability later than one year but not later than five 2,291 2,268
years
26,003 27,636
* See Note 40 for details regarding
the prior year restatement.
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 2024 2023
$'000
$'000
(restated)*
Cash and cash equivalents excluding restricted cash 26 67,318 56,832
Bank overdraft 32 (252) (326)
Net cash 67,066 56,506
Total equity 351,712 367,583
Net cash to equity ratio 19% 15%
*See Note 40 for details regarding the prior year restatement.
Changes in liabilities arising from financing activities
The total borrowings as at 1 January 2024 were $326,000 (1 January 2023:
$1,390,000). During the year, there were repayments on unsecured overdrafts
of $58,000 (2023: $1,090,000). Other changes amounted to a reduction of
$16,000 (2023: increase of $26,000) leading to a closing debt balance of
$252,000 (2023: $326,000). See Note 32 for more details.
The cash and cash equivalents including cash at bank and on hand in held for
assets sale brought forward were $56,906,000 (2023: $60,361,000) with a net
$10,472,000 inflow (2023: $3,455,000 outflow) during the year and, therefore,
a closing balance of $67,378,000 (2023: $56,906,000).
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 26 and on its
trade and other receivables as set out in Note 23. 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. 85% 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- (2023: 92%). The rest of the Group's cash was held with a mix of
institutions with credit ratings between A and BBB- (2023: 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 considered
immaterial (Note 24).
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 $20,000 (2023: $46,000). There is some interest rate risk
exposure linked to US dollar interest-earning bank balances with variable
rates. At 31 December 2024, if interest rates on variable interest earning US
dollar bank balances had been 150 basis points higher/lower, profit after tax
for the year would have been $677,000 higher/lower (2023: $577,000
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 24 31 Dec 23
$'000
$'000
Cash and cash equivalents including restricted cash (Note 26) 67,645 57,150
Trade and other receivables 2,329 1,899
69,974 59,049
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
31 Dec 24 31 Dec 23
Measured at amortised cost $'000 $'000
(restated)*
Trade and other payables within one year 13,191 13,101
Borrowings payable within one year (Note 32) 252 326
Share-based payment liability within one year 8,635 10,206
Lease liability within one year 414 176
Lease liability payable later than one year but not later than five years 1,056 1,325
Share-based payment liability later than one year but not later than five 2,291 2,268
years
25,839 27,402
* See Note 40 for details regarding
the prior year restatement.
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 2024 are as follows:
Kounrad Sasa CAML X Unallocated Total
$'000
$'000
$'000
$'000
$'000
Revenue 121,783 92,658 - - 214,441
Cost of sales (33,957) (74,844) - - (108,801)
EBITDA 88,812 32,248 (983) (18,258) 101,819
Depreciation and amortisation (4,493) (22,140) (35) (420) (27,088)
Foreign exchange gain/(loss) 5,634 157 (137) (16) 5,638
Other income and losses, net 395 (515) (1) 332 211
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 89,894 8,124 (1,156) (20,152) 76,710
Income tax (23,934) (1,962) - - (25,896)
Profit/(loss) for the year after tax from continuing operations 65,960 6,162 (20,152) 50,814
(1,156)
Loss from discontinued operations (183)
Profit for the year 50,631
Depreciation and amortisation include $12,398,000 on the fair value uplift on
the acquisition of Sasa and Kounrad.
The segment results for the year ended 31 December 2023 are as follows:
Kounrad Sasa Unallocated Total
$'000
$'000
$'000
$'000
(restated)* (restated)* (restated)* (restated)*
Revenue 113,318 90,143 - 203,461
Cost of sales (31,155) (69,920) - (101,075)
EBITDA 82,308 35,663 (16,928) 101,043
Depreciation and amortisation (4,168) (23,672) (352) (28,192)
Foreign exchange loss (2,819) (453) (106) (3,378)
Other income and losses, net 75 - - 75
Fair value movement of share-based payment liability - (4,803)
- (4,803)
Finance income 14 - 1,978 1,992
Finance costs (430) (1,372) (50) (1,852)
Profit/(loss) before income tax 74,980 10,166 (20,261) 64,885
Income tax (24,866) (2,837) - (27,703)
Profit for the year after tax from continuing operations 50,114 7,329 (20,261) 37,182
Loss from discontinued operations (63)
Profit for the year 37,119
Depreciation and amortisation include $15,057,000 on the fair value uplift on
the acquisition of Sasa and Kounrad.
A reconciliation between profit for the year and EBITDA is presented in the
Financial Review section.
Group segment assets and liabilities for the year ended 31 December 2024 are
as follows:
Segment assets Additions to Segment liabilities
non-current assets
31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23
$'000
$'000
$'000
$'000
$'000
$'000
(restated)*
Kounrad 61,149 72,097 2,952 4,389 (15,919) (17,570)
Sasa 315,012 342,197 24,444 22,066 (54,342) (56,054)
CAML X 581 - 240 - (114) -
Investment in equity accounted associate (Aberdeen minerals) 3,775 - - - - -
Held for sale assets (Note 22) 61 76 - - (24) (94)
Unallocated including corporate 59,714 47,818 28 2,092 (18,181) (20,887)
440,292 462,188 27,664 28,547 (88,580) (94,605)
* See Note 40 for details regarding
the prior year restatement.
6. Revenue
Group 2023
$'000
2024
$'000 (restated)*
International customers (Europe) - copper cathode 124,757 116,086
International customers (Europe) - zinc and lead concentrate (including silver 91,328 88,844
by-product)
Domestic customers (Kazakhstan) - copper cathode - 237
International customers (Europe) - silver stream arrangement 2,285 2,249
Less: Offtake buyers' fees (3,929) (3,955)
Revenue 214,441 203,461
* See Note 40 for details regarding
the prior year restatement.
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. 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 buyer's fee, which is deducted from
the selling price.
During 2024, the Group sold 13,521 tonnes (2023: 13,658 tonnes) of copper
through the offtake arrangements. Some of the copper cathodes are also sold
locally, and during 2024, nil tonnes (2023: 29 tonnes) were sold to local
customers.
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, i.e. 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 15,839 tonnes (2023: 17,113 tonnes) of payable zinc in
concentrate and 25,560 tonnes (2023: 26,298 tonnes) of payable lead in
concentrate.
The revenue arising from the silver stream arrangement with Osisko 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 31).
7. Cost of sales
Group 2024 2023
$'000
$'000
(restated)*
Reagents, electricity and materials 30,079 26,622
Depreciation and amortisation 26,269 27,443
Silver stream commitment (Note 31) (984) (1,136)
Royalties 12,722 12,692
Employee benefit expense 23,102 20,674
Open market silver purchases to fulfil silver stream commitment 10,055 8,181
Consulting and other services 6,976 6,085
Taxes and duties 582 514
108,801 101,075
* See Note 40 for details regarding
the prior year restatement.
8. Distribution and selling costs
Group 2024 2023
$'000
$'000
Freight costs 1,856 2,169
Transportation costs 26 28
Depreciation and amortisation 1 5
Materials and other forwarding expenses 259 642
2,142 2,844
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 2024 2023
$'000
$'000
(restated)*
Employee benefit expense 13,569 12,139
Consulting and other services 11,514 10,730
Auditors' remuneration (Note 11) 707 574
Office-related and travel costs 1,815 2,089
Taxes and duties 344 415
Depreciation and amortisation 818 744
Total from continuing operations 28,767 26,691
Total from discontinued operations (Note 22) 162 382
28,929 27,073
* See Note 40 for details regarding
the prior year restatement.
10. Other income and losses, net
Group 2024 2023
$'000
$'000
Other (losses)/income, net (125) 75
Changes in the fair value of the warrants at FVTPL (Note 21) 336 -
211 75
11. Auditors' remuneration
During the year, the Group obtained the following services from the Company's
Auditor and their associates:
Group 2024 2023
$'000
$'000
Fees payable to BDO LLP the Company's Auditors for the audit of the parent 373 297
company and consolidated financial statements
Fees payable to BDO LLP the Company's Auditor and their associates for the 240 208
audit of the Company's subsidiaries:
‣ The audit of Company's subsidiaries
Fees payable to BDO LLP the Company's Auditor and their associates for other 74 69
services:
‣ Audit-related services: Interim review
‣ Non-audit services 20 -
707 574
12. Employee benefit expense
The aggregate remuneration of staff, including Directors, was as follows:
Group 2024 2023
$'000
$'000
Wages and salaries 27,110 24,689
Social security costs and similar taxes 3,624 2,846
Staff healthcare and other benefits 3,890 3,668
Other pension costs 4,545 4,158
Fair value movement of share-based payment liability 3,966 4,803
Total for continuing operations 43,135 40,164
Total for discontinuing operations (Note 22) 75 75
43,210 40,239
The total employee benefit expense includes an amount of $2,497,000 (2023:
$2,548,000), which has been capitalised within property, plant and equipment.
Company 2024 2023
$'000
$'000
(restated)*
Wages and salaries 7,396 6,961
Social security costs 1,532 1,016
Staff healthcare and other benefits 201 584
Other pension costs 165 145
Fair value movement of share-based payment liability 3,966 4,803
13,260 13,509
*See Note 40 for details regarding the prior year restatement.
Key management remuneration is disclosed in the Remuneration Committee Report.
13. Monthly average number of people employed
Group 2024 2023
Number
Number
Operational 969 962
Management and administrative 190 180
1,159 1,142
The monthly average number of staff employed by the Company during the year
was 21 (2023: 20).
14. Finance income
Group 2024 2023
$'000
$'000
Bank interest received 2,364 1,992
2,364 1,992
15. Finance costs
Group 2024 2023
$'000
$'000
Provisions: unwinding of discount (Note 33) 2,020 1,707
Interest on borrowings (Note 32) 20 46
Lease interest expense and bank charges 152 99
2,192 1,852
16. Income tax
Group 2024 2023
$'000
$'000
Current tax on profits for the year 22,014 19,150
Withholding tax on intercompany dividend distributions 5,145 7,547
Deferred tax (credit)/debit (Note 38) (1,263) 1,006
Income tax expense 25,896 27,703
The tax on the Group's profit before tax differs from the theoretical amount
that would arise using the weighted average tax rate applicable to profits of
the consolidated entities is as follows:
2024 2023
$'000
$'000
Group
(restated)*
Profit before income tax 76,710 64,885
Tax calculated at domestic tax rates applicable to profits in the respective 14,887 12,202
countries
Tax effects of:
Expenses not deductible for tax purposes 5,417 5,112
Withholding tax on intercompany dividend distributions 5,145 7,547
Deferred income tax (credit)/debit (Note 38) (1,263) 1,006
Movement on unrecognised deferred tax - tax losses 1,710 1,836
Income tax expense 25,896 27,703
* See Note 40 for details regarding
the prior year restatement.
Taxation for each jurisdiction is calculated at the rates prevailing in the
respective jurisdictions. Corporate income tax is calculated at 25% (2023:
23.5%) of the assessable profit for the year for the UK parent company, 20%
for the operating subsidiaries in Kazakhstan (2023: 20%) and 10% (2023: 10%)
for the operating subsidiaries in North Macedonia. The payment of 10%
withholding tax on intercompany dividends from Kazakhstan was introduced from
1 January 2023.
Expenses not deductible for tax purposes includes share-based payment charges,
transfer pricing adjustments in accordance with local tax legislation,
impairment and depreciation and amortisation charges.
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.
17. 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 27).
Group 2024 2023
$'000
$'000
(restated)*
Profit from continuing operations attributable to owners of the parent 51,045 37,114
Loss from discontinued operations attributable to owners of the parent (183) (63)
Profit attributable to owners of the parent 50,862 37,051
2024 2023
No.
No.
(restated)*
Weighted average number of Ordinary Shares in issue 176,645,177 181,904,941
2024 2023
$ cents
$ cents
(restated)*
Earnings/(loss) per share from continuing and discontinued operations
attributable to owners of the parent during the year (expressed in $ cents per
share)
From continuing operations 28.90 20.40
From discontinued operations (0.10) (0.03)
From profit for the year 28.80 20.37
* See Note 40 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 29).
Additionally, for the share-based payments treated as cash-settled under IFRS
2, the numerator has been adjusted for the amount in the income statement that
would not have been recognised in the income statement had the arrangement
been classified wholly as an equity instrument (as if the arrangement was
treated as equity-settled).
Group 2024 2023
$'000
$'000
(restated)*
Profit from continuing operations attributable to owners of the parent 51,045 37,114
Loss from discontinued operations attributable to owners of the parent (183) (63)
Profit attributable to owners of the parent 50,862 37,051
Adjusted for: (1,019) 263
‣ Adjustment to profit if share options were equity settled
Profit attributable to owners of the parent for diluted EPS 49,843 37,314
* See Note 40 for details regarding
the prior year restatement.
2024 2023
No.
No
Weighted average number of Ordinary Shares in issue 176,645,177 181,904,941
Adjusted for:
‣ Share options 9,013,024 8,399,686
Weighted average number of Ordinary Shares for diluted EPS 185,658,201 190,304,627
Diluted earnings/(loss) per share 2024 2023
$ cents
$ cents
From continuing operations 26.94 19.64
From discontinued operations (0.10) (0.03)
From profit for the year 26.84 19.61
18. Property, plant and equipment
Group Construction in progress Plant and Mining Motor vehicles, office equipment and right-of-use assets Land Mineral Total
equipment
assets
$'000
$'000
rights
$'000
$'000
$'000
$'000
$'000
Cost
At 1 January 2023 16,005 164,593 1,175 2,944 590 329,961 515,268
Additions 26,235 82 - 2,176 - - 28,493
Disposals - (412) - (1,398) - - (1,810)
Change in estimate - asset retirement obligation (Note 33) - 3,687 - - - - 3,687
Transfers (29,713) 29,080 - 633 - - -
Exchange differences 511 3,040 22 38 22 7,329 10,962
At 31 December 2023 13,038 200,070 1,197 4,393 612 337,290 556,600
Additions 26,786 80 - 340 - - 27,206
Disposals - (163) (1) (88) - - (252)
Change in estimate - asset retirement obligation (Note 33) (576) (576)
- - - - -
Transfers (12,866) 12,629 - 237 - - -
Exchange differences (1,239) (11,168) (158) (270) (34) (10,920) (23,789)
At 31 December 2024 25,719 200,872 1,038 4,612 578 326,370 559,189
Group Construction in progress Plant and Mining Motor vehicles and right-of-use assets Land Mineral Total
equipment
assets
$'000
$'000
rights
$'000
$'000
$'000
$'000
$'000
Accumulated depreciation
and impairment
At 1 January 2023 - 72,016 580 2,161 - 118,314 193,071
Provided during the year - 12,576 90 641 - 13,298 26,605
Transfers - (277) - 277 - - -
Disposals - (204) - (1,375) - - (1,579)
Exchange differences - 354 11 17 - - 382
At 31 December 2023 - 84,465 681 1,721 - 131,612 218,479
Provided during the year - 14,109 39 728 - 10,685 25,561
Disposals - (98) - (79) - - (177)
Exchange differences - (3,160) (94) (164) - - (3,418)
At 31 December 2024 - 95,316 626 2,206 - 142,297 240,445
Net book value at 31 December 2023 13,038 115,605 516 2,672 612 205,678 338,121
Net book value at 31 December 2024 25,719 105,556 412 2,406 578 184,073 318,744
Motor vehicles and right-of-use assets
Company Leasehold improvements Right-of-use assets Office equipment Total
$'000
$'000
$'000
$'000
Cost
At 1 January 2023 232 814 372 1,418
Additions 347 1,516 159 2,022
Disposals (232) (814) (293) (1,339)
At 31 December 2023 347 1,516 238 2,101
Additions - - 28 28
Disposals - (4) (34) (38)
At 31 December 2024 347 1,512 232 2,091
Company Leasehold improvements Right-of-use assets Office equipment Total
$'000
$'000
$'000
$'000
Accumulated depreciation
and impairment
At 1 January 2023 206 685 343 1,234
Provided during the year 45 273 35 353
Disposals (234) (814) (289) (1,337)
At 31 December 2023 17 144 89 250
Provided during the year 69 306 46 421
Disposals - - (30) (30)
At 31 December 2024 86 450 105 641
Net book value at 31 December 2023 149 1,851
330 1,372
Net book value at 31 December 2024 127 1,450
261 1,062
The decrease in estimate in the asset retirement obligation 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
33).
During the year, there were total disposals of property, plant and equipment
at a cost of $252,000 (2023: $1,810,000) with accumulated depreciation of
$177,000 (2023: $1,579,000). The Group received $66,000 (2023: $27,000)
consideration for these assets and, therefore, a loss of $9,000 was recognised
(2023: loss of $204,000).
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 2024 2023
$'000
$'000
Office 342 366
Other 55 30
Total depreciation 397 396
Interest expense included in finance costs 106 50
19. Intangible assets
Group Goodwill Mining licences and permits Computer Total
$'000
$'000
software and website
$'000
$'000 Exploration and evaluation $'000
Cost
At 1 January 2023 28,336 33,370 389 - 62,095
Additions - - 54 - 54
Exchange differences 132 571 3 - 706
At 31 December 2023 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
Accumulated amortisation and impairment
At 1 January 2023 20,921 14,320 302 - 35,543
Provided during the year - 1,778 47 - 1,825
Exchange differences - 62 - - 62
At 31 December 2023 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
Net book value at 31 December 2023 7,547 17,781 97 - 25,425
Net book value at 31 December 2024 6,553 14,344 59 21,371
415
The Company has nil intangible assets at net book value as at 31 December 2024
(2023: nil).
Impairment assessment
In accordance with IAS 36 'Impairment of Assets' and IAS 38 'Intangible
Assets', a review for impairment of goodwill and long-lived assets 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 CGU. A CGU is the smallest identifiable group of assets that generates
cash inflows that are largely independent of the cash inflows from other
assets or groups of assets.
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.
The valuations generally remain most sensitive to price and a
deterioration/improvement in the pricing outlook may result in additional
impairments/reversals.
Kounrad project
The Kounrad project, located in Kazakhstan, has an associated goodwill balance
of $6,553,000 (2023: $7,547,000), 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 $9,877 per tonne (2023:
$8,696 per tonne) and a long-term price of $9,364 per tonne (2023: $8,444 per
tonne) based on market consensus prices and a discount rate of 8.07%
(2023: 8.07%) as well as market inflation rates. 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 69% in the copper price or an increase of 336% 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 of assets, 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. The treatment charges have been forecast over life of mine
using assumptions based on market data (level 2).
At the balance sheet date, the Board considers the base case forecasts to be
appropriate and balanced best estimates.
Sasa project
The Sasa project CGU comprises of the goodwill and property, plant and
equipment. During 2022, the goodwill balance of the Sasa project was impaired
to nil and the mineral rights were impaired by $34,195,000. The business
combination in 2017 was accounted for at fair value under IFRS 3, and
recoverable value is sensitive to changes in commodity prices, operational
performance, treatment charges, future cash costs of production and capital
expenditures.
The expected future cash flows utilised in the FVLCD model used for the 2022
impairment test were derived from estimates of projected future revenues based
on broker consensus commodity prices, treatment charges, future cash costs of
production and capital expenditures contained in the life of mine (LoM) plan.
The Group's discounted cash flow analysis reflected Probable Reserves as well
as Indicated Resources and certain inferred resources, which were considered
sufficiently certain and economically viable, and was based on detailed
research, analysis and modelling. The forecast operational and capital
expenditure reflected the transition of mining method from sub-level caving to
cut-and-fill and long-hole stoping. The climate change impacts were 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.
In line with IAS 36, as at 31 December 2024, the Group has reviewed the
indicators for impairment/reversal of impairment, including forecasted
commodity prices, treatment charges, discount rates, operating and capital
expenditure, foreign exchange rates and the mineral reserves and resources'
estimates.
At the balance sheet date, there are no indicators of impairment or a reversal
of impairment.
20. Investments
Shares in Group undertakings:
Company
31 Dec 24 31 Dec 23
$'000
$'000
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 interest % CAML % Date of incorporation
2024
2024
2023
CAML Exploration Limited 16, Turkistan Street, Office 56 Exploration 80 20 100 18 August 2023
Astana, District Esmil, Z05X0B4, Kazakhstan
CAML KZ Limited Masters House, 107 Hammersmith Road, Holding company 100 - 100 28 June 2021
London, W14 0QH, United Kingdom
CAML MK Limited Masters House, 107 Hammersmith Road, Seller of zinc and lead concentrate 100 - 100 5 September 2017
London, W14 0QH, United Kingdom
CAML Limited Masters House, 107 Hammersmith Road, Dormant company 100 - 100 25 April 2023
London, W14 0QH, United Kingdom
CMK Mining B.V. Prins Bernhardplein 200 1097 JB Amsterdam, Holding company 100 - 100 30 June 2015
The Netherlands
CMK Europe SPLLC Skopje Ivo Lola Ribar no. 57-1/6, 1000 Skopje, Holding company 100 - 100 10 July 2015
North Macedonia
Copper Bay Limited Masters House, 107 Hammersmith Road, Holding company 76 24 76 29 October 2010
London, W14 0QH, United Kingdom
Copper Bay (UK) Ltd Masters House, 107 Hammersmith Road, Dormant company 76 24 76 9 November 2011
London, W14 0QH, United Kingdom
Copper Bay Chile Limitada Ebro 2740, Oficina 603, Las Condes, Holding company 76 24 76 12 October 2011
Santiago, Chile
Minera Playa Verde Limitada Ebro 2740, Oficina 603, Las Condes, Exploration - Copper 76 24 76 20 October 2011
Santiago, Chile
Kounrad Copper Company LLP Business Centre No. 2, 4 Mira Street, Kounrad project 100 - 100 29 April 2008
Balkhash, Kazakhstan
(SX-EW plant)
Rudnik SASA DOOEL Makedonska Kamenica 28 Rudarska Str, Makedonska Kamenica, 2304, Sasa project 100 - 100 22 June 2005
North Macedonia
Sary Kazna LLP Business Centre No. 2, 4 Mira Street, Kounrad project (SUC operations) 100 - 100 6 February 2006
Balkhash, Kazakhstan
Details of the Company holdings that are not consolidated in the financial
information are:
Ken Shuak LLP Business Centre No. 2, 4 Mira Street, Shuak project (exploration) 10 90 10 5 October 2016
Balkhash, Kazakhstan
CAML MK Limited
For the year ended 31 December 2024, 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 2024. 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 2024, 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 2024. 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 February 2025, the Company agreed the sale of its 76% equity interest in
Copper Bay Limited and its subsidiaries. The whole consideration is contingent
on the potential future production of copper. Completion of the sale is
expected in March 2025.
Non-controlling interest
Group 31 Dec 24 31 Dec 23
$'000
$'000
Balance at 1 January 1,254 1,322
Loss/(profit) attributable to non-controlling interests 231 (68)
Balance at 31 December 1,485 1,254
Non-controlling interests were held at year end by third parties in relation
to CAML Exploration Limited, Copper Bay Limited, Copper Bay (UK) Limited,
Copper Bay Chile Limitada and Minera Playa Verde Limitada.
21. Investment in equity accounted associate
On 31 May 2024, CAML invested $3,851,000 (£3.0 million) in Aberdeen Minerals
Ltd (Aberdeen), acquiring a 28.7% shareholding, which has since been reduced
to 28.4% by the exercise of warrants held by other Aberdeen shareholders. The
carrying amount includes professional fees of $95,000 directly attributable to
the acquisition capitalised as part of the investment cost.
This investment has been accounted for using the equity method as set out in
the Group's accounting policies in Note 2.
% of ownership interest Carrying amount
Name of entity Country of incorporation/principal place of business 31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23
%
%
$'000
$'000
Aberdeen Minerals Ltd United Kingdom 28.4 - 3,775 -
The primary business of Aberdeen is the carrying out mineral exploration for
battery metals in north east Scotland, with a particular focus on nickel,
copper and cobalt.
Group and Company 31 Dec 24
$'000
Investment recognised at cost 3,851
Share of post-tax loss of investment in equity accounted associate (76)
Carrying amount of the Group's investment in equity accounted associate 3,775
The summarised financial information, prepared in accordance with IFRS, in
respect of Aberdeen is as follows:
Assets and liabilities 31 Dec 24
$'000
Non-current assets 1,371
Current assets 3,220
Current liabilities (189)
Non-current liabilities (140)
Net assets 4,262
Company's share of net assets 1,211
Income statement 9 months to 31 Dec 24
$'000
Losses (264)
Company's share of losses (76)
Aberdeen has a year end of 31 March and this reporting date was established
when the company was incorporated. The financial information for 31 December
has been reviewed and appropriate adjustments have been made to capatilise
exploration costs in accordance with the Group's accounting policies.
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. 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 warrant is remeasured at fair value at
each reporting date. The fair value valuation has resulted in the recognition
of a financial asset of $336,000 at year end and a corresponding gain in other
income and losses of $336,000 in the income statement (Note 10).
22. Held for sale assets
Post year end, the Company agreed the sale of the share capital of Copper Bay
Limited. Accordingly, the assets and liabilities of the Copper Bay entities
are presented as held for sale in the statement of financial position. The
exploration assets and property, plant and equipment held in Copper Bay were
fully written off in prior years. The results of the Copper Bay entities for
the year ended 31 December 2024 and the comparative year ended 31 December
2023 are shown within discontinued operations in the consolidated income
statement.
Assets of disposal group classified as held for sale:
Group 31 Dec 24 31 Dec 23
$'000
$'000
Cash and cash equivalents 60 74
Trade and other receivables 1 2
61 76
Liabilities of disposal group classified as held for
sale:
Group 31 Dec 24 31 Dec 23
$'000 $'000
Trade and other payables 24 94
24 94
During the year the following have been recognised in discontinued operations:
Loss from discontinued operations:
Group 2024 2023
$'000
$'000
General and administrative expenses (162) (382)
Foreign exchange (loss)/gain (21) 319
Loss from discontinued operations (183) (63)
Cash flows of disposal group classified as held for sale:
Group 2024 2023
$'000
$'000
Operating cash flows (14) 11
Total cash flows (14) 11
23. Trade and other receivables
Group Company
31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23
$'000 $'000 $'000 $'000
(restated)* (restated)**
Current receivables
Receivable due from subsidiary - - 651 681
Trade receivables 1,873 1,449 - -
Prepayments 2,379 1,677 354 342
Accrued income 832 651 - -
VAT receivable 2,190 1,247 238 184
Other receivables 456 450 192 208
7,730 5,474 1,435 1,415
Non-current receivables
Prepayments 2,947 9,326 - -
VAT receivable 3,669 4,475 - -
6,616 13,801 - -
* In accordance with IAS 1 paragraph 54, the Group has reclassified the 31
December 2023 income tax receivable balance of $6,750,000 from trade and other
receivables and it is now presented separately on the statement of financial
position.
** The Company has reclassified the 31 December 2023 loans due from subsidiary
from trade and other receivables and it is now presented separately as loans
due from subsidiary on the statement of financial position.
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.
As at 31 December 2024, the total Group VAT receivable was $5,859,000 (2023:
$5,722,000), which included a non-current amount of $3,669,000 (2023:
$4,475,000) 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.
Non-current prepayments primarily consist of prepaid capital expenditure on
the Sasa Dry Stack Tailings Project.
24. Loans due from subsidiary
31 Dec 24 31 Dec 23
Company $'000 $'000
(restated)*
Current receivables
Loans due from subsidiary 22,094 10,100
22,094 10,100
Non-current receivables
Loans due from subsidiary 263,210 282,244
263,210 282,244
* The Company has reclassified the 31 December 2023 loans due from subsidiary
from trade and other receivables and it is now presented separately in loans
due from subsidiary.
Loans due from subsidiary 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.
There are two loans due from subsidiaries. One loan is due from CAML MK
Limited, a directly owned subsidiary for $283,743,000 (2023: $292,142,000),
which accrues interest at a rate of 2.25% per annum (2023: 2.25%). There is
another loan due from CAML Exploration Limited, a directly owned subsidiary,
for $1,561,000 (2023: $202,000), which accrues interest at a rate of 6.90% per
annum (2023: 6.90%) and is repayable on demand. 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. The expected future cash flows
arising from the asset exceed the intercompany loan value under various
scenarios considered, which are outlined in the intangible assets impairment
assessment. The Company considers these loans to be recoverable and any
expected credit loss to be immaterial.
25. Inventories
31 Dec 24 31 Dec 23
$'000
$'000
Group
Raw materials and consumables 11,471 12,955
Finished goods 1,046 1,924
12,517 14,879
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
$224,000 (2023: nil) for defective consumables inventory. The total inventory
recognised through the income statement was $6,285,000 (2023: $7,697,000).
26. Cash and cash equivalents and restricted cash
Group Company
31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23
$'000
$'000
$'000
$'000
Cash at bank and on hand 67,318 56,832 57,400 45,326
Cash and cash equivalents 67,318 56,832 57,400 45,326
Restricted cash 327 318 - -
Total cash and cash equivalent including restricted cash 67,645 57,150 57,400 45,326
The restricted cash amount of $327,000 (2023: $318,000) is held at bank to
cover Kounrad subsoil user licence requirements.
The Group holds an overdraft facility in North Macedonia, and these amounts
are disclosed in Note 32.
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 24 31 Dec 23
$'000 $'000
Cash and cash equivalents as above (excluding restricted cash) 67,318 56,832
Cash at bank and on hand in held for sale assets (Note 22) 60 74
Balance per statement of cash flows 67,378 56,906
27. Share capital and premium
Group and Company Number of Ordinary Share Treasury
shares
Shares
premium
shares
$'000
$'000
$'000
At 1 January 2023 182,098,266 1,821 205,437 (15,831)
Exercise of share options - - 288 418
At 31 December 2023 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)
The par value of Ordinary Shares is $0.01 per share and all shares are fully
paid.
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
29). 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.
During the year, there was an exercise of share options by employees and
Directors that was partly settled by selling treasury shares. The proceeds of
disposal of treasury shares exceeded the purchase price by $100,000 (2023:
$288,000) and has been recognised in share premium. The remaining share
options exercises during the year were cash-settled amounting to $3,900,000
(2023: $1,394,000).
Group and Company Treasury shares EBT shares EBT joint share ownership
No.
No.
No.
At 1 January 2023 471,647 5,691,150 2,239,602
Disposal of treasury shares (278,322) - -
At 31 December 2023 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
28. 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 2024, a non-cash currency
translation loss of $27,261,000 (2023: gain of $12,925,000) was recognised
within equity.
29. 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, and,
then options could 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 2024 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 2024 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 2024, the share options granted in 2019, 2020 and 2021
(2023: 2019 and 2020) 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
2024, the share options granted in 2022, 2023 and 2024 (2023: 2022 and 2023)
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 24 31 Dec 23
$'000
$'000
Vesting period 3 years 0 months 3 years 0 months
Exercise price $0.01 $0.01
Risk-free interest rate 4.19% 3.36%
Volatility 3.81% 3.95%
Share price at year end £1.57 £1.81
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 2024, 6,976,892 (2023: 6,425,720) 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:
2024 2023
Average exercise Options Average Options
price in $ per
(number)
exercise
(number)
share option
price in $ per
share option
At 1 January 0.01 6,425,720 0.01 5,467,454
Granted 0.01 2,012,034 0.01 1,748,642
Exercised 0.01 (1,293,658) 0.01 (580,459)
Non-vesting 0.01 (167,204) 0.01 (209,917)
At 31 December 0.01 6,976,892 0.01 6,425,720
Non-vesting shares relate to options granted for which the performance targets
were not met. Out of the outstanding options of 6,976,892 (2023: 6,425,720),
1,972,648 options (2023: 2,285,498) were exercisable as at 31 December 2024
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 $2.73 (2023: $2.63) 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 2024 2023
of option
exercise
Options
Options
price $
(number)
(number)
24 Jul 13 23 Jul 23 0.01 - 36,801
3 Jun 14 2 Jun 24 0.01 - 93,064
8 Oct 14 7 Oct 24 0.01 - 160,000
22 Apr 15 21 Apr 25 0.01 212,121 212,121
18 Apr 16 17 Apr 26 0.01 227,312 338,940
21 Apr 17 20 Apr 27 0.01 168,279 279,763
2 May 18 1 May 28 0.01 309,031 484,090
30 May 19 29 May 29 0.01 273,340 349,269
16 Dec 20 15 Dec 30 0.01 198,223 337,866
15 Jul 21 14 Jul 31 0.01 584,341 974,392
22 Jun 22 21 Jun 32 0.01 1,339,979 1,410,772
12 Apr 23 11 Apr 33 0.01 1,652,232 1,748,642
9 Apr 24 8 Apr 34 0.01 2,012,034 -
6,976,892 6,425,720
Effective 1 January 2023, the Group has modified its share-based payments from
equity-settled to cash-settled. During 2023, the Company settled a number of
awards in cash, which is deemed sufficient to have established a past practice
of cash settlement under paragraph 41 of IFRS 2. The Group has made a
restatement to the 2023 financial information and a liability of $12,474,000
has been recognised as at 31 December 2023, reflecting the fair value of the
cash-settled share-based payments (See Note 40 for details). The changes in
the fair value of the cash-settled share-based payments of $3,966,000 (2023:
$4,803,000) has been reported within the consolidated income statement.
Group and Company 31 Dec 24 31 Dec 23
$'000
$'000
Share-based payment liability 10,926 12,474
Classified as:
Current 8,635 10,206
Non-current 2,291 2,268
The total intrinsic value at the end of 31 December 2024 for which the share
options have vested is $6,165,088 (2023: $8,349,614) which includes the value
of additional share options for dividends declared on those exercisable.
During the year, the Group settled a number of share options as
equity-settled. As a result, these share options were modified to
equity-settled on the date of exercise, with a corresponding increase in share
premium of $100,000 (2023: $288,000) and a reduction in treasury shares of
$1,528,000 (2023: $418,000) following settlement.
30. Trade and other payables
Group Company
31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23
$'000
$'000
$'000
$'000
(restated)* (restated)**
Trade and other payables 7,403 5,473 280 462
Accruals 5,792 7,628 5,397 6,214
Social security and other taxes 3,978 4,164 282 294
17,173 17,265 5,959 6,970
* In accordance with IAS 1 paragraph 54 the Group has reclassified the 31
December 2023 income tax payable balance of $62,000 from trade and other
payables and it is now presented separately on the statement of financial
position.
** The Company has reclassified the 31 December 2023 loans due to subsidiary
from trade and other payables and it is now presented in borrowings and loans
due to subsidiary on the statement of financial position.
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.
31. Silver stream commitment
The carrying amounts of the silver stream commitment for silver delivery are
as follows:
Group Company
31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23
$'000
$'000
$'000
$'000
Current 1,082 1,002 - -
Non-current 14,978 16,042 - -
16,060 17,044 - -
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.
32. Borrowings and loans due to subsidiary
Group Company
31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23
$'000
$'000
$'000
$'000
(restated)*
Current
Bank overdrafts
- Unsecured 252 326 - -
Loans due to subsidiary - - 42,220 28,146
Total current 252 326 42,220 28,146
* The Company has reclassified the 31 December 2023 loans due to subsidiary
from trade and other payables and it is now presented in borrowings and loans
due to subsidiary on the statement of financial position.
The movement on the overdrafts and loan due to subsidiary can be summarised as
follows:
Group Company
31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23
$'000
$'000
$'000
$'000
(restated)*
Balance at 1 January 326 1,390 28,146 37,407
Repayments of overdraft (58) (1,090) - -
Advance of loan due to subsidiary - - 71,500 45,000
Repayments of loan due to subsidiary - - (57,500) (54,000)
Finance charge interest 20 46 1,750 1,052
Interest paid (20) (46) (1,676) (1,313)
Foreign exchange (16) 26 - -
Balance at 31 December 252 326 42,220 28,146
Group
During the year, overdrafts of $58,000 were repaid (2023: $1,090,000) with
total interest paid of $20,000 (2023: $46,000).
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, an indirectly owned subsidiary. The initial loan relates to a
loan agreement dated 21 September 2023, which accrued interest at a rate of
6.90%. This loan, amounting to $57,500,000, was fully repaid in July 2024.
Subsequently, a new loan was entered into in August 2024, with a year-end
balance of $42,220,000. This new loan accrues interest at a rate of 6.67% per
annum and is repayable on demand.
The total interest paid on these loans amounted to $1,676,000 (2023:
$1,313,000).
The carrying value of loans due to subsidiary and overdrafts approximates fair
value:
Group Carrying amount Fair value
31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23
$'000 $'000 $'000 $'000
Bank overdrafts 252 326 252 326
252 326 252 326
The carrying value of loans due to subsidiary and overdrafts approximates fair
value:
Company Carrying amount Fair value
31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23
$'000 $'000 $'000 $'000
Loan due to subsidiary 42,220 28,146 42,220 28,146
42,220 28,146 42,220 28,146
33. Provisions for other liabilities and charges
Group
Group Asset Employee retirement Other Legal Total
retirement obligation
benefits
employee
claims
$'000
$'000
$'000
benefits Leasehold dilapidation
$'000
$'000
$'000
At 1 January 2023 20,543 244 288 - 2 21,077
Change in estimate 3,687 62 99 93 - 3,941
Settlements of provision - (34) (21) - - (55)
Unwinding of discount (Note 15) 1,707 - - - - 1,707
Exchange rate difference 163 10 12 1 - 186
At 31 December 2023 26,100 282 378 94 2 26,856
Change in estimate (576) 85 121 - - (370)
Settlements of provision - (14) (19) - - (33)
Unwinding of discount (Note 15) 2,013 - - 7 - 2,020
Exchange rate difference (2,366) (18) (24) (2) - (2,410)
At 31 December 2024 25,171 335 456 99 2 26,063
Non-current 25,171 295 433 99 2 26,000
Current - 40 23 - - 63
At 31 December 2024 25,171 335 456 99 2 26,063
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 7.61% (2023: 6.30%)
and discounted to 2024 terms using a nominal pre-tax risk-free discount rate
of 6.71% (2023: 6.70%). 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 required in 2039.
During 2021, Sasa engaged an external expert consultant to prepare an updated
conceptual closure plan. 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 4.79% (2023: 4.68%) and
discounted to 2024 terms using a discount rate of 9.52% (2023: 9.14%). The
costs of the related assets are depreciated over the useful life of the assets
and are included in property, plant and equipment.
The decrease in estimate in relation to the asset retirement obligation of
$576,000 is due to an amendment to the timing at Sasa surrounding the capping
of the tailings facilities following discussions with regulators and an update
to the Kounrad and Sasa discount rates and inflation rates as explained above
using latest assumptions.
b) Employee retirement benefits
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.
c) Other employee benefits
The Group is also obliged to pay jubilee anniversary awards in North Macedonia
for each ten years of continuous service of the employee. Provisions for
termination and retirement obligations are recognised in accordance with
actuary calculations. Basic 2024 actuary assumptions are used as follows:
Discount rate: 5.5%
Expected rate of salary increase: 5.0%
d) Legal claims
The Group is party to certain legal claims, and the recognised provision
reflects management's best estimate of the most likely outcome. The Group
reviews outstanding legal cases following developments in the legal
proceedings and at each reporting date, in order to assess the need
for provisions and disclosures in its financial information. Among the
factors considered in making decisions on provisions are the nature of
litigation, claim or assessment, the legal process and potential level of
damages in the jurisdiction in which the litigation, claim or assessment has
been brought, the progress of the case (including the progress after the date
of the financial statements but before those statements are issued), the
opinions or views of legal advisers, experience on similar cases and any
decision of the Group's management as to how it will respond to the
litigation, claim or assessment.
34. Cash generated from operations
Group Note 2024 2023
$'000
$'000
(restated)*
Profit before income tax including discontinued operations 76,527 64,822
Adjustments for:
Depreciation and amortisation 27,088 28,192
Silver stream commitment 7 (984) (1,136)
Share of post-tax loss of investment in equity accounted associate 21 76 -
Cash-settled share-based payments 29 (3,900) (1,394)
Fair value movement of share-based payment liability 29 3,966 4,803
Loss on disposal of property, plant and equipment 18 9 204
Foreign exchange (gain)/loss (5,638) 3,378
Other income and losses, net 546 -
Finance income 14 (2,364) (1,992)
Finance costs 15 2,192 1,852
Changes in working capital:
Decrease/(increase) in inventories 3,250 (1,846)
Increase in trade and other receivables (1,561) (5,784)
(Decrease)/increase in trade and other payables (5,276) 1,554
Provisions for other liabilities and charges (34) (55)
Cash generated from operations 93,897 92,598
* See Note 40 for details regarding the prior year restatement.
The increase in trade and other receivables of $1,561,000 (2023: $5,784,000)
includes a movement in the Group VAT receivable balance of $1,125,000 (2023:
$5,530,000), which is offset against Group corporate income tax payable during
the year.
35. Commitments
Significant expenditure contracted for at the end of the reporting period but
not recognised as liabilities is as follows:
Group 31 Dec 24 31 Dec 23
$'000
$'000
Property, plant and equipment 5,165 4,524
5,165 4,524
36. Dividend per share
During the year, the Company paid $40,869,000 (2023: $41,525,000), which
consisted of a 2024 interim dividend of 9 pence per share and 2023 final
dividend of 9 pence per share (2023: 2023 interim dividend of 9 pence per
share and 2022 final dividend of 10 pence per share).
37. Related party transactions
Key management remuneration
Key management remuneration comprises the Directors' remuneration, including
Non-Executive Directors, and is as follows:
2024 2024 2024 2024 2024 Employers' 2024 2023
Basic salary/fees
Annual
Pension
Benefits in kind
NI
Total
Total
$'000
bonus
$'000
$'000
$'000
$'000
$'000
$'000
Executive Directors:
Nigel Robinson 575 419 - 12 388(*) 1,394 1,129
Gavin Ferrar 485 357 13 9 113 977 984
Louise Wrathall 389 291 23 5 145(*) 853 782
Non-Executive Directors:
Nick Clarke 223 - - - 257(*) 480 246
Mike Prentis 115 - - - 14 129 122
Dr Gillian Davidson 108 - - - 13 121 120
Roger Davey 108 - - - 13 121 119
David Swan 108 - - - 13 121 119
Dr Mike Armitage 96 - - - 12 108 104
Nurlan Zhakupov** - - - - - - 23
2,207 1,067 36 26 968 4,304 3,748
* Employers' NI includes amounts payable on the exercise of share options
as disclosed below.
** Resigned on 3 April 2023.
During the year, the Non-Executive Chairman, Nick Clarke, and the Executive
Directors, Nigel Robinson and Louise Wrathall, exercised 1,383,849 options for
a total share option gain of $3,844,000, as set out in the table below:
Name Position Number of options over shares exercised Share option
gain
$'000
Nick Clarke Non-Executive Chairman 588,209 1,634
Nigel Robinson Executive Officer 657,749 1,827
Louise Wrathall Chief Financial Officer 137,891 383
1,383,849 3,844
The directors who hold an interest in the issued share capital of the Company
during the year received dividends amounting to:
Name Position 2024 2023
Dividends Dividends
$'000 $'000
Nick Clarke Non-Executive Chairman 321 323
Nigel Robinson Executive Officer 151 151
Louise Wrathall Chief Financial Officer 2 2
Gavin Ferrar Chief Executive Officer 2 2
Dr Mike Armitage Non-Executive Director 6 6
Dr Gillian Davidson Non-Executive Director 2 2
Mike Prentis Non-Executive Director 4 4
David Swan Non-Executive Director 2 2
490 492
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 $569,000 (2023: $611,000). 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 $408,000 (2023: $455,000). This is a related party by
virtue of common Directors.
38. Deferred income tax asset and liability
Group
The movements in the Group's deferred tax asset and liability are as follows:
Group At Currency translation Credit to At
1 January
differences $'000
income
31 December
2024
statement
2024
$'000
$'000
$'000
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)
Reflected in the statement of financial position as: 31 Dec 24 31 Dec 23
$'000
$'000
Deferred tax asset 561 512
Deferred tax liability (16,613) (18,983)
Group At Currency translation (Debit)/credit to income At
1 January
differences $'000
statement
31 December
2023
$'000
2023
$'000
$'000
Other temporary differences (326) (5) (2,050) (2,381)
Fair value adjustment on Kounrad Transaction (4,457) (79) 277 (4,259)
Fair value adjustment on CMK acquisition (12,175) (423) 767 (11,831)
Deferred tax liability, net (16,958) (507) (1,006) (18,471)
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 CAMK
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 $884,000 during the year (2023: $1,042,000) to reflect the
tax consequences of depreciating the recognised fair values of the assets
during the year.
Group 31 Dec 2024 31 Dec 2023
$'000 $'000
Deferred tax liability due within 12 months (1,568) (723)
Deferred tax liability due after 12 months (15,045) (18,260)
Deferred tax liability (16,613) (18,983)
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
losses of $32,496,000 (2023: $30,705,000), arising from asset retirement
obligations of $2,708,000 (2023: $2,815,000) and in respect of share-based
payments nil (2023: $260,000) as there is insufficient evidence of future
taxable profits within the entities concerned. Unrecognised losses can be
carried forward indefinitely.
Company
At 31 December 2024 and 2023, the Company had no recognised deferred tax
assets or liabilities.
At 31 December 2024, the Company had not recognised potential deferred tax
assets arising from losses of $19,841,000 (2023: $14,362,000) as there is
insufficient evidence of future taxable profits. The losses can be carried
forward indefinitely.
At 31 December 2024, the Company had other deferred tax assets of nil (2023:
$260,000) in respect of share-based payments and other temporary differences
that had not been recognised because of insufficient evidence of future
taxable profits.
39. Events after the reporting period
In February 2025, the Company agreed the sale of its 76% equity interest in
Copper Bay Limited and its subsidiaries. The whole consideration is contingent
on the potential future production of copper. Completion of the sale is
expected in March 2025. Copper Bay Limited was held for sale during the
reporting period.
40. Prior year restatement
In October 2024, the Company received a letter from the Corporate Reporting
Review team of the Financial Reporting Council (FRC) as part of its regular
review and assessment of corporate reporting in the UK, requesting further
information in relation to CAML's 2023 Annual Report and Accounts. The FRC's
review is limited to the published 2023 Annual Report and Accounts; it does
not benefit from a detailed understanding of underlying transactions and
provides no assurance that the Annual Report and Accounts are correct in all
material respects. As a result of the FRC's review, the Group has made two
restatements to the 2023 financial information
1. Silver stream
The Group has reclassified an amount of $8,181,000 relating to open market
silver purchases made to fulfil the silver stream arrangement (see Notes 6 and
31). This amount had previously been reported as a deduction within revenue,
so as to effectively only report revenue from the Group's operating mines,
with the Group also disclosing a reconciliation to gross revenue, which was
determined to be an alternative performance measure. However, in line with
IFRS 15, Revenue from Contracts with Customers, the silver purchases have been
reclassified to cost of sales. As this is a reclassification within the
consolidated income statement, there is no change to gross profit for the
year.
2. Share-based payments
Additionally, following the interactions with the FRC, effective 1 January
2023, the Group has modified its equity-settled share-based payments to
cash-settled (Note 29). During 2023, the Company settled a number of awards in
cash, which is deemed sufficient to have established a past practice of cash
settlement under paragraph 41 of IFRS 2. As a result of this modification, a
liability of $12,474,000 has been recognised as at 31 December 2023,
reflecting the fair value of the cash-settled share-based payments. The
changes in the fair value of the cash-settled share-based payments has been
reported within the consolidated income statement.
The financial information line items affected in the prior year are as
follows:
Group Company
Statement of financial position (extract) 31 Dec 23 Increase/ 31 Dec 23 31 Dec 23 Increase/ 31 Dec 23
$'000
$'000
$'000
$'000
(decrease)
(decrease)
(restated) (restated)
Share-based payment liability - current - 10,206 10,206 - 10,206 10,206
Share-based payment liability - non-current - 2,268 2,268 - 2,268 2,268
Retained earnings (excl. share-based payment reserve) 298,134 (263) 297,871 105,154 (263) 104,891
Share-based payment reserve 12,211 (12,211) - 12,211 (12,211) -
Retained earnings 310,345 (12,474) 297,871 117,365 (12,474) 104,891
Total equity 380,057 (12,474) 367,583 309,498 (12,474) 297,024
Group
Consolidated income statement (extract) 2023 Increase/ 2023
$'000
$'000
(decrease)
(restated)
Revenue 195,280 8,181 203,461
Cost of sales (92,894) (8,181) (101,075)
Administrative expenses (31,231) 4,540 (26,691)
Fair value movement of share-based payment liability - (4,803) (4,805)
Profit for the year 37,382 (263) 37,119
The profit for the parent company for the prior year was restated by a
decrease of $263,000 from $62,087,000 to $61,824,000.
The prior year cash outflow for the cash-settled share-based payments of
$1,394,000 has been reclassified from cash flows from financing activities to
cash generated from operations (Note 34) in the consolidated statement of cash
flows.
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