Central Asia Metals (9C3) Q2 2026 Earnings Report

The call presented a clearly positive operational and financial performance: strong revenue (+46%), EBITDA (+89%), cash generation (adjusted FCFF +189%), robust cash balance ($97.2m), dividend reinstatement (8p) and tangible exploration and M&A progress (Cygnus). Challenges include safety incidents, higher tax/withholding, FX and inflationary cost pressure, silver-related P&L volatility, some hedge/unrealized losses and pending assay results that create short‑term uncertainty. On balance, the highlights—particularly the large improvements in profitability, cash generation and strategic growth options—outweigh the lowlights.

Guidance from the call reiterated that the group is on track to meet full‑year 2026 production and spend targets: Kounrad copper cathode 12,000–13,000 t and Sasa zinc 18,000–20,000 t / lead 26,000–28,000 t, with group sustaining CapEx guidance of $14.5–17.5m (H1 CapEx $9.5m: Sasa $8.0m, Kounrad $1.4m) and Kazakhstan exploration of $3.0–3.5m (H1 exploration $1.6m). Financially the board set an 8p interim dividend (40% of adjusted free cash flow and midpoint of the 30–50% policy) underpinned by H1 adjusted free cash flow of $46.8m (up 189% YoY), revenue $145.5m, EBITDA $75.5m (52% margin) and $97.2m cash on hand; working capital and tax timing (cash tax paid $19.8m including ≈$10m withholding tax) were flagged as drivers of near‑term cash movements. Operational and market headwinds/benefits to monitor include 50% of Sasa zinc hedged at $3,011 (≈$1.4m unrealised hedge loss recorded), treatment charges of $2.7m (down $2.2m YoY), high silver prices (spikes to ~$115/oz), electricity tariff rises at Kounrad (tariff up to ~$0.07/kWh; solar supplied 18% of H1 power) and ongoing inventory reductions (inventory down ~$3m). Management also guided that Chibougamau (Cygnus) completion is targeted for October with a PEA/PEA‑related study expected next year, and that any development CapEx for Chibougamau would be modest in year one, with larger development spend likely to ramp into H2 2027/2028.