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 restated¹: $203.5 million)

o  Group earnings before interest, tax, depreciation and amortisation (EBITDA²) of $101.8 million (2023 restated: $101.0 million)

o  EBITDA margin² of 47% (2023 restated: 50%)

o  Group free cash flow (FCF²) 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 million³ (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 (LTIFR⁴) 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

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

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

For further information contact:

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

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.

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.

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:

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).

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:

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%.

For 2023, the pro-rata contribution was 37%.

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