Central Asia Metals Shares Plunge 20% After Sasa Mine Life Slashed by Five Years; $120 Million Impairment Expected

Central Asia Metals (CAML) shares fall 20% as Sasa mine life is reduced to 2034, leading to a $120 million impairment charge.

By: AXL Media

Published: Mar 3, 2026, 7:30 AM EST

Source: The information in this article was sourced from Proactive Investors

Market Reaction to Shorter Mine Life

Central Asia Metals PLC (CAML) faced a sharp sell-off in early Tuesday trading, with shares falling approximately 20% to 191.1p. The investor anxiety stems from a comprehensive 2025 performance review of the Sasa mine, located in North Macedonia. The updated life-of-mine (LOM) plan now estimates that operations at the Svinja Reka deposit will conclude in 2034. This represents a substantial five-year reduction compared to the previous technical assumptions, which had modeled production well into the late 2030s.

Impairment and Financial Impact

The shortened operational window has forced the AIM-listed group to announce a non-cash impairment charge of between $100 million and $120 million. This charge will impact the reported earnings for the 2025 financial year. Chief Executive Gavin Ferrar sought to reassure the market, emphasizing that while the impairment is a significant accounting adjustment, it "does not in any way affect the Group's cash generation." He further noted that the company’s ability to fund its capital projects and sustain its industry-leading dividend remains intact.

Declining Ore Reserves

The revised plan is underpinned by a smaller Ore Reserve base. As of December 31, 2025, Ore Reserves at Sasa were reported at 6.9 million tonnes (Mt) grading 2.5% zinc and 3.5% lead. This is a marked decrease from the 9.2 Mt reported just one year prior. The company attributed this decline to several factors, including a necessary redesign of the mine's lower levels, the implementation of higher cut-off grades to ensure profitability, and updated commercial assumptions regarding metal prices and operational costs in the current inflationary environment.