REG - Central Asia Metals - 2023 Operations Update

Central Asia MetalsAnnouncement

11/01/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240111:nRSK3056Za&default-theme=true

RNS Number : 3056Z  Central Asia Metals PLC  11 January 2024

 

11 January 2024

 

CENTRAL ASIA METALS PLC

('CAML' or the 'Company')

2023 Operations Update

Central Asia Metals plc (AIM: CAML) today provides a Q4 and full year 2023
operations update for the Kounrad dump leach, solvent extraction and
electro-winning ('SX-EW') copper recovery plant in Kazakhstan ('Kounrad') and
the Sasa zinc-lead mine in North Macedonia ('Sasa').

2023 summary

-      Zero Lost Time Injuries ('LTIs') at Kounrad and one LTI at Sasa

-      Copper production at Kounrad, towards the upper end of guidance
range

o  13,816 tonnes

-      Zinc and lead production at Sasa, in the middle of guidance range

o  Zinc in concentrate production of 20,338 tonnes

o  Lead in concentrate production of 27,794 tonnes

-      Construction of Kounrad solar power plant completed and generating
renewable power for the operation

-      Central Decline now operational

-      Construction of Sasa Paste Backfill Plant completed and now
operational

-      New exploration licence granted in Kazakhstan targeting mid-scale
copper deposits

-      Cash balance at 31 December 2023 of $57.2 million

 

2024 outlook

 

-      Production guidance

o  Copper: 13,000 to 14,000 tonnes

o  Zinc in concentrate: 19,000 to 21,000 tonnes

o  Lead in concentrate: 27,000 to 29,000 tonnes

-      Construction of Dry Stack Tailings Plant and initial landform is
expected to be completed in H1 2024

-      Reduced carbon emissions expected in 2024 due to contribution of
solar power from new Kounrad facility

-      Increased exploration work planned in Kazakhstan through CAML
Exploration subsidiary

-      Business development remains a priority

 

CAML production summary

 Metal production (tonnes)  Q4 2023  2023    2022
 Copper                     3,439    13,816  14,254
 Zinc                       5,446    20,338  21,473
 Lead                       7,022    27,794  27,354

 

Nigel Robinson, Chief Executive Officer, commented:

"I am pleased to report steady, safe and reliable production from both of our
operations during 2023.

"At Kounrad we had a strong year, achieving copper production towards the top
end of our guidance range and, most importantly, in a safe environment with
2,054 days since the last LTI.  At Sasa, we achieved production at the middle
of our guidance range whilst also delivering on the construction of the
required infrastructure to commence the transition to the paste fill mining
methods. The construction of the Dry Stack Tailings Plant and landform have
begun and will be a key focus for 2024.

"At Kounrad, I was delighted to officially open the solar power plant in
November 2023.  It is anticipated that this facility will provide 16-18% of
the site's electrical needs on an annualised basis and reduce Kounrad's Scope
1 and 2 emissions by 10% versus 2020.

"We look forward to delivering another year of safe and reliable base metals
production at our operations and looking for further opportunities to grow the
business. We were delighted to have received confirmation in December 2023
that one of our new licence applications for our target generation exploration
programme in Kazakhstan had been granted and we look forward to a full
exploration season this year.

"Our 2023 annual results are scheduled to be released on 25 March 2024, when
our final dividend for 2023 will also be announced."

Health and Safety

There were no LTIs at Kounrad or Sasa during Q4 2023. During the 12 months
ended 31 December 2023, there were no LTIs at Kounrad and one at Sasa.

Kounrad

Production and sales

Kounrad delivered Q4 2023 copper production of 3,439 tonnes, bringing output
for 2023 to 13,816 tonnes.

Copper sales during Q4 2023 were 3,469 tonnes, bringing the total for 2023 to
13,687 tonnes. The Kounrad operation has now produced over 152,000 tonnes of
copper cathode since 2012.

Solar power plant

In Q4 2023, the solar power plant was constructed and is now generating
renewable power for the site. With the majority of the installation and other
works being conducted in-house, the project was completed on schedule and
under budget at a final cost of below $3.5 million.

Sasa

Production and sales

In Q4 2023, mined and processed ore were 210,301 tonnes and 209,719 tonnes
respectively, bringing the total for 2023 to 805,621 tonnes of ore mined and
805,819 tonnes of ore processed. The average head grades for the quarter were
3.03% zinc and 3.59% lead, and for the year were 2.97% and 3.70% respectively.
The average 2023 metallurgical recoveries were 85.0% for zinc and 93.1% for
lead.

Sasa produces a zinc concentrate and a separate lead concentrate. In Q4 2023,
10,720 tonnes of concentrate containing 50.8% zinc and 9,915 tonnes of
concentrate containing 70.8% lead were produced. Total production for 2023 was
40,226 tonnes of zinc concentrate at an average grade of 50.6% and 39,136
tonnes of lead concentrate at an average grade of 71.0%. 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, Q4 2023 payable production of zinc was 4,589 tonnes and of lead
was 6,670 tonnes, bringing total 2023 payable production to 17,120 tonnes of
zinc and 26,404 tonnes of lead. Payable base metal in concentrate sales from
Sasa in Q4 2023 were 4,517 tonnes of zinc and 6,416 tonnes of lead and for
2023 were 17,113 tonnes of zinc and 26,298 tonnes of lead.

During Q4 2023, Sasa sold 82,842 ounces of payable silver to Osisko Gold
Royalties and during 2023 sold 345,805 ounces, in accordance with its
streaming agreement.

                             Units    Q4 2023  2023     2022
 Ore mined                   t        210,301  805,621  806,069
 Plant feed                  t        209,719  805,819  806,653
 Zinc grade                  %        3.03     2.97     3.15
 Zinc recovery               %        85.6     85.0     84.6
 Lead grade                  %        3.59     3.7      3.63
 Lead recovery               %        93.3     93.1     93.4
 Zinc concentrate            t (dry)  10,720   40,226   42,824
 -      Grade                %        50.8     50.6     50.1
 -      Contained zinc       t        5,446    20,338   21,473
 Lead concentrate            t (dry)  9,915    39,136   38,439
 -      Grade                %        70.8     71.0     71.2
 -      Contained lead       t        7,022    27,794   27,354

 

Paste fill mining methods transition

The initial development of the Central Decline is complete, and the decline is
now operational. Construction of the Paste Backfill Plant is complete, the
plant is now operational and extraction of ore by paste fill mining methods is
underway. Construction of the Dry Stack Tailings Plant and landform commenced
in Q4 2023.

Exploration in Kazakhstan

During 2023, CAML developed an arrangement with a team of experienced
explorers, Terra Exploration, forming a new subsidiary, CAML Exploration.
Potential target areas have been reviewed and remain under review, and
currently one exploration licence has been granted, with another four in
application. The Company expects to spend up to $3 million during 2024 on
continuing its target generation exploration work in Kazakhstan.

2024 guidance

CAML targets 2024 Kounrad copper production of between 13,000-14,000 tonnes of
cathode. While the transition to the paste fill mining methods is underway at
Sasa, CAML maintains its ore mined guidance year on year of 790,000 to 810,000
tonnes and its expected metal production of 19,000 to 21,000 tonnes of zinc in
concentrate and 27,000 to 29,000 tonnes of lead in concentrate.

CAML expects its 2023 capex to be approximately 10% below the guidance range
of between $28 million and $30 million. In 2024, Sasa expects to spend between
$8 million and $9 million in completing the construction of the Dry Stack
Tailings Plant and Landform and completing the new Central Decline.  CAML
also expects to commit between $14 million and $16 million to sustaining
capital expenditure.

Cash

As of 31 December 2023, CAML had a cash balance of $57.2 million and remains
debt free.

 

For further information contact:

 Central Asia Metals                             Tel: +44 (0) 20 7898 9001
 Nigel Robinson
 CEO
 Gavin Ferrar
 CFO
 Louise Wrathall                                 louise.wrathall@centralasiametals.com
 Director of Corporate Development
 Emma Chetwynd Stapylton                         emma.chetwyndstapylton@centralasiametals.com
 Group Investor Relations Manager

 Peel Hunt (Nominated Advisor and Joint Broker)  Tel: +44 (0) 20 7418 8900
 Ross Allister
 David McKeown

 BMO Capital Markets (Joint Broker)              Tel: +44 (0) 20 7236 1010
 Thomas Rider
 Pascal Lussier Duquette

 BlytheRay (PR Advisors)                         Tel: +44 (0) 20 7138 3204
 Tim Blythe
 Megan Ray

Note to editors:

 

Central Asia Metals, an AIM-listed 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 CAML Exploration subsidiary was
recently formed to progress early exploration opportunities in Kazakhstan.

For further information, please visit www.centralasiametals.com
(http://www.centralasiametals.com/)  and follow CAML on Twitter at
@CamlMetals and on LinkedIn at Central Asia Metals Plc

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDURABRSAUAAAR