For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230711:nRSK5520Fa&default-theme=true
RNS Number : 5520F Central Asia Metals PLC 11 July 2023
11 July 2023
CENTRAL ASIA METALS PLC
('CAML' or the 'Company')
H1 2023 Operations Update
Central Asia Metals plc (AIM: CAML) today provides a H1 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').
H1 2023 operational summary
- Zero lost time injuries ('LTIs') at Kounrad
- One LTI at Sasa
- Kounrad copper production, 6,716 tonnes
- Sasa zinc in concentrate production, 9,764 tonnes
- Sasa lead in concentrate production, 13,734 tonnes
Group cash
- Cash in the bank on 30 June 2023, $50.6 million
Outlook
- On track to achieve 2023 full year 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
CAML production summary
Metal production (tonnes) Q2 2023 Q1 2023 H1 2023 H1 2022
Copper 3,380 3,336 6,716 6,617
Zinc 4,847 4,917 9,764 10,465
Lead 7,116 6,618 13,734 13,827
Nigel Robinson, Chief Executive Officer, commented:
"We are pleased to report a positive start to 2023 with strong production
across the Group, meaning we are on track to meet guidance. I am particularly
proud to mention that Kounrad achieved over 4 million LTI free hours by the
end of H1 2023, an outstanding achievement for an operation with a relatively
small workforce.
"On 27 May 2023, we witnessed the joining of the Central Decline at Sasa which
was developed both from surface and the 910 metre level. Wet commissioning of
the Paste Backfill Plant has begun and the ground works for the Dry Stack
Tailings Plant are underway.
"Benefitting from our low production costs, CAML continues to generate
enviable cash flow and has a strong balance sheet with US$50.6 million in cash
and no debt. This enables us to continue to pay some of the highest dividends
in the sector whilst actively considering various business development
opportunities."
"Our H1 2023 financial results will be released on 13 September 2023, when we
will also announce our interim dividend."
Health and Safety
At the end of H1 2023, Kounrad had achieved 1,870 LTI-free days. There was one
LTI recorded at Sasa during Q2 2023.
Kounrad
Kounrad Q2 2023 copper production of 3,380 tonnes brings output for the first
six months of 2023 to 6,716 tonnes. Copper sales during H1 2023 were 6,315
tonnes.
Solid progress on the construction of the 4.77MW solar farm was achieved
during H1 2023. At the end of the period, all project-related equipment and
materials had been received at site. Levelling earthworks are complete, the
perimeter security fence installed, sub-station concrete bases poured, and
installation of the Photo-Voltaic support frames had commenced. CAML remains
on track for completion of this project during Q4 2023.
Sasa
Production
In Q2 2023, mined and processed ore were 199,731 tonnes and 200,705 tonnes
respectively, bringing the H1 2023 total to 396,234 tonnes mined and 396,673
tonnes processed. The average head grades for the Q2 2023 period were 2.85%
zinc and 3.85% lead, and for H1 2023 were on average 2.90% and 3.72%
respectively. The average H1 2023 metallurgical recoveries were 84.9% for zinc
and 93.1% for lead.
Sasa produces a zinc concentrate and a separate lead concentrate. In Q2 2023,
9,541 tonnes of concentrate containing 50.8% zinc and 10,020 tonnes of
concentrate containing 71.0% lead were produced. This brings total
production for H1 2023 to 19,257 tonnes of zinc concentrate at a grade of
50.7% and 19,302 tonnes of lead concentrate at a grade of 71.2%.
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, Q2 2023 payable production was 4,083 tonnes of zinc
and 6,760 tonnes of lead, bringing total payable production for H1 2023 to
8,223 tonnes of zinc and 13,047 tonnes of lead.
Payable base metal in concentrate sales for H1 2023 were 8,382 tonnes of zinc
and 12,416 tonnes of lead. At the end of Q2 2023, the additional lead
concentrate stocks relate to material loaded for shipment at Burgas that had
not departed. Departure of this stock is scheduled in the next fortnight.
During H1 2023, Sasa sold 167,919 ounces of payable silver to Osisko Gold
Royalties, in accordance with its streaming agreement.
Units Q2 2023 Q1 2023 H1 2023 H1 2022
Ore mined t 199,731 196,503 396,234 402,208
Plant feed t 200,705 195,968 396,673 404,391
Zinc grade % 2.85 2.95 2.90 3.07
Zinc recovery % 84.7 85.2 84.9 84.3
Lead grade % 3.85 3.59 3.72 3.66
Lead recovery % 92.1 94.2 93.1 93.5
Zinc concentrate t (dry) 9,541 9,716 19,257 20,959
- Grade % 50.8 50.6 50.7 49.9
- Contained zinc t 4,847 4,917 9,764 10,465
Lead concentrate t (dry) 10,020 9,282 19,302 19,507
- Grade % 71.0 71.3 71.2 70.9
- Contained lead t 7,116 6,618 13,734 13,827
Transition to Paste Fill - Development Projects
On 27 May 2023, the new Central Decline tunnelling 'holed through'. The
tunnel was developed both from surface and the 910 metre level to complete
Phase 1. This will be a major improvement to the ventilation and efficient
transportation of ore to the surface in future years.
Construction of the Paste Backfill Plant and underground reticulation system
is now materially complete and wet commissioning of the plant is underway.
Ground works for the Dry Stack Tailings Plant have commenced.
Group cash and debt position
As of 30 June 2023, CAML had cash in the bank of $50.6 million and no debt.
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
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
Rachael Brooks
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.
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 UPDQBLFFXDLBBBZ