REG - Central Asia Metals - Q1 2026 Operations Update

Central Asia MetalsAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260416:nRSP6487Aa&default-theme=true

RNS Number : 6487A  Central Asia Metals PLC  16 April 2026

16 April 2026

Central Asia Metals PLC

(the 'Group', the 'Company' or 'CAML')

Q1 2026 Operations Update

Central Asia Metals PLC (AIM: CAML) provides its Q1 2026 operations update for
the Kounrad dump-leach, solvent extraction-electrowinning (SX-EW) copper
operation in Kazakhstan and the Sasa zinc-lead mine in North Macedonia.

Operational summary

-    Kounrad copper production of 2,880 tonnes

-    Sasa zinc-in-concentrate production of 4,282 tonnes

-    Sasa lead-in-concentrate production of 6,529 tonnes

-    Initiatives at Sasa continue:

o  New collective bargaining agreement signed with trades unions

o  By the end of Q1 2026 headcount reduced by just over 11%

o  Ongoing work to improve orebody understanding, aimed at adding resources
and reserves

-    One lost time injury (LTI) at Kounrad and one at Sasa

-    Preparations completed for maiden drilling programmes across Group
exploration projects in Kazakhstan; additional licence applications submitted,
with others under negotiation

-    Phase 3 drilling programme commenced in March at 32.6%-owned Aberdeen
Minerals' Arthrath base-metals project in northeast Scotland

Outlook

-    Production guidance for FY2026 reiterated:

o  Copper of 12,000 to 13,000 tonnes

o  Zinc-in-concentrate of 18,000 to 20,000 tonnes

o  Lead-in-concentrate of 26,000 to 28,000 tonnes

-     Group 2026 exploration in Kazakhstan to include ~2,000 metres at
Yuzhnoe and ~2,000 metres at Otyar in the Chingiz-Tarbagatay belt; drilling
results expected by year end, supporting assessment of copper and polymetallic
discovery potential

-    Results expected in Q3 2026 from Aberdeen Minerals' Phase 3 drilling
to test southwestern target zone at Arthrath

CAML production summary

 Metal production (tonnes)  Q 1 2026  Q1 2025
 Copper                     2,880     2,852
 Zinc                       4,282     4,603
 Lead                       6,529     6,608

Gavin Ferrar, Chief Executive Officer, commented:

"Kounrad recorded a solid production result in Q1 2026, matching the total
produced in the corresponding period last year despite abnormally cold
weather. I would like to express my admiration for the site team, whom I
witnessed first-hand in February working to maintain Kounrad's dump-leach
irrigation system in sub-zero temperatures.

"Similarly, I would like to commend the team at Sasa for the positive way in
which they have faced the twin challenges imposed by changing geological
conditions and cost pressures.

"During Q1 2026 we signed a new collective bargaining agreement with the
trades unions at Sasa, providing certainty with respect to labour rates
through to Q1 2028. The negotiations also included productivity measures
designed to ensure the workforce shares more directly in the success of the
operation. Meanwhile, following the review of Sasa's headcount initiated last
year, by the end of Q1 2026 we had achieved a cumulative reduction of just
over 11%.

"2026 promises to be an exciting year for our project pipeline, with maiden
drilling programmes at our Group exploration projects in Kazakhstan. In
Scotland, we have funded an additional phase of drilling at our associate
company, Aberdeen Minerals, to test a new target zone at the Arthrath project.
We eagerly await the results of these programmes, and the potential value
additions they may offer."

Health and Safety

Kounrad and Sasa each recorded one LTI during Q1 2026. Prior to the LTI
recorded at Sasa, the operation had achieved 416 days LTI-free.

Kounrad

Kounrad's Q1 2026 copper production was 2,880 tonnes, and sales during the
quarter were 2,703 tonnes. Q1 2026 production was slightly above the planned
budget, with the dump-leach parameters operating according to expected levels.
This was despite the fact that temperatures during Q1 2026 were the coldest at
Kounrad in more than five years, including two periods of several days with
temperatures as low as minus 35 degrees centigrade.

Sasa

Tonnes mined and milled during Q1 2026 were broadly consistent with the
corresponding period in 2025. The head grade for lead was essentially
unchanged, and that for zinc was slightly lower.

Work to improve near-term mine planning continues, as part of measures taken
to address the increasing variability of the orebody with depth. These include
increasing the intensity of sampling of working faces, additional infill
drilling, introduction of a grade-control model for short-term planning and
additional external training of key personnel involved in orebody modelling.

During Q1 2026, a new collective bargaining agreement was signed with the
trades unions representing Sasa's unionised employees. The negotiations also
included restructuring the previous underground allowance with a bonus system
for delivering production in excess of budget. Productivity remains a key
focus and, among other changes stemming from last year's business review, Sasa
has redesigned its drill-and-blast patterns, with a significant improvement in
the advance achieved with each blast.

Following the comprehensive business review of Sasa in the second half of
2025, by the end of March 2026 employees representing just over 11% of the
total workforce had agreed to leave the business via a combination of
voluntary mutual agreements, retirements and the expiry of some temporary
contracts.

Operation of the Dry Stack Tailings (DST) Plant was naturally limited in Q1
2026, owing to the impact of winter weather on deposition of the tailings on
the landform. However, volumes improved in March. The DST plant has now
completed a full seasonal, 12-month cycle, during which tailings stored as dry
tailings or underground as paste backfill represent approximately 71% of the
total generated. This compares to CAML's 2026 target of 70% of Sasa's tailings
to be stored using these more environmentally responsible methods.

Sasa production summary

                         Units    Q1 2026  Q1 2025
 Ore mined               t        198,722  196,502
 Plant feed              t        194,938  198,002
 Zinc grade              %        2.58     2.68
 Zinc recovery           %        85.3     86.7
 Lead grade              %        3.54     3.52
 Lead recovery           %        94.5     94.9
 Zinc concentrate        t (dry)  8,477    9,175
 -    grade              %        50.5     50.2
 -    contained zinc     t        4,282    4,603
 Lead concentrate        t (dry)  9,211    9,351
 -    grade              %        70.9     70.7
 -    contained lead     t        6,529    6,608

Sasa's metal-in-concentrate production (details in table above) is subject to
payability factors of approximately 84% for zinc and 95% for lead when
delivered to smelters. Consequently, Q1 2026 payable production was 3,604
tonnes of zinc-in-concentrate and 6,203 tonnes of lead-in-concentrate.

Payable metal-in-concentrate sales for Q1 2026 were 3,672 tonnes of zinc and
5,972 tonnes of lead, in line with payable production. During Q1 2026, Sasa
delivered 94,737 ounces of payable silver to OR Royalties, in accordance with
its streaming agreement.

Exploration activities

During Q1 2026, CAML X, an 80%-owned subsidiary of CAML, completed
preparations for its maiden drilling programmes in Kazakhstan, including
contractor selection, operational planning and the establishment of assay
workflows. Drilling is scheduled to commence at Yuzhnoe in late April, with an
initial seven holes totalling approximately 2,000 metres, targeting a
porphyry-affinity copper system overprinting a volcanogenic package. At Otyar,
drilling is scheduled to commence in late May, with an initial eight holes
totalling 2,000 metres, targeting a structurally controlled polymetallic
(zinc-lead-silver) system.

At Shaindy, geophysical work progressed with an ongoing induced-polarisation
survey aimed at refining drill targets for a potential porphyry-related copper
system with high-grade distal mineralisation.

In parallel, CAML XD, a wholly-owned subsidiary of CAML, advanced its growth
strategy in the Tengiz Basin by signing a term sheet in February 2026 for an
option to acquire up to 100% in a licence prospective for sediment-hosted
copper mineralisation. CAML XD already holds an exploration licence in this
basin, granted in late 2025. CAML XD also strengthened its regional land
position in the Chingiz-Tarbagatay belt, submitting applications for four
exploration blocks in the Egiz-Kyzyl syncline targeting copper and zinc
mineralisation, with additional areas under evaluation.

During March, Aberdeen Minerals, in which CAML has a 32.6% shareholding,
commenced the Phase 3 drilling programme at its Arthrath base metals project
in northeast Scotland testing the southwestern zone. This new target area was
indicated by the 2024-25 exploration programmes as having strong potential for
high-grade massive sulphides. Up to six holes are due to be drilled, for a
total of up to 2,600 metres, with results expected in Q3 2026.

All dollar amounts in this announcement are US dollars unless otherwise
stated.

For further information contact:

 Central Asia Metals                             Tel: +44 (0) 20 7898 9001
 Gavin Ferrar
 CEO
 Louise Wrathall
 CFO
 Richard Morgan                                  richard.morgan@centralasiametals.com
 Investor Relations Manager
 Peel Hunt (Nominated Adviser and joint broker)  Tel: +44 (0) 20 7418 8900
 Ross Allister
 David McKeown
 Emily Bhasin
 BMO Capital Markets (joint broker)              Tel: +44 (0) 20 7236 1010
 Thomas Rider
 Pascal Lussier Duquette
 BlytheRay (PR advisers)                         Tel: +44 (0) 20 7138 3204
 Megan Ray                                       CentralAsiaMetals@BlytheRay.com
 Rachael Brooks

Rachael Brooks

 

Note to editors:

Central Asia Metals, an AIM-quoted UK company based in London, owns 100% of
the Kounrad SX-EW copper operation 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 32.6% 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

 

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  UPDQELFFQZLEBBB



            Copyright 2019 Regulatory News Service, all rights reserved