RNS Number : 2440C
Central Asia Metals PLC
10 October 2022
 

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10 October 2022

 

CENTRAL ASIA METALS PLC

('CAML' or the 'Company')

Q3 2022 Operations Update

Central Asia Metals plc (AIM: CAML) today provides a Q3 2022 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').

Summary

·    No lost time injuries ('LTIs') at either Kounrad or Sasa during Q3 2022

·    Kounrad

Q3 2022, 4,067 tonnes of copper produced

First nine months of 2022, 10,685 tonnes of copper produced

·    Sasa

Q3 2022 zinc in concentrate, 5,746 tonnes produced

Q3 2022 lead in concentrate, 6,899 tonnes produced

First nine months of 2022 zinc in concentrate, 16,211 tonnes produced

First nine months of 2022 lead in concentrate, 20,726 tonnes produced

 

Outlook

·    On course to achieve increased 2022 guidance for Kounrad's copper production (13,500 to 14,000 tonnes)

·    On course to meet Sasa 2022 production guidance

Zinc in concentrate, 20,000-22,000 tonnes

Lead in concentrate, 27,000-29,000 tonnes

 

CAML production summary

Metal production (tonnes)

Q3 2022

Q2 2022

Q1 2022

9m 2022

9m 2021

Copper

4,067

3,593

3,024

10,685

10,360

Zinc

5,746

5,225

5,240

16,211

17,033

Lead

6,899

7,091

6,736

20,726

20,734

 

Nigel Robinson, Chief Executive Officer, commented:

"I am pleased to report safe and strong production from both of our operations during Q3 2022, with zero LTIs. At Kounrad, we announced increased 2022 production guidance with our H1 2022 results, and we are on track to deliver this and meet our production targets at Sasa.

"Since recently announcing that we had received approval of the Cut and Fill Project Environmental and Social Impact Assessment ('ESIA'), we have now begun construction of the paste backfill plant. Construction of this part of Sasa's Cut and Fill Project therefore remains on schedule to be completed in H1 2023.

"In August, we made our final repayment of the $187 million debt which we secured to acquire Sasa less than five years ago. These repayments have been made while we remained consistently among the sector leading dividend payers, delivered value for all our stakeholders, and invested in our operations."

Health and Safety

There were no LTIs at either Kounrad or Sasa during Q3 2022.

Kounrad

Production and sales update

Kounrad Q3 2022 copper production of 4,067 tonnes brings output for the first nine months of 2022 to 10,685 tonnes. Copper sales during Q3 2022 were 4,093 tonnes, bringing the total for the first nine months of the year to 10,499 tonnes.

Sasa

Production and sales update

In Q3 2022, mined and processed ore were 200,379 tonnes and 200,087 tonnes respectively, bringing the total for the first nine months of 2022 to 602,587 tonnes of ore mined and 604,478 tonnes of ore processed. The average head grades for the quarter were 3.34% zinc and 3.67% lead, and for the first nine months of the year were 3.16% and 3.66% respectively.

Sasa produces a zinc concentrate and a separate lead concentrate. In Q3 2022, 11,364 tonnes of concentrate containing 50.6% zinc and 9,665 tonnes of concentrate containing 71.4% lead were produced. Total production for the first nine months of the year was 32,323 tonnes of zinc concentrate at an average grade of 50.2% and 29,172 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, Q3 2022 payable production of zinc was 4,837 tonnes and of lead was 6,554 tonnes, bringing total payable production for the nine-month period to 13,625 tonnes of zinc and 19,690 tonnes of lead.

Given that deliveries from Sasa to the smelters occur on a regular basis, payable base metal in concentrate sales for the nine-month period were similar at 13,539 tonnes of zinc and 19,470 tonnes of lead.

During the first nine months of 2022, Sasa sold 237,636 ounces of payable silver to Osisko Gold Royalties, in accordance with its streaming agreement. 


Units

Q3 2022

9m 2022

9m 2021

Ore mined

t

200,379

602,587

614,807

Plant feed

t

200,087

604,478

626,906

Zinc grade

%

3.34

3.16

3.19

Zinc recovery

%

85.9

84.9

85.1

Lead grade

%

3.67

3.66

3.54

Lead recovery

%

94.0

93.7

93.4

Zinc concentrate

t (dry)

11,364

32,323

34,003

-      Grade

%

50.6

50.2

50.1

-      Contained zinc

t

5,746

16,211

17,033

Lead concentrate

t (dry)

9,665

29,172

28,856

-      Grade

%

71.4

71.0

71.9

-      Contained lead

t

6,899

20,726

22,300

 

Cut and Fill Project update

The permits required to begin construction of the paste backfill plant have been received and, in September, initial earthworks began. Construction of the paste backfill plant is on schedule to be completed in H1 2023, with the dry stack tailings component scheduled for completion during H2 2023. Development of the central decline continues to progress well, with 711 metres developed during the first nine months of 2022, and 1,218 metres in total.

 

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 and follow CAML on Twitter at @CamlMetals and on LinkedIn at Central Asia Metals Plc.

 

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