REG - Central Asia Metals - H1 2024 Operations Update

Central Asia MetalsAnnouncement

11/07/2024 07:00

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RNS Number : 9390V  Central Asia Metals PLC  11 July 2024

 

11 July 2024

 

CENTRAL ASIA METALS PLC

('CAML' or the 'Company')

H1 2024 Operations Update

Central Asia Metals plc (AIM: CAML) provides its H1 2024 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 2024 operational summary

-      Zero lost time injuries ('LTIs') at Kounrad

-      One LTI at Sasa

-      Kounrad copper production of 6,608 tonnes

-      Sasa zinc-in-concentrate production of 9,014 tonnes

-      Sasa lead-in-concentrate production of 12,872 tonnes

 

Group cash

 

-      Cash in the bank at 30 June 2024 of $56.4 million

 

Outlook

 

-      Kounrad on track to achieve 2024 full-year guidance for copper
production (13,000 to 14,000 tonnes)

-      Sasa expected to achieve production towards the lower end of 2024
guidance:

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 2024  Q1 2024  H1 2024  H1 2023
 Copper                     3,488    3,120    6,608    6,716
 Zinc                       4,272    4,741    9,014    9,764
 Lead                       6,343    6,529    12,872   13,734

Nigel Robinson, Chief Executive Officer, commented:

"Kounrad performed well during Q2 2024, bringing H1 production into line with
prior years, after facing some difficult winter weather conditions in Q1 of
this year.

"Production at Sasa in both Q2 and H1 2024 has been impacted by a modest
reduction in mined tonnage, owing principally to the short-term challenges
inherent in the transition to a new mining method. This transition, which
continued during the quarter, will be of material benefit in the longer-term,
by sustaining the life of both the underground mine and its associated
tailings storage facilities.

"We look forward to an improvement in mined tonnage at Sasa during H2 2024, as
the mining transition progresses. However, taking into account the production
levels achieved during H1, we expect full-year production at Sasa to be
towards the lower end of our previously announced guidance.

"Our H1 2024 financial results will be released on 10 September 2024, when we
will also announce our interim dividend."

Health and Safety

Sasa recorded one LTI during Q2 2024, towards the end of the period.

Kounrad had no LTIs during H1 2024, and at 30 June 2024 had achieved 2,236
days LTI free.

Kounrad

Production and sales update

Kounrad Q2 2024 copper production of 3,488 tonnes brings output for the first
six months of 2024 to 6,608 tonnes. Copper sales during H1 2024 were 6,415
tonnes.

Sasa

Production and sales update

In Q2 2024, 181,525 tonnes of ore were mined and 183,996 tonnes were
processed, bringing the H1 2024 totals to 365,652 tonnes mined and 368,075
tonnes processed. The average head grades for the Q2 2024 period were 2.73%
zinc and 3.66% lead, and for H1 2024 averaged 2.86% and 3.70% respectively.
The average H1 2024 metallurgical recoveries were 85.5% for zinc and 94.4% for
lead.

Sasa produces a zinc concentrate and a separate lead concentrate. In Q2 2024,
8,419 tonnes of concentrate containing 50.8% zinc, and 9,009 tonnes of
concentrate containing 70.4% lead were produced.  This brings total
production for H1 2024 to 17,913 tonnes of zinc concentrate at a grade of
50.3% and 18,186 tonnes of lead concentrate at a grade of 70.8%.

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 2024 payable production was 3,599 tonnes
of zinc and 6,026 tonnes of lead, bringing total payable production for H1
2024 to 7,581 tonnes of zinc and 12,228 tonnes of lead.

Payable base metal-in-concentrate sales for H1 2024 were 7,674 tonnes of zinc
and 12,535 tonnes of lead, broadly in line with production.

During H1 2024, Sasa sold 174,916 ounces of payable silver to Osisko Gold
Royalties, in accordance with its streaming agreement.

                             Units    Q2 2024  Q1 2024  H1 2024  H1 2023
 Ore mined                   t        181,525  184,127  365,652  396,234
 Plant feed                  t        183,996  184,079  368,075  396,673
 Zinc grade                  %        2.73     3.00     2.86     2.90
 Zinc recovery               %        85.0     85.9     85.5     84.9
 Lead grade                  %        3.66     3.75     3.70     3.72
 Lead recovery               %        94.2     94.7     94.4     93.1
 Zinc concentrate            t (dry)  8,419    9,494    17,913   19,257
 -      Grade                %        50.8     49.9     50.3     50.7
 -      Contained zinc       t        4,272    4,741    9,014    9,764
 Lead concentrate            t (dry)  9,009    9,177    18,186   19,302
 -      Grade                %        70.4     71.1     70.8     71.2
 -      Contained lead       t        6,343    6,529    12,872   13,734

 

Capital projects - the transition to paste-fill mining

During H1 2024, the Paste Backfill Plant operated consistently, with
approximately 130,000 tonnes of paste placed in the voids between the 990 and
910 metre levels and in the cut-and-fill production stopes on the 800 metre
level. Some of these previously mined voids proved of greater volume than
anticipated, requiring more paste fill, which in turn restricted initial
stoping operations under the new mining method. However, this void-filling
provides the necessary ground stability for current and future mining, whilst
increasing the volume of tailings stored underground and thus further reducing
the quantity that needs to be stored on surface. The first long-hole stopes
have also been put into production, and additional stopes will follow during
H2 2024 and in 2025.

Construction of the Dry Stack Tailings Plant remains on track, with initial
placement of filter cake on the engineered landform scheduled for H2 2024.

A total of 3,183 metres of the Central Decline have now been developed,
connecting with the 800 metre level during Q2 2024. Completion and connection
with the 750 metre level is planned for Q4 2024.

Group cash and debt position

At 30 June 2024, CAML had cash in the bank of $56.4 million and no significant
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
 Richard Morgan                                  richard.morgan@centralasiametals.com
 Investor Relations Manager

 Peel Hunt (Nominated Advisor 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 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 Company also owns an 80% interest in
CAML Exploration, a subsidiary that was formed to progress early exploration
opportunities in Kazakhstan, and a 28.7% 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

 

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