H1 2022 Operations Update
12 July 2022
CENTRAL ASIA METALS PLC
('CAML' or the 'Company')
H1 2022 Operations Update
Central Asia Metals plc (AIM: CAML) today provides a H1 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').
H1 2022 operational summary
- Zero lost time injuries ('LTI') at Kounrad
- One LTI at Sasa
- Kounrad copper production, 6,617 tonnes
- Sasa zinc in concentrate production, 10,465 tonnes
- Sasa lead in concentrate production, 13,827 tonnes
Group cash and debt position
- Cash in the bank on 30 June 2022, $57.7 million
- Gross debt (inclusive of $4.5 million overdraft) on 30 June 2022, $12.1 million
- H1 2022 Group corporate debt repayments of $16.0 million
Outlook
- On track to achieve 2022 full year guidance
o Copper, towards the top end of the 12,500 to 13,500 tonne guidance range
o Zinc in concentrate, 20,000 to 22,000 tonnes
o Lead in concentrate, 27,000 to 29,000 tonnes
CAML production summary
|
Metal production (tonnes) |
Q2 2022 |
Q1 2022 |
H1 2022 |
H1 2021 |
|
Copper |
3 ,593 |
3,024 |
6 ,617 |
6,214 |
|
Zinc |
5 ,225 |
5,240 |
1 0,465 |
11,292 |
|
Lead |
7 ,091 |
6,736 |
1 3,827 |
13,807 |
Nigel Robinson, Chief Executive Officer, commented:
"We are pleased to report a safe quarter at CAML, with no LTIs recorded at either Kounrad or Sasa. Production was strong for all three of our base metals. We are on track to achieve our 2022 guidance for copper, zinc and lead and we expect to be towards the top end of our copper target range.
"Our recent permitting successes in North Macedonia mean that we are on course to complete construction and commissioning of our paste backfill plant, which is part of the Cut and Fill Project, during H1 2023 as previously advised.
"There have clearly been global inflationary pressures during the last six months, but we have also seen strong metal prices during the last six months and therefore look forward to releasing our H1 2022 financial results on 14 September 2022, when we will also announce our interim dividend. We remain on track to repay our corporate debt facility in full in August 2022."
Health and Safety
There were no LTIs at Kounrad during the reported period. One LTI was recorded at Sasa during Q1 2022, with none in Q2 2022. As of end of June 2022, Kounrad had achieved 1,505 LTI-free days and Sasa had achieved 146 LTI-free days.
Kounrad
Kounrad Q2 2022 copper production of 3,593 tonnes brings output for the first six months of 2022 to 6,617 tonnes. Copper sales during H1 2022 were 6,406 tonnes.
Sasa
Production
In Q2 2022, mined and processed ore were 204,707 tonnes and 206,405 tonnes respectively, bringing the H1 2022 total to 402,208 tonnes of ore mined and 404,391 tonnes of ore processed. The average head grades for the Q2 2022 period were 3.00% zinc and 3.67% lead, and for H1 2022 were on average 3.07% and 3.66% respectively. The average H1 2022 metallurgical recoveries were 84.3% for zinc and 93.5% for lead.
Sasa produces a zinc concentrate and a separate lead concentrate. In Q2 2022, 10,440 tonnes of concentrate containing 50.0% zinc and 10,019 tonnes of concentrate containing 70.8% lead were produced. Total H1 2022 production was 20,959 tonnes of zinc concentrate at an average grade of 49.9% and 19,507 tonnes of lead concentrate at an average grade of 70.9%.
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 2022 payable production of zinc was 4,390 tonnes and of lead was 6,737 tonnes, bringing total payable production for H1 2022 to 8,788 tonnes of zinc and 13,136 tonnes of lead.
Given that deliveries from Sasa to the smelters occur on a regular basis, payable base metal in concentrate sales for the six-month period were similar to our production levels at 8,761 tonnes of zinc and 12,977 tonnes of lead.
During H1 2022, Sasa delivered 164,482 ounces of payable silver to Osisko Gold Royalties, in accordance with its streaming agreement.
|
|
Units |
Q2 2022 |
Q1 2022 |
H1 2022 |
H1 2021 |
|
Ore mined |
t |
204,707 |
197,501 |
402,208 |
413,987 |
|
Plant feed |
t |
206,405 |
197,986 |
404,391 |
423,863 |
|
Zinc grade |
% |
3.00 |
3.14 |
3.07 |
3.14 |
|
Zinc recovery |
% |
84.2 |
84.3 |
84.3 |
84.9 |
|
Lead grade |
% |
3.67 |
3.65 |
3.66 |
3.50 |
|
Lead recovery |
% |
93.7 |
93.3 |
93.5 |
93.2 |
|
Zinc concentrate |
t (dry) |
10,440 |
10,519 |
20,959 |
22,571 |
|
- Grade |
% |
50.0 |
49.8 |
49.9 |
50.0 |
|
- Contained zinc |
t |
5,225 |
5,240 |
10,465 |
11,292 |
|
Lead concentrate |
t (dry) |
10,019 |
9,488 |
19,507 |
19,119 |
|
- Grade |
% |
70.8 |
71.0 |
70.9 |
72.2 |
|
- Contained lead |
t |
7,091 |
6,736 |
13,827 |
13,807 |
Cut and Fill Project
During H1 2022, significant permitting work was undertaken in preparation for the construction phase of the Cut and Fill Project. The project Environment and Social Impact Assessment ('ESIA') was submitted to the relevant authorities and the subsequent Public Consultation hearing took place in the community close to the Sasa mine. This meeting was successful and the period for public feedback has now closed.
The Cut and Fill Project is therefore on schedule with the timelines previously advised, and the team continues to expect completion of the paste backfill plant construction and commissioning in H1 2023 and the dry stack tailings component during H2 2023.
Development of the Central Decline continues to progress well with 453 metres developed during H1 2022, and 956 metres in total.
Group cash and debt position
As of 30 June 2022, CAML had cash in the bank of $57.7 million and gross debt of $12.1 million. The June 2022 corporate debt repayment of $3.2 million was collected by the lenders in July instead, and is therefore not reflected in the 30 June 2022 cash and debt balances. Gross debt comprises $7.6 million of corporate debt through Traxys Europe S.A. and $4.5 million of North Macedonian drawn overdraft facilities with Sparkasse Bank (formerly Ohridska Banka).
For further information contact:
|
Central Asia Metals |
Tel: +44 (0) 20 7898 9001 |
|
Nigel Robinson, CEO |
|
|
Gavin Ferrar, CFO |
|
|
Louise Wrathall, Director of Corporate Development |
louise.wrathall@centralasiametals.com |
|
|
|
|
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
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.
Latest directors dealings
- 9 hours ago ASOS
- 9 hours ago MJ Gleeson
- 9 hours ago Rolls-Royce Holdings
- 10 hours ago Crest Nicholson Holdings
- 10 hours ago Naked Wines