TIDMCAML
RNS Number : 2841J
Central Asia Metals PLC
09 April 2020
9 April 2020
CENTRAL ASIA METALS PLC
('CAML' or the 'Company')
Q1 2020 Operations Update
Central Asia Metals plc (AIM: CAML) today provides a Q1 2020
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').
Q1 2020 operational highlights
- Production and sales unaffected by COVID-19 pandemic
- No lost time injuries ('LTIs') at either operation
- Kounrad copper production, 3,201 tonnes
- Sasa zinc in concentrate production, 6,127 tonnes
- Sasa lead in concentrate production, 7,607 tonnes
Outlook
- Production currently on track to meet full year 2020 guidance for copper, zinc and lead
o copper, 12,500 - 13,500 tonnes
o zinc, 23,000 - 25,000 tonnes
o lead, 30,000 - 32,000 tonnes
- Global health, metal price and economic uncertainty remains regarding COVID-19 pandemic
CAML production summary
Metal production (tonnes) Q1 2020 Q1 2019
Copper 3,201 2,952
-------- ---------
Zinc 6,127 5,639
-------- ---------
Lead 7,607 7,212
-------- ---------
Nigel Robinson, Chief Executive Officer, commented:
"We are today reporting strong Q1 2020 production numbers for
all three of the base metals that we produce, with increases
quarter on quarter for copper, zinc and lead. We experienced no
disruptions to either the production or sales of our metal products
during Q1 2020.
"While we retain our 2020 production guidance, we remain
cautious for the Q2 2020 outlook in particular as cases of COVID-19
in both Kazakhstan and North Macedonia are increasing, and
government measures are understandably escalating. That said,
having made the difficult recent decision not to recommend a 2019
final dividend, we believe we have ensured the continued financial
strength of our business while the pandemic continues.
"The welfare of our employees and contractors is our top
priority."
Overview - COVID-19
During Q1 2020, both the Sasa mine in North Macedonia and the
Kounrad facility in Kazakhstan continued to operate, with no
disruptions to production or sales during the period due to
COVID-19. No CAML employees have to date been diagnosed with
COVID-19 at either operation and the Company has implemented
various health measures on its sites, including issuing COVID-19
related personal protective equipment ('PPE'), reinforcing
government guidance and hygiene measures, and limiting visits to
site.
The Government of Kazakhstan has declared a State of Emergency
and has implemented several measures intended to curtail the spread
of the pandemic, such as a total lock-down of the cities of
Nur-Sultan and Almaty as well as some other larger cities. The
borders have been closed for the movement of people but not goods.
Currently, 704 people have tested positive for COVID-19 in
Kazakhstan, with the numbers rising daily.
Similarly, the Government of North Macedonia has declared a
State of Emergency, implementing measures such as school closures,
night-time curfews and closure of borders to the movement of people
and in some cases the movement of trade vehicles. Sasa has to date
been able to continue truck movements across the borders and has
particular arrangements in place regarding the curfew to enable its
night shift to continue to operate. Currently, 599 people have
tested positive for COVID-19 in North Macedonia, with the numbers
rising daily.
Kounrad
Kounrad Q1 2020 copper production was 3,201 tonnes. Total
Kounrad copper production since operations commenced in 2012 is now
99,446 tonnes, and the Company expects to reach the milestone of
100,000 tonnes of copper produced from Kounrad in Q2 2020.
Total copper recovered from the Western Dumps in Q1 2020 was
2,396 tonnes, equating to approximately 75% of the amount
plated.
Copper sales during Q1 2020 were 3,191 tonnes.
Sasa
The new tertiary crusher which was installed in December 2019
was fully commissioned in January 2020. It is performing in line
with expectations and consequently the Q1 2020 throughput rate of
the Sasa processing plant was approximately 845,000 tonnes per
year, up from approximately 820,000 tonnes in 2019.
Having made the Q4 2019 decision to begin a fleet replacement
programme of underground equipment, the Sasa team placed orders and
the first of six new pieces of equipment, a new Epiroc Boomer drill
rig, has arrived on site and is now operational.
Despite travel restrictions, technical work continues for the
Life of Mine study that is appraising the change in mining method
from the current sub-level caving method to cut and fill stoping.
The study is currently expected to be completed during H2 2020.
Production
In Q1 2020, mined and processed ore were 207,788 tonnes and
210,664 tonnes respectively. The average head grades for the period
were 3.37% zinc and 3.82% lead. Q1 2020 metallurgical recoveries
were 86.4% for zinc and 94.5% for lead.
Sasa produces a zinc concentrate and a separate lead
concentrate. In Q1 2020, 12,315 tonnes of concentrate containing
49.8% zinc and 10,560 tonnes of concentrate containing 72.0% lead
were produced.
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, Q1 2020 payable production
was 5,142 tonnes of zinc and 7,227 tonnes of lead. Given that
deliveries from Sasa to the smelters occur on a regular basis,
payable base metal in concentrate sales for the quarter were
similar at 5,182 tonnes of zinc and 7,296 tonnes of lead.
During Q1 2020, Sasa sold 91,598 ounces of payable silver to
Osisko Gold Royalties, in accordance with its streaming
agreement.
Units Q1 2020 Q1 2019
Ore mined t 207,788 197,836
--------- -------- --------
Plant feed t 210,664 199,489
--------- -------- --------
Zinc grade % 3.37 3.26
--------- -------- --------
Zinc recovery % 86.4 86.8
--------- -------- --------
Lead grade % 3.82 3.84
--------- -------- --------
Lead recovery % 94.5 94.0
--------- -------- --------
Zinc concentrate t (dry) 12,315 11,447
--------- -------- --------
* Grade % 49.8 49.3
--------- -------- --------
* Contained zinc t 6,127 5,639
--------- -------- --------
Lead concentrate t (dry) 10,560 9,870
--------- -------- --------
* Grade % 72.0 73.1
--------- -------- --------
* Contained lead t 7,607 7,212
--------- -------- --------
For further information contact:
Central Asia Metals Tel: +44 (0) 20 7898 9001
Nigel Robinson, CEO
Gavin Ferrar, CFO
Louise Wrathall, Director of Corporate louise.wrathall@centralasiametals.com
Relations
Peel Hunt (Nominated Advisor and Tel: +44 (0) 20 7418 8900
Joint Broker)
Ross Allister
David McKeown
BMO Capital Markets (Joint Broker) Tel: +44 (0) 20 7236 1010
Thomas Rider
Neil Elliot
Blytheweigh (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 https://twitter.com/CamlMetals
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END
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