TIDMCAML
RNS Number : 1595M
Central Asia Metals PLC
10 January 2023
10 January 2023
CENTRAL ASIA METALS PLC
('CAML' or the 'Company')
2022 Operations Update
Central Asia Metals plc (AIM: CAML) today provides a Q4 and full
year 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').
2022 summary
- Zero lost time injuries ('LTIs') at Kounrad and two LTIs at Sasa
- Record copper production at Kounrad, above guidance range
o 14,254 tonnes of copper produced
- Zinc and lead production at Sasa within guidance range
o Zinc in concentrate production of 21,473 tonnes
o Lead in concentrate production of 27,354 tonnes
- Cash in the bank on 31 December 2022 of $60.6 million
- Debt free following the full repayment of the corporate debt facility in August 2022
2023 production guidance
- Copper, 13,000 to 14,000 tonnes
- Zinc in concentrate, 19,000 to 21,000 tonnes
- Lead in concentrate, 27,000 to 29,000 tonnes
CAML production summary
Metal production (tonnes) Q4 2022 2022 2021
Copper 3,569 14,254 14,041
-------- ------- -------
Zinc 5,262 21,473 22,167
-------- ------- -------
Lead 6,628 27,354 27,202
-------- ------- -------
Nigel Robinson, Chief Executive Officer, commented:
"I am delighted to report strong production from both of our
operations during 2022.
"At Kounrad, we had a record year and exceeded our guidance,
producing over 14,000 tonnes of copper cathode into a broadly
strong pricing environment. At Sasa, I am proud of our team's hard
work and efforts throughout the year to ensure that we met our
guidance and began progressing the Cut and Fill Project. Two LTIs
at Sasa were disappointing, and we have adapted training to
mitigate against further similar incidents.
"As part of the Cut and Fill Project, construction of the paste
backfill plant has begun with good progress and therefore remains
on schedule for H1 2023. Additionally, work on the Central Decline
continues to progress towards the Svinja Reka ore body, with 1,051
metres being developed during the year bringing the total advanced
to 1,554 metres.
"At Kounrad, earthworks undertaken by our own team have begun
for the construction of the Solar Power Project, which is on
schedule for completion during H2 2023.
"We enter 2023 in a debt-free position and look forward to
delivering another year of strong base metal production and
beginning the transition to the cut and fill mining method at Sasa.
Our 2022 annual results are scheduled to be released on 29 March
2023, when our final dividend for 2022 will also be announced."
Health and Safety
There were no LTIs at Kounrad and one at Sasa during Q4
2022.
During 2022, there were zero total recordable injuries ('TRIs')
at Kounrad and, to 31 December 2022, there have been 1,689 days
since the last LTI at Kounrad. At Sasa in 2022, there were two
LTIs, two medical treatment injuries ('MTIs') and one restricted
work case ('RWC') during the year, equating to five TRIs for the
Company.
Kounrad
Kounrad delivered Q4 2022 copper production of 3,569 tonnes,
bringing output for 2022 to 14,254 tonnes, a production record for
CAML.
Copper sales during Q4 2022 were 3,843 tonnes, bringing the
total for 2022 to 14,342 tonnes.
Solar Power Project Update
Earthworks for the Solar Power Project began in Q4 2022 at a
10-hectare site close to the SX-EW plant. Project construction
being undertaken by Kounrad's in-house engineering team is expected
to be complete in the latter part of H2 2023.
Sasa
In Q4 2022, mined and processed ore were 203,483 tonnes and
202,175 tonnes respectively, bringing the total for 2022 to 806,069
tonnes of ore mined and 806,653 tonnes of ore processed. The
average head grades for the quarter were 3.11% zinc and 3.54% lead,
and for the year were 3.15% and 3.63% respectively. The average
2022 metallurgical recoveries were 84.6% for zinc and 93.4% for
lead.
Sasa produces a zinc concentrate and a separate lead
concentrate. In Q4 2022, 10,500 tonnes of concentrate containing
50.1% zinc and 9,268 tonnes of concentrate containing 71.5% lead
were produced. Total production for 2022 was 42,824 tonnes of zinc
concentrate at an average grade of 50.1% and 38,439 tonnes of lead
concentrate at an average grade of 71.2%. 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, Q4 2022 payable production of zinc was
4,423 tonnes and of lead was 6,297 tonnes, bringing total 2022
payable production to 18,048 tonnes of zinc and 25,987 tonnes of
lead. Payable base metal in concentrate sales from Sasa in Q4 2022
were 4,323 tonnes of zinc and 6,219 tonnes of lead and for 2022
were 17,862 tonnes of zinc and 25,689 tonnes of lead.
During Q4 2022, Sasa sold 79,120 ounces of payable silver to
Osisko Gold Royalties and during 2022 sold 316,757 ounces, in
accordance with its streaming agreement.
Units Q4 2022 2022 2021
Ore mined t 203,483 806,069 818,609
--------- -------- --------- --------
Plant feed t 202,175 80 6,653 830,709
--------- -------- --------- --------
Zinc grade % 3.11 3. 15 3.14
--------- -------- --------- --------
Zinc recovery % 83.6 84 .6 84.9
--------- -------- --------- --------
Lead grade % 3.54 3. 63 3.52
--------- -------- --------- --------
Lead recovery % 92.6 93.4 93.1
--------- -------- --------- --------
Zinc concentrate t (dry) 10,500 42,824 44,383
--------- -------- --------- --------
* Grade % 50.1 50.1 49.9
--------- -------- --------- --------
* Contained zinc t 5,263 21,473 22,167
--------- -------- --------- --------
Lead concentrate t (dry) 9,268 38,439 37,893
--------- -------- --------- --------
* Grade % 71.5 71.2 71.8
--------- -------- --------- --------
* Contained lead t 6,628 27,354 27,202
--------- -------- --------- --------
Cut and Fill Project update
The Cut and Fill Project, which comprises the construction of a
paste backfill plant and associated reticulation, a dry stack
tailings plant and associated landform, and development of a new
decline, will ensure maximum extraction of Sasa's resources, in the
safest way, with minimal water usage and improved tailings
management.
Development of the Central Decline continues to progress well,
with 1,051 metres developed during 2022, and 1,554 metres in total
and is on schedule to complete phase 1 to connect surface with the
910 production level by the end of H1 2023. Construction of the
Paste Backfill Plant on surface and the associated underground
infrastructure remains on schedule to be completed in H1 2023.
Additionally, orders have been placed for key items required for
the Dry Stack Tailings plant, which will be constructed during H2
2023.
2023 guidance
CAML targets 2023 Kounrad copper production of between 13,000
and 14,000 tonnes of cathode, which is effectively a 500-tonne
increase on CAML's 2022 initial copper production guidance.
At Sasa, 2023 will be a year of transition from the current
sub-level caving mining method to cut and fill stoping. Therefore,
CAML maintains its ore mined guidance year on year of 790,000 to
810,000 tonnes. The Company expects some adjustment in the split of
its metal products this year, and therefore provides production
guidance of 19,000 to 21,000 tonnes of zinc in concentrate and
27,000 to 29,000 tonnes of lead in concentrate.
Given the ongoing Sasa Cut and Fill Project, CAML expects Group
2023 capital expenditure of between $28 million and $30 million, of
which between $11 million and $13 million is expected to be
committed to sustaining capex. The project capital expenditure also
includes construction of the Kounrad Solar Power Project which is
expected to cost between $4 million and $5 million.
Cash
As of 31 December 2022, CAML had cash in the bank of $60.6
million. The corporate debt facility was fully repaid in August
2022.
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 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
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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