TIDMCAML
RNS Number : 5319E
Central Asia Metals PLC
08 July 2021
8 July 2021
CENTRAL ASIA METALS PLC
('CAML' or the 'Company')
H1 2021 Operations Update
Central Asia Metals plc (AIM: CAML) today provides a H1 2021
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 2021 operational highlights
-- River Remediation Project completed at Sasa
-- No lost time injuries ('LTIs') at Kounrad
-- Three LTIs at Sasa
-- Kounrad copper production, 6,214 tonnes
-- Sasa zinc in concentrate production, 11,292 tonnes
-- Sasa lead in concentrate production, 13,807 tonnes
Group cash and debt position
-- Cash in the bank on 30 June 2021, $54.4 million
-- Gross debt (inclusive of $8.7 million overdraft) on 30 June 2021, $60.9 million
o H1 2021 Group corporate debt repayments of $19.2 million
CAML Board changes
-- Deputy Chairman, Nigel Hurst-Brown, to retire from the CAML Board as of 31 July 2021
CAML production summary
Metal production Q2 2021 Q1 2021 H1 2021 H1 2020
(tonnes)
Copper 3,334 2,880 6,214 6,607
-------- -------- -------- --------
Zinc 5,549 5,742 11,292 12,203
-------- -------- -------- --------
Lead 6,791 7,016 13,807 15,140
-------- -------- -------- --------
Nigel Robinson, Chief Executive Officer, commented:
"Completion of the River Remediation Project to the satisfaction
of our local and national stakeholders has been the highlight of H1
2021 and we believe this draws a line under the tailings storage
facility 4 ('TSF4') incident, albeit with continued monitoring
programmes remaining in place.
"The three LTIs at Sasa were of course a disappointment and
lessons have been learnt from each of the incidents.
"Our copper production during the first half of the year at
Kounrad was solid and we are firmly on track to meet our full year
guidance. At Sasa, the Q1 2021 mill shutdown, coupled with
additional ground support requirements, has resulted in slightly
lower H1 2021 zinc and lead production than the prior comparative
period. We will provide further updates with regards to our 2021
production guidance, if required, later in the year.
"During the period, we have seen strong metal prices and
therefore look forward to releasing our H1 2021 financial results
on 15 September 2021, when we will also announce our interim
dividend."
Nick Clarke, Non-Executive Chairman, commented:
"Nigel Hurst-Brown was our first Chairman, guiding CAML through
its listing on the AIM market of the London Stock Exchange in 2010,
until my transition to Chairman in 2016. He has been a diligent
member of the Board for 15 years and I want to thank him for his
commitment to our business and his wise counsel, as well as wishing
him all the best for the future."
Health and Safety
There were no LTIs at Kounrad during the reported period. Three
LTIs were recorded at Sasa during H1 2021, with two in Q2 2021.
COVID-19 remains a risk to the welfare of CAML employees and
contractors and there have been cases of the virus at both Sasa and
Kounrad during the reported period. However, both sites currently
have zero COVID-19 cases.
Kounrad
Kounrad Q2 2021 copper production of 3,334 tonnes brings output
for the first six months of 2021 to 6,214 tonnes. Copper sales
during H1 2021 were 6,241 tonnes.
Sasa
River Remediation Project
During Q2 2021, the River Remediation Project was completed.
Phase 1 of the project, comprising removal of approximately 95% of
the tailings from the riverbed, was completed during Q4 2020. Phase
2 involved extraction of as much as possible of the remaining
tailings as well as removal of the physical silt traps from the
river, and the planting of 3,600 trees, 350 shrubs and 320
kilogrammes of wildflower seed and grasses. The monitoring of water
quality and biodiversity will be ongoing.
Production
In Q2 2021, mined and processed ore were 206,283 tonnes and
213,450 tonnes respectively, bringing the H1 2021 total to 413,987
tonnes of ore mined and 423,863 tonnes of ore processed. The
average head grades for the Q2 2021 period were 3.05% zinc and
3.42% lead, and for H1 2021 were on average 3.14% and 3.50%
respectively. The average H1 2021 metallurgical recoveries were
84.9% for zinc and 93.2% for lead.
Additional localised ground support was required during the
period, resulting in more production from the stopes as opposed to
from development. The latter typically produces zinc and lead ore
of elevated grades due to reduced dilution, and hence head grades
were lower in H1 2021.
Sasa produces a zinc concentrate and a separate lead
concentrate. In Q2 2021, 11,049 tonnes of concentrate containing
50.2% zinc and 9,389 tonnes of concentrate containing 72.3% lead
were produced. Total H1 2021 production was 22,571 tonnes of zinc
concentrate at an average grade of 50.0% and 19,119 tonnes of lead
concentrate at an average grade of 72.2%.
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, Q2 2021 payable production
of zinc was 4,665 tonnes and of lead was 6,452 tonnes, bringing
total payable production for H1 2021 to 9,486 tonnes of zinc and
13,117 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 at 9,419 tonnes of zinc and 13,160
tonnes of lead.
During H1 2021, Sasa sold 151,009 ounces of payable silver to
Osisko Gold Royalties, in accordance with its streaming
agreement.
The Company expects that 2021 zinc and lead production at Sasa
could be towards the lower end of the guidance range, which is
between 23,000 tonnes and 25,000 tonnes for zinc and between 30,000
tonnes and 32,000 tonnes for lead.
Units Q 2 2021 Q 1 2021 H 1 2021 H 1 2020
Ore mined t 206,283 207,704 413,987 4 16,055
--------- --------- --------- --------- ---------
Plant feed t 213,450 210,413 423,863 4 19,856
--------- --------- --------- --------- ---------
Zinc grade % 3.05 3.23 3.14 3 .37
--------- --------- --------- --------- ---------
Zinc recovery % 85.2 84.5 84.9 8 6.3
--------- --------- --------- --------- ---------
Lead grade % 3.42 3.57 3.50 3 .82
--------- --------- --------- --------- ---------
Lead recovery % 92.9 93.5 93.2 9 4.3
--------- --------- --------- --------- ---------
Zinc concentrate t (dry) 11,049 11,521 22,571 2 4,510
--------- --------- --------- --------- ---------
* Grade % 50.2 49.8 50.0 4 9.8
--------- --------- --------- --------- ---------
* Contained zinc t 5,549 5,742 11,292 1 2,203
--------- --------- --------- --------- ---------
Lead concentrate t (dry) 9,389 9,730 19,119 2 1,035
--------- --------- --------- --------- ---------
* Grade % 72.3 72.1 72.2 7 2.0
--------- --------- --------- --------- ---------
* Contained lead t 6,791 7,016 13,807 1 5,140
--------- --------- --------- --------- ---------
Group cash and debt position
As of 30 June 2021, CAML had cash in the bank of $54.4 million
and gross debt of $60.9 million. Gross debt comprises $52.2 million
of corporate debt through Traxys Europe S.A. and $8.7 million of
North Macedonian drawn overdraft facilities with Ohridska Banka and
Komercijalna Banka AD Skopje.
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
Pascal Lussier Duquette
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 follow CAML on Twitter at @CamlMetals and on LinkedIn at
Central Asia Metals Plc
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