TIDMCAML
RNS Number : 3056Z
Central Asia Metals PLC
11 January 2024
11 January 2024
CENTRAL ASIA METALS PLC
('CAML' or the 'Company')
2023 Operations Update
Central Asia Metals plc (AIM: CAML) today provides a Q4 and full
year 2023 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').
2023 summary
- Zero Lost Time Injuries ('LTIs') at Kounrad and one LTI at Sasa
- Copper production at Kounrad, towards the upper end of guidance range
o 13,816 tonnes
- Zinc and lead production at Sasa, in the middle of guidance range
o Zinc in concentrate production of 20,338 tonnes
o Lead in concentrate production of 27,794 tonnes
- Construction of Kounrad solar power plant completed and
generating renewable power for the operation
- Central Decline now operational
- Construction of Sasa Paste Backfill Plant completed and now operational
- New exploration licence granted in Kazakhstan targeting mid-scale copper deposits
- Cash balance at 31 December 2023 of $57.2 million
2024 outlook
- Production guidance
o Copper: 13,000 to 14,000 tonnes
o Zinc in concentrate: 19,000 to 21,000 tonnes
o Lead in concentrate: 27,000 to 29,000 tonnes
- Construction of Dry Stack Tailings Plant and initial landform
is expected to be completed in H1 2024
- Reduced carbon emissions expected in 2024 due to contribution
of solar power from new Kounrad facility
- Increased exploration work planned in Kazakhstan through CAML Exploration subsidiary
- Business development remains a priority
CAML production summary
Metal production (tonnes) Q4 2023 2023 2022
Copper 3,439 13,816 14,254
-------- ------- -------
Zinc 5,446 20,338 21,473
-------- ------- -------
Lead 7,022 27,794 27,354
-------- ------- -------
Nigel Robinson, Chief Executive Officer, commented:
"I am pleased to report steady, safe and reliable production
from both of our operations during 2023.
"At Kounrad we had a strong year, achieving copper production
towards the top end of our guidance range and, most importantly, in
a safe environment with 2,054 days since the last LTI. At Sasa, we
achieved production at the middle of our guidance range whilst also
delivering on the construction of the required infrastructure to
commence the transition to the paste fill mining methods. The
construction of the Dry Stack Tailings Plant and landform have
begun and will be a key focus for 2024.
"At Kounrad, I was delighted to officially open the solar power
plant in November 2023. It is anticipated that this facility will
provide 16-18% of the site's electrical needs on an annualised
basis and reduce Kounrad's Scope 1 and 2 emissions by 10% versus
2020.
"We look forward to delivering another year of safe and reliable
base metals production at our operations and looking for further
opportunities to grow the business. We were delighted to have
received confirmation in December 2023 that one of our new licence
applications for our target generation exploration programme in
Kazakhstan had been granted and we look forward to a full
exploration season this year.
"Our 2023 annual results are scheduled to be released on 25
March 2024, when our final dividend for 2023 will also be
announced."
Health and Safety
There were no LTIs at Kounrad or Sasa during Q4 2023. During the
12 months ended 31 December 2023, there were no LTIs at Kounrad and
one at Sasa.
Kounrad
Production and sales
Kounrad delivered Q4 2023 copper production of 3,439 tonnes,
bringing output for 2023 to 13,816 tonnes.
Copper sales during Q4 2023 were 3,469 tonnes, bringing the
total for 2023 to 13,687 tonnes. The Kounrad operation has now
produced over 152,000 tonnes of copper cathode since 2012.
Solar power plant
In Q4 2023, the solar power plant was constructed and is now
generating renewable power for the site. With the majority of the
installation and other works being conducted in-house, the project
was completed on schedule and under budget at a final cost of below
$3.5 million.
Sasa
Production and sales
In Q4 2023, mined and processed ore were 210,301 tonnes and
209,719 tonnes respectively, bringing the total for 2023 to 805,621
tonnes of ore mined and 805,819 tonnes of ore processed. The
average head grades for the quarter were 3.03% zinc and 3.59% lead,
and for the year were 2.97% and 3.70% respectively. The average
2023 metallurgical recoveries were 85.0% for zinc and 93.1% for
lead.
Sasa produces a zinc concentrate and a separate lead
concentrate. In Q4 2023, 10,720 tonnes of concentrate containing
50.8% zinc and 9,915 tonnes of concentrate containing 70.8% lead
were produced. Total production for 2023 was 40,226 tonnes of zinc
concentrate at an average grade of 50.6% and 39,136 tonnes of lead
concentrate at an average grade of 71.0%. 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 2023 payable production of zinc was
4,589 tonnes and of lead was 6,670 tonnes, bringing total 2023
payable production to 17,120 tonnes of zinc and 26,404 tonnes of
lead. Payable base metal in concentrate sales from Sasa in Q4 2023
were 4,517 tonnes of zinc and 6,416 tonnes of lead and for 2023
were 17,113 tonnes of zinc and 26,298 tonnes of lead.
During Q4 2023, Sasa sold 82,842 ounces of payable silver to
Osisko Gold Royalties and during 2023 sold 345,805 ounces, in
accordance with its streaming agreement.
Units Q4 2023 2023 2022
Ore mined t 210,301 805,621 806,069
--------- -------- -------- ---------
Plant feed t 209,719 805,819 80 6,653
--------- -------- -------- ---------
Zinc grade % 3.03 2.97 3. 15
--------- -------- -------- ---------
Zinc recovery % 85.6 85.0 84 .6
--------- -------- -------- ---------
Lead grade % 3.59 3.7 3. 63
--------- -------- -------- ---------
Lead recovery % 93.3 93.1 93.4
--------- -------- -------- ---------
Zinc concentrate t (dry) 10,720 40,226 42,824
--------- -------- -------- ---------
* Grade % 50.8 50.6 50.1
--------- -------- -------- ---------
* Contained zinc t 5,446 20,338 21,473
--------- -------- -------- ---------
Lead concentrate t (dry) 9,915 39,136 38,439
--------- -------- -------- ---------
* Grade % 70.8 71.0 71.2
--------- -------- -------- ---------
* Contained lead t 7,022 27,794 27,354
--------- -------- -------- ---------
Paste fill mining methods transition
The initial development of the Central Decline is complete, and
the decline is now operational. Construction of the Paste Backfill
Plant is complete, the plant is now operational and extraction of
ore by paste fill mining methods is underway. Construction of the
Dry Stack Tailings Plant and landform commenced in Q4 2023.
Exploration in Kazakhstan
During 2023, CAML developed an arrangement with a team of
experienced explorers, Terra Exploration, forming a new subsidiary,
CAML Exploration. Potential target areas have been reviewed and
remain under review, and currently one exploration licence has been
granted, with another four in application. The Company expects to
spend up to $3 million during 2024 on continuing its target
generation exploration work in Kazakhstan.
2024 guidance
CAML targets 2024 Kounrad copper production of between
13,000-14,000 tonnes of cathode. While the transition to the paste
fill mining methods is underway at Sasa, CAML maintains its ore
mined guidance year on year of 790,000 to 810,000 tonnes and its
expected metal production of 19,000 to 21,000 tonnes of zinc in
concentrate and 27,000 to 29,000 tonnes of lead in concentrate.
CAML expects its 2023 capex to be approximately 10% below the
guidance range of between $28 million and $30 million. In 2024,
Sasa expects to spend between $8 million and $9 million in
completing the construction of the Dry Stack Tailings Plant and
Landform and completing the new Central Decline. CAML also expects
to commit between $14 million and $16 million to sustaining capital
expenditure.
Cash
As of 31 December 2023, CAML had a cash balance of $57.2 million
and remains debt free.
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
Group 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
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 CAML
Exploration subsidiary was recently formed to progress early
exploration opportunities in Kazakhstan.
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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