Central Asia Metals confident after decent first-half

11th Jul 2023 14:24

(Sharecast News) - Central Asia Metals updated the market on its first-half operations on Tuesday, reporting that the Kounrad facility achieved zero lost-time injuries (LTIs) during the period.

The AIM-traded firm said that at the Sasa mine, however, there was one LTI reported during the period.

In terms of production volumes, Kounrad demonstrated solid performance with copper production reaching 6,716 tonnes.

The Sasa mine also delivered positive results, producing 9,764 tonnes of zinc-in-concentrate and 13,734 tonnes of lead-in-concentrate during the first half.

Central Asia Metals reported a healthy financial position, with $50.6m in cash reserves at period end on 30 June.

Looking ahead, the company said it was optimistic about meeting its full-year guidance for 2023.

The firm said it was confident in its ability to achieve projected targets for copper production of between 13,000 and 14,000 tonnes, zinc-in-concentrate production between 19,000 and 21,000 tonnes, and lead-in-concentrate production between 27,000 and 29,000 tonnes.

"We are pleased to report a positive start to 2023 with strong production across the group, meaning we are on track to meet guidance," said chief executive officer Nigel Robinson.

"I am particularly proud to mention that Kounrad achieved over four million lost-time injury-free hours by the end of the first half.

"On 27 May, we witnessed the joining of the Central Decline at Sasa which was developed both from surface and the 910 metre level."

Robinson said wet commissioning of the paste backfill plant had started, and the ground works for the dry stack tailings plant were underway.

"Benefitting from our low production costs, CAML continues to generate enviable cash flow and has a strong balance sheet with $50.6m in cash and no debt.

"This enables us to continue to pay some of the highest dividends in the sector whilst actively considering various business development opportunities.

"Our first half financial results will be released on 13 September, when we will also announce our interim dividend."

At 1405 BST, shares in Central Asia Metals were up 2.24% at 182.2p.

Reporting by Josh White for Sharecast.com.