Central Asia Metals meets, exceeds 2022 production guidance

10th Jan 2023 15:14

(Sharecast News) - Central Asia Metals updated the market on recent operations at the Kounrad dump leach, solvent extraction and electro-winning (SX-EW) copper recovery plant in Kazakhstan on Tuesday, as well as the Sasa zinc-lead mine in North Macedonia.

The AIM-traded firm said there were no lost time injuries at Kounrad in 2022, while there were two lost time injuries at Sasa.

It reported record copper production at Kounrad, above its guidance range, with 14,254 tonnes produced.

Zinc and lead production at Sasa, meanwhile, was within its guidance range, with zinc-in-concentrate production totalling 21,473 tonnes, and lead-in-concentrate production coming in at 27,354 tonnes.

Cash at the bank at year-end on 31 December totalled $60.6m, with the company now debt-free after the full repayment of its corporate debt facility in August.

Looking ahead, Central Asia Metals issued 2023 production guidance of between 13,000 and 14,000 tonnes of copper, 19,000 to 21,000 tonnes of zinc-in-concentrate, and 27,000 to 29,000 tonnes of lead-in-concentrate.

"I am delighted to report strong production from both of our operations during 2022," said chief executive officer Nigel Robinson.

"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."

Robinson described the two lost time injuries at Sasa as "disappointing", adding that the firm had 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 the first half.

"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 advance 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 the second half of 2023."

Nigel Robinson said the company was starting 2023 debt-free, and was looking to deliver "another year" of "strong" base metal production and begin the transition to the cut and fill mining method at Sasa.

"Our 2022 annual results are scheduled to be released on 29 March, when our final dividend for 2022 will also be announced."

At 1453 GMT, shares in Central Asia Metals were down 1.3% at 266.5p.

Reporting by Josh White for Sharecast.com.