Central Asia Metals on track to hit full-year production guidance

12th Jul 2022 15:15

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

The AIM-traded firm reported Kounrad copper production of 6,617 tonnes for the period, up from 6,214 tonnes year-on-year.

Sasa zinc in concentrate production, meanwhile, fell to 10,465 tonnes from 11,292 tonnes, and Sasa lead in concentrate production was broadly stable at 13,827 tonnes, compared to 13,807 tonnes a year ago.

The company reported zero lost time injuries in the first half at Kounrad, and one lost time injury at Sasa.

On the financial front, Central Asia Metals reported cash at bank on 30 June of $57.7m, while gross debt including its $4.5m overdraft totalled $12.1m.

The group made corporate debt repayments of $16m in the period.

Looking ahead, the company said it was on track to achieve its 2022 full-year guidance, with copper set to be towards the top end of its 12,500 to 13,500 tonne guidance range.

Zinc in concentrate was set to be between 20,000 and 22,000 tonnes, and lead in concentrate was guided for 27,000 to 29,000 tonnes.

"We are pleased to report a safe quarter at CAML, with no lost time injuries recorded at either Kounrad or Sasa," said chief executive officer Nigel Robinson, referring to the second quarter.

"Production was strong for all three of our base metals.

"We are on track to achieve our 2022 guidance for copper, zinc and lead and we expect to be towards the top end of our copper target range."

Robinson said the firm's recent permitting successes in North Macedonia meant it was on course to complete construction and commissioning of its paste backfill plant - part of the cut and fill project - during the first half of 2023, as previously advised.

"There have clearly been global inflationary pressures during the last six months, but we have also seen strong metal prices during the last six months and therefore look forward to releasing our first half financial results on 14 September, when we will also announce our interim dividend.

"We remain on track to repay our corporate debt facility in full in August."

At 1455 BST, shares in Central Asia Metals were up 1.85% at 220p.

Reporting by Josh White at Sharecast.com.