Operations Update to 30 June 2016

RNS Number : 0235D

Central Asia Metals PLC

04 July 2016

 

4 July 2016

CENTRAL ASIA METALS PLC

("CAML" or the "Company")

Operations Update to 30 June 2016

Central Asia Metals plc (AIM: CAML) today provides a production and Stage 2 Expansion update for the six months to 30 June 2016 (H1 2016) for the Kounrad dump leach, solvent extraction and electro-winning (SX-EW) copper recovery plant in Kazakhstan ("Kounrad").

Summary:

·    Q2 2016 copper production up 20% to 3,701 tonnes (Q2 2015: 3,093 tonnes)

·    H1 2016 copper production up 27% to 6,908 tonnes (H1 2015: 5,444 tonnes)

·    H1 2016 copper cathode sales up 24% to 6,355 tonnes (H1 2015: 5,120 tonnes)

·     On track to achieve 2016 production guidance of between 13,000 and 14,000 tonnes

·    Stage 2 Expansion, on schedule and under budget

Kounrad H1 2016 production

Kounrad Q2 production of 3,701 tonnes of cathode copper brings production for the first six months of 2016 to 6,908 tonnes of cathode copper, a 26.9% increase on the corresponding period of 2015.

H1 2016 copper cathode sales of 6,355 tonnes represents an increase of 24.1% on H1 2015. The copper was sold predominantly through our sales agreement with Traxys, CAML's off-take partner, and 3,125 tonnes were sold in Q2 2016 at a fixed price of $5,025 per tonne.

Stage 2 Expansion update

Construction of the buildings, collector trenches, ponds and pipeline infrastructure to connect the SX-EW plant to the Western Dumps area is progressing on schedule and under budget.

Construction of the main buildings consisting of pump houses and a boiler house are nearing completion, with boilers in position and the chimney erected.  Three solution ponds have been excavated and will be lined in July, whilst the installation of the 24km solution transfer pipeline infrastructure for PLS and raffinate is now 30% complete.

The water pipeline that will supply water to the site from Lake Balkhash is 95% complete and will be commissioned during Q3 2016.

The scheduled completion date of the Stage 2 Expansion is October 2016 with leaching operations on the Western Dumps planned to commence in Q2 2017. Completion of this project will extend the life of the operation beyond 2030.

Cash

As of 30 June 2016, CAML had cash in the bank of $30.2m and no debt. The reduction of cash since 31 December 2015 is due to payment of the $12.5m 2015 final dividend, and capital expenditure to fund the Stage 2 Expansion project.

Nick Clarke, Executive Chairman, commented:

"We are delighted to report record half yearly production and sales figures from our Kounrad plant, while our Stage 2 Expansion work is progressing on schedule and under budget. We reiterate our 2016 copper production guidance range of between 13,000 and 14,000 tonnes. In H2 2016, we aim to complete our Stage 2 Expansion works, which will be the last major capital programme required at Kounrad, and to conclude our definitive feasibility study for Copper Bay."

For further information contact:

Central Asia Metals plc	Tel: [phone]
Nick Clarke, Executive Chairman Nigel Robinson, CFO Louise Wrathall, Investor Relations [e-mail]
Peel Hunt LLP (Nominated Adviser & Joint Broker)	Tel: [phone]
Matthew Armitt Ross Allister
Mirabaud Securities LLP (Joint Broker)	Tel: [phone]
Peter Krens
Bell Pottinger (PR Advisers)	Tel: [phone]
Aarti Iyer Richard Crowley

Note to editors:

Central Asia Metals, an AIM-listed UK company based in London, owns 100% of the Kounrad SX-EW copper project in Kazakhstan. The Company also has a 75% equity interest in Copper Bay Ltd, which is a private company conducting a definitive feasibility study at its copper project in Chañaral Bay, Chile. For further information, please visit www.centralasiametals.com.  

 

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