Production Update and Outlook

RNS Number : 0244X

Central Asia Metals PLC

07 January 2014

 



7 January 2014

CENTRAL ASIA METALS PLC

Production Update and Outlook

Central Asia Metals plc ("CAML" or the "Company" or, together with its subsidiaries, the "CAML Group") is pleased to announce its production update for 2013 and its production target for 2014 for the Kounrad Copper Project ("Kounrad").

Highlights:

·     Kounrad production and sales for 12 months ending 31 December 2013;

o  10,509 tonnes of copper cathode produced, and

o  10,665 tonnes of copper cathode sold

·     CAML Group  cash balance as at 31 December 2013 of US$47.9 million

·     2014 Kounrad production target set at 11,000 tonnes of copper cathode

Kounrad Production Update and Outlook

Production for the 12 months ended 31 December 2013, the first full calendar year of operations at the Kounrad SX-EW plant following the completion of the construction phase in late April 2012, was 10,509 tonnes of copper cathode, exceeding the 2013 target by 5%.

Sales of copper cathode during 2013 totalled 10,665 tonnes of which 10,500 tonnes were sold through the Company's off-take arrangements with Traxys and 165 tonnes were sold locally in Kazakhstan. The CAML Group's cash balance as of 31 December 2013 was US$47.9 million.

In 2014 the Company will commence the process of increasing capacity for the plant with a number of planned capital programmes. The initial upgrade to the plant's infrastructure will consist of the installation of two additional coal fired boilers at a capital cost of US$2.2 million, bringing the boiler capacity to 14MW which will facilitate an increased throughput in copper bearing solutions during winter operations. These additional boilers will enable the Company to increase its 2014 production target to 11,000 tonnes of copper.

Additional capital programmes aimed at further increasing the plant capacity will be announced following completion of the transfer to CAML of the remaining 40 per cent of the subsoil user licence associated with Kounrad.

Nick Clarke, Chief Executive Officer commented:

"2013 has proved to be another very successful year for the Company, with thanks due largely to the hard work, dedication and professionalism of our on-site staff at Kounrad. Production objectives for 2014 are focussed on an increased output target of 11,000 tonnes of copper cathode and to maintain tight control on costs.

We remain confident that we will be able to complete the acquisition of the remaining 40% of the subsoil-use rights at Kounrad and thus become the sole owner of the project.  Once this is completed, it will enable the company to make further announcements on the project expansion plans.

We have been producing copper at Kounrad for 20 months and have returned over US$21 million to shareholders during this period. The Company intends to maintain its dividend policy going forward and has the cash resources to undertake any planned capital programmes to increase production at Kounrad without compromising this policy."

Enquiries:

Central Asia Metals plc                                              Nick Clarke                         [phone]

Nigel Robinson

Canaccord Genuity Limited                                       Neil Elliot                           [phone]
Christopher Fincken

Mirabaud Securities LLP                                            Peter Krens                         [phone]

Bell Pottinger                                                               Charles Vivian                     [phone]

Lorna Spears

 

END

 

 

MSCUGUPGGUPCGRQ