Kounrad Production Update

RNS Number : 0721S

Central Asia Metals PLC

03 July 2015

 

3 July 2015

CENTRAL ASIA METALS PLC

("CAML" or the "Company")

Kounrad Production Update

Central Asia Metals plc (AIM: CAML), owner and operator of the Kounrad copper cathode producing facility in Kazakhstan, today provides a production update for the six months ended 30 June 2015 and  revised 2015 full year production guidance following the impact of the incident reported on 29 June 2015.

Summary:

·     Q2 2015 production of 3,093 tonnes of copper

·     H1 2015 production of 5,444 tonnes of copper, up 6.9% vs. H1 2014 (5,094 tonnes)

·     H1 2015 sales of 5,120 tonnes of copper, up 9.5% vs. H1 2014 (4,674 tonnes)

·    Revised 2015 production target of 12,000 tonnes of copper due to mechanical incident at Kounrad

Kounrad H1 2015 production

Kounrad Q2 production of 3,093 tonnes of cathode copper brings production for the first six months of 2015 to 5,444 tonnes of cathode copper, a 6.9% increase on the corresponding period of 2014. This increase is largely due to the expanded boiler-house capacity at the plant resulting in higher solution volume treatment rates during the winter months.

Kounrad production FY 2015 guidance

Following the announcement on 29 June 2015 regarding an incident on site, CAML management is now in a better position to inform the market of the potential impact on its 2015 full year production guidance.

The SX-EW plant is now operating at 45% capacity following the incident. Orders for the replacement organic inventory have already been placed and are expected to be delivered to site by the middle of August.

Following their arrival they will be added to the SX circuit, after which the dump leaching process will need to reach pre-incident flow rates, which are more than double the current level. Management anticipate that the overall circuit will be back at design capacity by the beginning of September.

This incident will impact the Company's previously stated 2015 production target of 13,000 tonnes of copper.  The Company will strive throughout H2 2015 to mitigate the position but at present estimates that the impact on 2015 full year production guidance will be approximately 1,000 tonnes of cathode copper.

Nick Clarke, CEO commented:

'We delivered a solid six months of production in H1 as the expanded boiler house capacity allowed for increased production, and the expansion of our SX-EW facilities was completed during the period.

The incident we reported on 29 June will impact our full year by approximately 1,000 tonnes, although our 2015 production will nonetheless see an increase on the 11,136 tonnes produced in 2014. The Kounrad SX-EW plant has now operated for 38 months at an average utilisation rate of 98%, and this incident is the first such interruption in the plant's production. I would like to take this opportunity to thank the local site management and staff for responding promptly to the incident and for getting the SX-EW plant back up and running so quickly.

CAML remains confident that our low cost operations will allow us to continue our focus on returns to shareholders.' 

 For further information contact:

Central Asia Metals plc	Tel: [phone]
Nick Clarke, CEO Nigel Robinson, CFO
Peel Hunt LLP (Nominated Adviser & Joint Broker)	Tel: [phone]
Matthew Armitt Ross Allister
Mirabaud Securities LLP (Joint Broker)	Tel: [phone]
Peter Krens
Bell Pottinger	Tel: [phone]
Lorna Cobbett

Note to editors:

Central Asia Metals PLC, an AIM-listed UK company based in London, owns 100% of the Kounrad SX-EW copper facility in Kazakhstan. The Company has recently invested a further $3m into Copper Bay Ltd in order to increase its ownership to 75%.  Copper Bay Limited is a private company that has just completed a pre-feasibility study of the Chañaral Bay Copper Project in Chile.  At the 2014 UK Stock Market Awards, CAML was named Best Basic Resources Plc. For further information, please visit www.centralasiametals.com.

 

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