Last checked at 5 Oct 2016 07:00
5 October 2016
CENTRAL ASIA METALS PLC
("CAML" or the "Company")
Q3 2016 Operations Update
Central Asia Metals plc (AIM: CAML) today provides a Q3 2016 production and Stage 2 Expansion update for the Kounrad dump leach, solvent extraction and electro-winning (SX-EW) copper recovery plant in Kazakhstan ("Kounrad").
Summary:
· | Record quarterly copper production during Q3 2016, up 38% to 4,102 tonnes (Q3 2015: 2,966 tonnes) |
· | 2016 copper production to 30 September up 31% to 11,010 tonnes (to 30 September 2015: 8,410 tonnes) |
· | Record monthly copper production of 1,503 tonnes in August 2016 |
· | 2016 copper cathode sales to 30 September up 38% to 10,646 tonnes (to 30 September 2015: 7,699 tonnes) |
· | On track to achieve upper end of 2016 production guidance of between 13,000 and 14,000 tonnes |
· | Stage 2 Expansion on schedule for completion in October and approximately 25% below budget |
Kounrad Q3 2016 production
Kounrad Q3 production of 4,102 tonnes of copper cathode brings production for the first nine months of 2016 to 11,010 tonnes of copper cathode, a 31% increase on the corresponding period of 2015.
Copper cathode sales to 30 September 2016 of 10,646 tonnes represents an increase of 38% on the nine months to 30 September 2015. The copper was sold predominantly through CAML's off-take sales arrangement with Traxys.
Stage 2 Expansion update
The Stage 2 Expansion, comprising construction of the buildings, collector trenches, ponds and pipeline infrastructure to connect the SX-EW plant to the Western Dumps area, is on schedule and nearing completion and is approximately 25% under budget. Completion of this project will extend the life of the operation beyond 2030.
Electrical aspects of the project are complete, including the overhead power lines and sub-station construction. The required solution ponds have been excavated and lined, and the collector trenches will be completed in October, as will the irrigation system on the initial leaching blocks. The pregnant leach solution (PLS) and raffinate pipes from the Western Dumps to the SX-EW plant are now in position.
Nick Clarke, Executive Chairman, commented:
"We are delighted to report record quarterly production from our Kounrad plant, and expect to achieve annual copper production towards the upper end of the 13,000 to 14,000 tonne guidance range. Looking ahead, we have nearly completed our Stage 2 Expansion and will begin leaching copper from the Western Dumps in Q2 2017. As a result of the devaluation of the Kazakhstan Tenge as well as some engineering cost savings, we remain confident that we can complete this capex programme approximately 25% below our initial budget of US$19.5m. In Q4 2016, we will also complete the definitive feasibility study that is currently being concluded on our Copper Bay project in Chile."
For further information contact:
Central Asia Metals plc |
Tel: +44 (0) 20 7898 9001 |
Nick Clarke, Executive Chairman Nigel Robinson, CFO Louise Wrathall, Investor Relations louise.wrathall@centralasiametals.com |
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Peel Hunt (Nominated Adviser & Joint Broker) |
Tel: +44 (0) 20 7418 8900 |
Matthew Armitt Ross Allister |
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Mirabaud Securities (Joint Broker) | Tel: +44 (0) 20 7878 3362 |
Peter Krens |
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Bell Pottinger (PR Advisers) | Tel: +44 (0) 20 3772 2500 |
Aarti Iyer Richard Crowley |
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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.