Central Asia Metals PLC Operations Update to 30 June 2016 (0235D)
04 July 2016 - 7:00AM
UK Regulatory
TIDMCAML
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:
Tel: +44 (0) 20
Central Asia Metals plc 7898 9001
Nick Clarke, Executive Chairman
Nigel Robinson, CFO
Louise Wrathall, Investor
Relations
louise.wrathall@centralasiametals.com
Peel Hunt LLP (Nominated Tel: +44 (0) 20
Adviser & Joint Broker) 7418 8900
Matthew Armitt
Ross Allister
Mirabaud Securities LLP (Joint Tel: +44 (0) 20
Broker) 7878 3362
Peter Krens
Tel: +44 (0) 20
Bell Pottinger (PR Advisers) 3772 2500
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 ChaƱaral Bay, Chile. For further information,
please visit www.centralasiametals.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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July 04, 2016 02:00 ET (06:00 GMT)