Central Asia Metals flags full-year Sasa production at low end of guidance

Central Asia Metals updated the market on the first-half performance of its Kounrad copper recovery plant in Kazakhstan and the Sasa zinc-lead mine in North Macedonia on Thursday.

The AIM-traded firm said Kounrad achieved copper production of 6,608 tonnes, slightly down from 6,716 tonnes in the first six months of 2023.

Sasa produced 9,014 tonnes of zinc-in-concentrate and 12,872 tonnes of lead-in-concentrate, compared to 9,764 tonnes and 13,734 tonnes, respectively, in the same period last year.

The operations at Kounrad reported zero lost time injuries (LTIs), while Sasa recorded one LTI.

As of 30 June, CAML had $56.4m in cash.

Looking ahead, CAML said Kounrad was on track to meet its full-year copper production guidance of 13,000 to 14,000 tonnes.

Sasa was expected to achieve production towards the lower end of its 2024 guidance, with zinc-in-concentrate ranging between 19,000 to 21,000 tonnes and lead-in-concentrate between 27,000 to 29,000 tonnes.

“Kounrad performed well during the second quarter of 2024, bringing first-half production into line with prior years, after facing some difficult winter weather conditions in the first quarter of this year,” said chief executive officer Nigel Robinson.

“Production at Sasa in both the second quarter and the first half 2024 has been impacted by a modest reduction in mined tonnage, owing principally to the short-term challenges inherent in the transition to a new mining method.

“This transition, which continued during the quarter, will be of material benefit in the longer-term, by sustaining the life of both the underground mine and its associated tailings storage facilities.”

Robinson said the company looked forward to an improvement in mined tonnage at Sasa during the second half, as the mining transition progresses.

“However, taking into account the production levels achieved during the first half, we expect full-year production at Sasa to be towards the lower end of our previously announced guidance.

“Our first-half financial results will be released on 10 September, when we will also announce our interim dividend.”

At 1124 BST, shares in Central Asia Metals were down 2.66% at 201p.

Reporting by Josh White for Sharecast.com.