Central Asia Metals production falls in first half

Central Asia Metals updated the market on operations at the Kounrad dump leach, solvent extraction and electro-winning (SX-EW) copper recovery plant in Kazakhstan, and the Sasa zinc-lead mine in North Macedonia on Thursday.

The AIM-traded firm said total copper production for the first half was 6,214 tonnes, down from 6,607 tonnes a year earlier.

Zinc production slipped to 11,292 tonnes from 12,203 tonnes, and lead production was 13,807 tonnes, compared to 15,140 tonnes in the first half of 2020.

On the operational front, Central Asia Metals said the river remediation project had been completed at Sasa.

No lost time injuries were reported in the period at Kounrad, while three were recorded at Sasa.

Financially, the company reported cash at bank of $54.4m (£39.47m) as at 30 June, while gross debt, including its $8.7m overdraft, was $60.9m.

The group made corporate debt repayments of $19.2m in the period.

Finally, looking at its governance, Central Asia Metals said its deputy chairman Nigel Hurst-Brown would retire from the board on 31 July.

“Completion of the river remediation project to the satisfaction of our local and national stakeholders has been the highlight of the first half, and we believe this draws a line under the tailings storage facility 4 incident, albeit with continued monitoring programmes remaining in place,” said chief executive officer Nigel Robinson.

“The three lost time injuries at Sasa were of course a disappointment, and lessons have been learnt from each of the incidents.

“Our copper production during the first half of the year at Kounrad was solid, and we are firmly on track to meet our full year guidance.”

At Sasa, Robinson said the first quarter mill shutdown, coupled with additional ground support requirements, had resulted in slightly lower first half zinc and lead production than the prior comparative period.

“We will provide further updates with regards to our 2021 production guidance, if required, later in the year.

“During the period we have seen strong metal prices, and therefore look forward to releasing our first half financial results on 15 September, when we will also announce our interim dividend.”

At 0920 BST, shares in Central Asia Metals were down 3.71% at 233.5p.