Central Asia Metals thrives despite low copper prices

A weaker Kazakh currency and increased efficiency made for a positive end to 2015 at Central Asia Metals, despite the low price climate for copper.

The AIM-listed metals miner updated the market on its Kounrad operation in Kazakhstan, including 2015 production and its guidance for this year.

During the fourth quarter of 2015, Central Asia Metals produced 3,661 tonnes of copper at Kounrad - a 35% increase quarter-on-quarter.

That brought the total production for 2015 to 12,071 tonnes, an 8.4% increase over the 11,136 tonnes seen in 2014.

Central Asia Metals sold 12,040 tonnes of copper cathode during 2015, up from 11,160 tonnes in 2014. The firm reported these sales were primarily through off-take arrangements with Traxys.

The company retained Traxys as its off-take partner through to the end of 2018, following a competitive tender process. Central Asia Metals' board said the agreed terms would provide additional cost savings, and have been fixed for the length of the deal.

Its full year costs were also looking lower, with an anticipated net direct (C1) cash cost of between $0.65 and $0.70 per pound, down from a reported first half cost of $0.74 per pound.

The miner said the reduction was due to a combination of efficiency improvements, increased copper production and the devaluation of the local currency.

Central Asia Metals was aiming to produce between 13,000 and 14,000 tonnes of copper in 2016, having completed the expansion of the Kounrad plant capacity in May 2015 ahead of schedule and reportedly below budget.

"Our cost discipline combines with the weakening of the Kazakh Tenge has significantly reduced the cost of our operation", said Central Asia Metals chief executive officer Nick Clarke.

"We are confident that we can continue to generate positive cashflows from the operation at Kounrad despite market headwinds, which have seen copper prices drop to a six year low in 2015."

Central Asia Metals was due to announce its full-year results for 2015 on 11 April.