Central Asia Metals maintains production guidance after slight declines

The AIM-traded firm said copper production at Kounrad totalled 3,641 tonnes for the quarter, a slight decrease from 3,661 tonnes in the third quarter of 2023, bringing total copper output for the first nine months of 2024 to 10,248 tonnes, compared to 10,377 tonnes in the same period last year.

At Sasa, zinc-in-concentrate production for the quarter was 4,768 tonnes, down from 5,127 tonnes in a year earlier, while lead-in-concentrate production stood at 6,864 tonnes, a slight drop from 7,039 tonnes on the year.

For the first nine months of 2024, zinc production reached 13,782 tonnes, and lead production was 19,736 tonnes, both reflecting year-on-year declines.

Despite the slight decreases, the company said it remained on track to meet its full-year guidance for copper production at Kounrad, targeting between 13,000 and 14,000 tonnes.

At Sasa, zinc and lead output was expected to be towards the lower end of the guidance range, with zinc production forecasted at 19,000 to 21,000 tonnes and lead production at 27,000 to 29,000 tonnes.

The company reported zero lost time injuries (LTIs) at both Kounrad and Sasa during the quarter.

“Kounrad continued to perform well in the third quarter of 2024, in line with its production performance in the corresponding period of last year, and maintained its excellent safety record,” said chief executive officer Gavin Ferrar.

“The third quarter is seasonally Kounrad's strongest quarter, and the operation remains on track to achieve full-year production firmly within the guidance range given at the start of this year.

“Sasa also performed well in the quarter, with the tonnage processed recovering from the levels of the first half towards the level recorded in the third quarter of last year.”

Ferrar said that represented a “great achievement” by the Sasa team, given the challenges posed by the transition to the new mining system designed to ensure the operation's long-term future.

Head grades, in particular zinc, also recovered relative to the first half, he added.

“We look forward to maintaining this progress in the fourth quarter, which we expect to result in full-year production towards the lower end of the guidance range.

“Meanwhile, the Capital Projects programme at Sasa is nearing completion, which includes moving to the use of paste backfill in mining and adopting dry-stack tailings.

“Together, these technologies form the core of Sasa's long-term strategy; maximising resource extraction, and extending the life of TSF 4 and thus avoiding the need for a new conventional tailings storage facility.”

At 0922 BST, shares in Central Asia Metals were up 0.65% at 191.83p.