Central Asia Metals PLC 2016 Operations Update (3776T)
January 05 2017 - 1:00AM
UK Regulatory
TIDMCAML
RNS Number : 3776T
Central Asia Metals PLC
05 January 2017
5 January 2017
CENTRAL ASIA METALS PLC
("CAML" or the "Company")
2016 Operations Update
Central Asia Metals plc (AIM: CAML) today provides a Q4 and full
year 2016 production update for the Kounrad dump leach, solvent
extraction and electro-winning (SX-EW) copper recovery plant in
Kazakhstan ("Kounrad").
Summary:
-- Record annual copper production of 14,020
tonnes (2015: 12,071 tonnes)
-- Q4 copper production of 3,010 tonnes (2015:
3,661 tonnes)
-- 2016 copper sales of 13,938 tonnes (2015:
12,040 tonnes)
-- 2017 production guidance of 13,000 to 14,000
tonnes
Kounrad Q4 2016 production
Kounrad Q4 output of 3,010 tonnes of copper cathode brings total
production for 2016 to 14,020 tonnes, a 16% increase on 2015. Total
copper produced from Kounrad since operations commenced in 2012 is
now 54,322 tonnes.
Copper cathode sales for the year ending 31 December 2016 of
13,938 tonnes represents an increase of 16% on 2015. The copper was
sold predominantly through CAML's off-take sales arrangement with
Traxys.
As of 31 December 2016, CAML's cash position was $40
million.
Stage 2 Expansion update
The Stage 2 Expansion project is now materially complete. This
work comprised construction of buildings, a boiler house, collector
trenches, electrical supply and infrastructure, as well as ponds
and pipelines to connect the SX-EW plant to the Western Dumps area.
The total capital cost is expected to be approximately 30% below
the original budget of $19.5 million. Copper production from the
Western Dumps will commence on schedule in Q2 2017.
2017 production guidance
CAML targets 2017 Kounrad copper cathode production of between
13,000 and 14,000 tonnes. The majority of 2017 copper production
will be leached from the Eastern Dumps. From Q2 2017 onwards, CAML
expects an increasing percentage of overall copper production to be
leached from the Western Dumps.
Copper Bay
The Copper Bay definitive feasibility study (DFS) was completed
at the end of Q4 2016 and is currently being reviewed by
management. The results of this study and plans for this project
will be announced in due course.
Nick Clarke, Executive Chairman, commented:
"Once again, we are pleased to report record annual copper
production and sales in 2016.
"In the coming year, we target copper production of between
13,000 and 14,000 tonnes and we will begin to supplement copper
from the Eastern Dumps with metal from the Western Dumps following
the completion of our Stage 2 Expansion programme.
"In an improved copper price environment and with all major
capital at Kounrad expended, we are optimistic about the future.
Our objective of continuing to deliver value to shareholders
through our industry leading dividend policy remains firmly in
place. Our 2016 annual results are scheduled to be released on 4
April 2017, when our final dividend for 2016 will also be
announced."
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 (Nominated Adviser Tel: +44 (0) 20
& Joint Broker) 7418 8900
Matthew Armitt
Ross Allister
Mirabaud Securities (Joint Tel: +44 (0) 20
Broker) 7878 3362
Peter Krens
Tel: +44 (0) 20
Bell Pottinger (PR Advisers) 3772 2500
Lorna Cobbett
Aarti Iyer
Marianna Bowes
Note to editors:
Central Asia Metals plc, 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 with the copper project in
Chañaral Bay, Chile. In November 2016, Central Asia Metals plc
signed a framework agreement to acquire an effective 80% interest
in the Shuak copper exploration property in northern Kazakhstan.
Central Asia Metals plc has a dividend policy based on distributing
a minimum of 20% of gross revenues from Kounrad. 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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