Central Asia Metals plc operations report showed copper recovery above guidance and zinc-lead production within guidance from its operations in Kazakhstan and North Macedonia.
KOUNRAD
At the Kounrad dump leach, solvent extraction and electro-winning (SX-EW) copper recovery plant, the company reported record production of 14, 254 tonnes of copper, with zero lost time injuries.
The company began earthworks for the solar power project during Q4 2022 at a 10-hectare site close to the SX-EW plant.
Kounrad’s in-house engineering team is constructing the project expected to complete in the latter part of H2 2023.
SASA
Central Asia Metals recorded zinc in concentrate production of 21,473t and lead in concentrate production of 27,354t at the Sasa zinc-lead mine.
The average head grades for the year were 3.15% and 3.63% respectively, and the average 2022 metallurgical recoveries were 84.6% for zinc and 93.4% for lead.
During Q4 2022, Sasa sold 79,120 ounces of payable silver to Osisko Gold Royalties and during 2022 sold 316,757 ounces, in accordance with its streaming agreement.
The company reported two lost time injuries (LTIs), two medical treatment injuries and one restricted work case equating to five total recordable injuries.
Chief executive Nigel Robinson said that the two LTIs at Sasa were disappointing, and that the company had adapted training to mitigate against further similar incidents.
| Metal production (tonnes) | Q4 2022 | 2022 | 2021 |
| Copper | 3,569 | 14,254 | 14,041 |
| Zinc | 5,262 | 21,473 | 22,167 |
| Lead | 6,628 | 27,354 | 27,202 |
FINANCES
The company added it held $60.6 million cash in the bank as at 31 December 2022.
Central Asia Metals is debt free following the full repayment of the corporate debt facility in August 2022.
2023 GUIDANCE
The company outlined its guidance for the coming year as 13,000 to 14,000t copper; 19,000 to 21,000t zinc in concentrate, and 27,000 to 29,000t lead in concentrate.
At Sasa, the company maintains its ore mined guidance year on year of 790,000 to 810,000 tonnes.
Given the cut and fill project, group 2023 capital expenditure is expected to be between $28 million and $30 million, of which $11m to $13m is expected to be for sustaining capex.
The project capital expenditure also includes construction of the Kounrad solar power project, expected to cost between $4m and $5m.
CUT AND FILL
Mr Robinson added that as part of the cut and fill project at Sasa, construction of the paste backfill plant had begun and remained on schedule for H1 2023.
The project also comprises the construction of associated reticulation, a dry stack tailings plant and associated landform, and development of a new decline.
This aims to ensure maximum extraction of Sasa’s resources in the safest way, with minimal water usage and improved tailings management.
“Additionally, work on the central decline continues to progress towards the Svinja Reka ore body, with 1,051 metres being developed during the year bringing the total advanced to 1,554 metres.”
“We enter 2023 in a debt-free position and look forward to delivering another year of strong base metal production and beginning the transition to the cut and fill mining method at Sasa.”
The company expects to release its 2022 annual results on 29 March 2023 along with announcement of the final dividend for 2022.