Central Asia Metals hits record copper sales in August

Finncap Maintained Central Asia Metal (LON:CAML) as ‘Buy’ With 264 PT

Central Asia Metals, an AIM listed London based copper producer with operations in Kazakhstan and Chile, achieved record copper production in the third quarter at the Kounrad site in Kazakhstan.

Production rose a quarterly record of 38% to 4,102 tonnes compared to 2,966 tonnes in the previous period

Copper production to 30 September 2016 rose 31% to 11,010 tonnes compared to 8,410 tonnes in the previous period.

Copper cathode sales in the period rose 38% to 10,646 tonnes compared to 7,699 tonnes in the previous period. The copper was sold predominantly through the company’s off-take sales arrangement with financial and logistical solutions provider Traxys.

The firm is on track to achieve its target of 13,000 tonnes to 14,000 tonnes by the end of the year and its Stage 2 expansion is on schedule for completion in October.

Executive chairman Nick Clarke said: “Looking ahead, we have nearly completed our Stage 2 Expansion and will begin leaching copper from the Western Dumps in Q2 2017. As a result of the devaluation of the Kazakhstan Tenge as well as some engineering cost savings, we remain confident that we can complete this capex programme approximately 25% below our initial budget of US$19.5m. In Q4 2016, we will also complete the definitive feasibility study that is currently being concluded on our Copper Bay project in Chile.”

The share price rose 7.68% to 194.62p at 1032 BST on Wednesday.