Q1 2020 operational highlights
l
Production and sales unaffected by
COVID-19 pandemic
l
No lost time injuries ('LTIs') at
either operation
l
Kounrad copper production, 3,201
tonnes
l
Sasa zinc in concentrate production,
6,127 tonnes
l
Sasa lead in concentrate production,
7,607 tonnes
Outlook
l
Production currently on track to meet
full year 2020 guidance for copper, zinc and lead
1.
copper, 12,500 - 13,500 tonnes
2.
zinc, 23,000 - 25,000 tonnes
3.
lead, 30,000 - 32,000 tonnes
l
Global health, metal price and
economic uncertainty remains regarding COVID-19 pandemic
CAML production summary
Metal production (tonnes)
|
Q1 2020
|
Q1 2019
|
Copper
|
3,201
|
2,952
|
Zinc
|
6,127
|
5,639
|
Lead
|
7,607
|
7,212
|
Nigel Robinson, Chief Executive Officer,
commented:
"We are today reporting strong Q1 2020
production numbers for all three of the base metals that we produce, with
increases quarter on quarter for copper, zinc and lead. We experienced no
disruptions to either the production or sales of our metal products during
Q1 2020.
"While we retain our 2020 production
guidance, we remain cautious for the Q2 2020 outlook in particular as
cases of COVID-19 in both Kazakhstan and North Macedonia are increasing,
and government measures are understandably escalating. That said, having
made the difficult recent decision not to recommend a 2019 final dividend,
we believe we have ensured the continued financial strength of our
business while the pandemic continues.
"The welfare of our employees and contractors
is our top priority."
Overview - COVID-19
During Q1 2020, both the Sasa mine in North
Macedonia and the Kounrad facility in Kazakhstan continued to operate,
with no disruptions to production or sales during the period due to
COVID-19. No CAML employees have to date been diagnosed with COVID-19 at
either operation and the Company has implemented various health measures
on its sites, including issuing COVID-19 related personal protective
equipment ('PPE'), reinforcing government guidance and hygiene measures,
and limiting visits to site.
The Government of Kazakhstan has declared a State
of Emergency and has implemented several measures intended to curtail the
spread of the pandemic, such as a total lock-down of the cities of
Nur-Sultan and Almaty as well as some other larger cities. The borders
have been closed for the movement of people but not goods. Currently, 704
people have tested positive for COVID-19 in Kazakhstan, with the numbers
rising daily.
Similarly, the Government of North Macedonia has
declared a State of Emergency, implementing measures such as school
closures, night-time curfews and closure of borders to the movement of
people and in some cases the movement of trade vehicles. Sasa has to date
been able to continue truck movements across the borders and has
particular arrangements in place regarding the curfew to enable its night
shift to continue to operate. Currently, 599 people have tested positive
for COVID-19 in North Macedonia, with the numbers rising daily.
Kounrad
Kounrad Q1 2020 copper production was 3,201
tonnes. Total Kounrad copper production since operations commenced in 2012
is now 99,446 tonnes, and the Company expects to reach the milestone of
100,000 tonnes of copper produced from Kounrad in Q2 2020.
Total copper recovered from the Western Dumps in
Q1 2020 was 2,396 tonnes, equating to approximately 75% of the amount
plated.
Copper sales during Q1 2020 were 3,191 tonnes.
Sasa
The new tertiary crusher which was installed in
December 2019 was fully commissioned in January 2020. It is performing in
line with expectations and consequently the Q1 2020 throughput rate of the
Sasa processing plant was approximately 845,000 tonnes per year, up from
approximately 820,000 tonnes in 2019.
Having made the Q4 2019 decision to begin a fleet
replacement programme of underground equipment, the Sasa team placed
orders and the first of six new pieces of equipment, a new Epiroc Boomer
drill rig, has arrived on site and is now operational.
Despite travel restrictions, technical work
continues for the Life of Mine study that is appraising the change in
mining method from the current sub-level caving method to cut and fill
stoping. The study is currently expected to be completed during H2 2020.
Production
In Q1 2020, mined and processed ore were 207,788
tonnes and 210,664 tonnes respectively. The average head grades for the
period were 3.37% zinc and 3.82% lead. Q1 2020 metallurgical recoveries
were 86.4% for zinc and 94.5% for lead.
Sasa produces a zinc concentrate and a separate
lead concentrate. In Q1 2020, 12,315 tonnes of concentrate containing
49.8% zinc and 10,560 tonnes of concentrate containing 72.0% lead were
produced.
Sasa typically receives from smelters
approximately 84% of the value of its zinc in concentrate and
approximately 95% of the value of its lead in concentrate. Accordingly, Q1
2020 payable production was 5,142 tonnes of zinc and 7,227 tonnes of lead.
Given that deliveries from Sasa to the smelters occur on a regular basis,
payable base metal in concentrate sales for the quarter were similar at
5,182 tonnes of zinc and 7,296 tonnes of lead.
During Q1 2020, Sasa sold 91,598 ounces of payable
silver to Osisko Gold Royalties, in accordance with its streaming
agreement.
|
Units
|
Q1 2020
|
Q1 2019
|
Ore mined
|
t
|
207,788
|
197,836
|
Plant feed
|
t
|
210,664
|
199,489
|
Zinc grade
|
%
|
3.37
|
3.26
|
Zinc recovery
|
%
|
86.4
|
86.8
|
Lead grade
|
%
|
3.82
|
3.84
|
Lead recovery
|
%
|
94.5
|
94
|
Zinc concentrate
|
t (dry)
|
12,315
|
11,447
|
- Grade
|
%
|
49.8
|
49.3
|
- Contained
zinc
|
t
|
6,127
|
5,639
|
Lead concentrate
|
t (dry)
|
10,560
|
9,870
|
- Grade
|
%
|
72
|
73.1
|
- Contained
lead
|
t
|
7,607
|
7,212
|
Source: Central
Asia Metals
|