Business
2015 Production Update and 2016 Outlook
2015 Production Update and 2016 Outlook.
About this update from Central Asia Metals Plc
[{"type":"text","content":"\n \nRNS Number : 9211K Central Asia Metals PLC 06 January 2016 \n\n6 January 2016\n \nCentral Asia Metals plc\n(\"CAML\" or the \"Company\")\n2015 production update and 2016 outlook\nCentral Asia Metals plc (AIM: CAML) today provides a Q4 and full year 2015 production update, together with 2016 production guidance, for the Kounrad dump leach, solvent extraction and electro-winning (SX-EW) copper recovery plant in Kazakhstan (\"Kounrad\").\nSummary\n· Record annual copper production of 12,071 tonnes in 2015 (8.4% YoY increase);\n· 2015 C1 cash cost guidance, US$0.65 to US$0.70 per pound;\n· 2016 production guidance, 13,000 to 14,000 tonnes;\n· 2015 C1 cash costs expected to continue into 2016;\n· Cash as of 31 December 2015, US$42m.\n \n2015 Kounrad copper production and sales\n \nDuring Q4 2015, CAML produced 3,661 tonnes of copper from Kounrad (Q4 2014: 2,701 tonnes, 35% QoQ increase), bringing the total copper production for 2015 to 12,071 tonnes. This compares to production of 11,136 tonnes for 2014 and represents an 8.4% increase year on year. \n \nThe company sold 12,040 tonnes of copper cathode during 2015 (2014: 11,160 tonnes). These sales were predominantly through off-take arrangements with Traxys, which has been retained as CAML's offtake partner through to 31 December 2018, following a competitive tender process. The agreed terms with Traxys will provide additional cost savings to CAML and have been fixed for the 3 year period. \n \nAs of 31 December 2015, CAML's cash position was US$42m.\n \n2015 C1 cash cost guidance\n \nCAML reported a C1 cash cost of US$0.74 per pound for H1 2015, and now expects FY 2015 C1 cash costs of between US$0.65 and US$0.70 per pound. This cost reduction is due to a combination of efficiency improvements, increased copper production and the devaluation of the local currency. \n \n2016 production guidance\nThe Company is now targeting increased copper production for 2016 to between 13,000 and 14,000 tonnes, having completed the expansion of the Kounrad SX-EW plant capacity (Stage 1) in May 2015, ahead of schedule and below budget. \nConsistent monitoring and analysis of the copper leaching rate since production commenced...