Groundwork for the second phase of the expansion got underway in March, with first production from the Western Dumps at Kounrad expected in the first half of next year.
Central Asia Metals PLC produced 3,207 tonnes of copper from its Kounrad copper project in Kazakhstan during the first quarter of 2016, up a chunky 36.5% on the 2,305 tonnes produced in the corresponding period in 2015.
In turn, the company sold 2,550 tonnes during the period, up 14% on the 2,233 tonnes produced in the corresponding period of 2015.
The increase in production comes in the wake of the first phase of a planned expansion programme to the plant at Kounrad, which Central Asia delivered on time and on budget during 2015.
Groundwork for the second phase of the expansion got underway in March, with first production from the Western Dumps at Kounrad expected in the first half of next year.
The company now expects to deliver between 13,000 and 14,000 of copper this year, depending on “seasonal variations.”
Winter can be quite harsh in Kazakhstan and can often hamper the operating efficiencies of mining companies. Historically though, Central Asia Metals has coped well with the Kazakh winter.
The strong production numbers in the most recent quarter were also helped along by unusually mild temperatures for the time of year.
Broker Finncap reiterated its 264p price target and buy recommendation.
Source: Proactive investors
