2nd Jul 2014 09:57
LONDON (Alliance News) - Central Asia Metals PLC Wednesday said its production increased in the first half of 2014 in line with the company's expectations, and the first stage of its major expansion programme has begun.
The Central Asia-focused copper producer said its first half production increased 4.9% to 5,094 tonnes of copper, from 4,857 tonnes in the first half of 2013, which is in line with the company's full year production target of 11,000 tonnes.
The company said its second quarter production was up 3.4% to 3,188 tonnes of copper, compared with 3,081 tonnes the previous year.
However, Central Asia Metals did note that its sales volumes, mainly through an offtake agreement with Traxys SA, fell 6.5% in its first half to 4,676 tonnes, from 5,000 tonnes the previous year.
The company said that construction and installation works for its boiler house expansion are 75% complete and remain on schedule for commissioning in the third quarter. The expansion will facilitate an increase in production and output during the winter months.
Central Asia Metals became the sole owner of the Kounrad copper project in Kazakhstan during May after acquiring the 40% stake it didn't already own in the site from Non-Executive Director Kenges Rakishev.
It said at the time that it planned to increase copper production at Kounrad to around 15,000 tonnes a year by 2016 at an estimated cost of USD35 million, from 10,000 tonnes a year currently.
The company said on Wednesday that the expansion programme is underway with designs completed and the steel framework ready for shipment to the site, before earthworks start this month.
Central Asia Metals shares were untraded at 160.00 pence on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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