Central Asia Metals plc (AIM: CAML) today provides a H1 2020 operations update for the Kounrad dump leach, solvent extraction and electro-winning ('SX-EW') copper recovery plant in Kazakhstan ('Kounrad') and the Sasa zinc-lead mine in North Macedonia ('Sasa').

H1 2020 operational highlights

No lost time injuries ('LTIs') at either operation

Production and sales volumes unaffected by COVID-19 pandemic

Kounrad copper production, 6,607 tonnes

Sasa zinc in concentrate production, 12,203 tonnes

Sasa lead in concentrate production, 15,140 tonnes

Group cash and debt position

Cash in the bank on 30 June 2020, $44.0 million

Gross debt (inclusive of overdraft) on 30 June 2020, $99.0 million

H1 2020 Traxys corporate debt facility repayments of $19.2 million

Nigel Robinson, Chief Executive Officer, commented: 'Today's update demonstrates a period of safe production from our two operations during H1 2020, with no lost time injuries. We remain firmly on course to achieve our 2020 production guidance for copper, zinc and lead.

'H1 2020 has brought its challenges, as COVID-19 related concerns and restrictions in Kazakhstan and North Macedonia meant that our site teams have faced and successfully managed many headwinds to maintain our metals production and sales, including making significant changes to our operating practices to ensure the health of all colleagues.

'However, as we enter Q3 2020, COVID-19 cases are rising in the local town close to the Kounrad operation and, despite our stringent on-site actions and health measures, some of our employees have recently been diagnosed with the virus. It is our duty to do our utmost to prevent the spread of this virus on our site and, to that end, we have taken the post-period end decision to temporarily reduce to a minimum the number of employees at Kounrad to further increase social distancing measures. Due to the relatively open nature of the operations, we are confident that such measures will be effective and, with our reduced staffing, we will be able to broadly maintain production for the near term.

'Our top priority is always the welfare of our employees and contractors.'

COVID-19 update

During H1 2020, both the Kounrad facility in Kazakhstan and the Sasa mine in North Macedonia continued to operate with no disruptions to production or sales due to COVID-19.

CAML COVID-19 related actions

The Company has put in place many measures during H1 2020 to try to ensure the safety of its employees and contractors on both sites, including: Establishing a COVID-19 'Crisis Committee', involving regular calls between CAML Group and operations teams to coordinate responses/actions and share ideas. Business continuity plans were developed and critical inventory levels were reviewed to support production in the event of supply disruptions

Staff at both operations and in the UK head office instructed to work from home where possible

A cessation of all but essential international travel

A cessation of all but necessary visitors to site (subject to authorisation from General Directors)

Identification and close monitoring of team members most vulnerable to COVID-19 with most now removed from the workplace

The distribution of COVID-19 related PPE to employees and contractors

Undertaking a detailed review of all activities at both sites to ensure that social distancing is at the heart of operations during the pandemic

Changes made to canteen and transport arrangements at both operations to increase social distancing

Relevant government guidance reinforced, and increased hygiene measures implemented on both sites

Employees instructed to stay at home if they suffer from any potential COVID-19 symptoms

Temperature testing on entry to transport buses and at the mine gate

Kazakhstan and North Macedonia update

Along with many other countries, the governments of Kazakhstan and North Macedonia had in May begun to ease lockdown restrictions on the movement of people, business operations and socialising. However, both countries are now experiencing an increasing number of COVID-19 cases. Kazakhstan has recently re-introduced a national lockdown.

Kounrad and Sasa

To date, 27 Kounrad employees have tested positive for COVID-19. Post the period end, the Company has temporarily reduced the total number of employees by 40% in order to further increase social distancing with a view to ensuring the virus does not spread on the Kounrad site. During this period, CAML currently expects to broadly maintain production, safely, albeit with minimal maintenance. The situation will be under constant review and updates provided as and when appropriate.

No CAML employees at Sasa have tested positive for COVID-19 and there are no reported cases in the town closest to the mine, Makedonska Kamenica.

Contact:

Tel: +44 (0) 20 7898 9001

Note to editors

Central Asia Metals, an AIM-listed UK company based in London, owns 100% of the Kounrad SX-EW copper project in central Kazakhstan and 100% of the Sasa zinc-lead mine in North Macedonia.

(C) 2020 Electronic News Publishing, source ENP Newswire