Central Asia Metals (CAML.L) has reported a total copper production of 3,842 tonnes of copper from its Kounrad copper mine in the third quarter of this year. A decent result and we’re looking forward to see the company’s full-year financial results as the full-year production guidance of 13,000-14,000 tonnes is within reach.
Most attention will obviously be directed to the acquisition of Lynx Resources, which owns and operates the Sasa zinc-lead mine in Macedonia for a total of $403M. That will indeed be a transformational acquisition, but it does look like CAML is paying top dollar if you use a zinc price of $1.20 and a lead price of $1/lb as longer term price deck. The jury’s out on the deal, but it will definitely immediately transform Central Asia Metals which will now join the league of mid-size base metal companies, as it’s continuing to drill the Shuak project as well.
Got to CAML’s website
The author has no position in Central Asia Metals. Please read the disclaimer
