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.