TIDMWTI
RNS Number : 4490D
Weatherly International PLC
27 April 2017
27(th) April 2017
Weatherly International plc
("Weatherly" or "the Company")
Quarterly Operations and Production Update
Weatherly International plc (AIM: WTI) announces its update for
the quarter ended 31 March 2017.
Summary
-- Tschudi production for the quarter was 3,236 tonnes of copper cathode, 24% below nameplate
-- C1 costs for the quarter increased to US$5,907 per tonne
-- Financial year to June 2017 production is expected to be
14,500-15,000 tonnes of copper cathode produced at C1 costs of
US$5,250-5,350 per tonne
-- Agreement in principle reached for deferral of loan repayment due on 30(th) April 2017
Tschudi Production Performance
Production results for the quarter ended 31 March 2017
Quarter Quarter Quarter Quarter
ended ended ended ended
Jun-16 Sep-16 Dec-16 Mar-17
------------------------- -------- -------- -------- --------
Total (Ore + Waste)
Mined (000 tonnes) 6,826 5,703 5,546 5,117
------------------------- -------- -------- -------- --------
Ore Tonnes stacked
(000 tonnes) 556 670 702 563
------------------------- -------- -------- -------- --------
Ore Stacked grade
(per cent) 0.88 0.89 0.88 0.86
------------------------- -------- -------- -------- --------
Copper Cathode Produced
(tonnes) 3,812 3,641 4,496 3,236
------------------------- -------- -------- -------- --------
C1 Cost (US$/t) 4,689 5,073 4,222 5,907
------------------------- -------- -------- -------- --------
On 6 April 2017, the Company provided an update for copper
cathode production during the March 2017 quarter. Weatherly advised
that cathode production had fallen to 24% below nameplate due to
slower than anticipated leach rates for mixed oxide / sulphide ore
stacked during latter parts of 2016 and early 2017, and that the
Company had been unable to compensate due to above average seasonal
rainfall during the quarter which prevented short-term acceleration
of mining and stacking.
Mixed oxide / sulphide ore stacked earlier in 2016 had leached
at rates as predicted in the 2012 Bankable Feasibility Study (BFS).
However mixed ore stacked later in 2016 showed slower leaching
characteristics over time, leading to the current production
shortfalls. Investigations continue with appropriate external
assistance and advice to determine how site operating parameters
may be changed to ensure that optimal conditions for bacterial
leaching of sulphide minerals are maintained in the heap in order
to maximize leach rates and ultimate overall recoveries of copper
from stacked ore. The changes currently under investigation include
changes to solution chemistry, potential for forced aeration of the
heap, modified irrigation strategies, and possible changes to lift
heights.
In the meantime capital construction of the stage two heap leach
pad area has commenced to provide additional time for the leaching
of copper from mixed ore currently under irrigation, and also for
implementation of changed operating parameters for this ore prior
to sealing and over-stacking.
Groundwater management in the open pits had no adverse effect on
mining during the quarter, with groundwater inflows managed using
the in-pit pumping systems. Detailed investigations continue into
opportunities to reduce operating costs and production delay risks
via capital expenditure to enable removal of groundwater before it
enters the pits.
During April, rates of stacking contained copper metal tonnes
onto the heap have improved and the rate of leaching copper metal
tonnes into solution is expected to improve during the June
quarter. However April's cathode production tonnage will remain
weak.
Full financial year production to June 2017, as previously
advised, is now forecast to be 14,500 to 15,000 tonnes.
The poor production result in the March quarter has caused C1
quarterly operating costs to increase to US$5,907/t. Full financial
year C1 costs are now forecast to be US$5,250-5,350 per tonne.
During the quarter, Orion assisted the company to secure some
further hedging of production revenue, with 550 tonnes per month of
cathode sales hedged at US$6,000 per tonne for April to December
2017 in addition to the existing hedging positions reported on 26
January 2017.
Rescheduling of repayments
As announced on 23 February 2017, the first repayment of
Facility B and the repayments of Facility C and Facility D due to
Orion Mine Finance (Master) Fund I LP ("Orion") are all due on 30
April 2017.
Following discussions between the Company and Orion, which is
also the Company's largest shareholder, Orion and the Company have
agreed in principle to defer the payment of these installments and,
as a loan rescheduling fee, effect an offtake agreement amendment.
Finalisation of definitive documentation for these arrangements is
underway and is expected to be concluded within a short period.
Further announcements on these arrangements will be made in due
course.
If copper prices remain at current levels it is unlikely that
the Company and its subsidiaries will generate sufficient surplus
cash to meet all loan repayments when due and planned capital
expenditure to support achieving production and operating cost
targets. The Company continues to positively engage with Orion on
the subject.
For further information please contact:
Weatherly International plc +44 (0) 1707 800 774
Craig Thomas, Chief Executive Officer
Kevin Ellis, CFO and Company Secretary
RFC Ambrian Limited +44 (0) 20 3440 6800
(Nominated Adviser & Broker)
Nominated adviser contact: Stephen Allen / Bhavesh Patel
Broker contact: Kim Eckhof
Blytheweigh +44 (0) 20 7138 3204
(Financial PR) Tim Blythe / Camilla Horsfall / Nick Elwes
About Weatherly
Weatherly is an AIM listed copper mining company operating in
Namibia in southern Africa. Its principal assets are one operating
open pit copper mine called Tschudi and two underground copper
projects called Otjihase and Matchless.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLBUGDSGGDBGRL
(END) Dow Jones Newswires
April 27, 2017 02:00 ET (06:00 GMT)
Wti Oil Etc (LSE:WTI)
Historical Stock Chart
From Apr 2024 to May 2024
Wti Oil Etc (LSE:WTI)
Historical Stock Chart
From May 2023 to May 2024