TIDMWTI
RNS Number : 3673M
Weatherly International PLC
28 July 2017
28(th) July 2017
This Announcement includes release of insider information
Weatherly International plc
("Weatherly" or "the Company")
Funding Update and Quarterly Operations and Production
Update
Weatherly International plc (AIM: WTI) announces its update for
the quarter ended 30 June 2017 and an additional US$10m
facility.
Summary
-- Tschudi production for the quarter was 3,386 tonnes of copper cathode, 20% below nameplate
-- C1 costs for the quarter increased by 7% to US$6,344 per tonne
-- Financial year to June 2017 cathode production and C1 unit
costs were within the revised guidance ranges
-- Uncommitted US$10million facility entered into at libor+2%.
Tschudi Production Performance
Production results for the quarter ended 30 June 2017
Quarter Quarter Quarter Quarter
ended ended ended ended
Sep-16 Dec-16 Mar-17 Jun-17
--------------------- -------- -------- -------- --------
Total (Ore + Waste)
Mined (000 tonnes) 5,703 5,546 5,117 6,051
--------------------- -------- -------- -------- --------
Ore Tonnes stacked
(000 tonnes) 670 702 563 726
--------------------- -------- -------- -------- --------
Ore Stacked grade
(per cent) 0.89 0.88 0.86 0.99
--------------------- -------- -------- -------- --------
Copper Cathode
Produced (tonnes) 3,641 4,496 3,236 3,386
--------------------- -------- -------- -------- --------
C1 Cost (US$/t) 5,073 4,222 5,907 6,344
--------------------- -------- -------- -------- --------
Cathode production tonnages improved through the quarter after
reaching particularly low levels in March and April. The
improvement was due to an increased rate of stacking contained
copper metal tonnages rather than any improvement in the rates of
leaching on a percentage basis. High mining and stacking volumes
for the quarter meant that despite a 5% cathode tonnage
improvement, C1 unit costs for the quarter increased by 7% to
US$6,344 per tonne.
For the full financial year cathode production was 14,759
tonnes, within the revised guidance range but 13% below the 17,000
tonnes per annum nameplate for Tschudi. Financial year C1 unit
costs were US$5,288 per tonne, within the revised guidance range of
US$5,250 to $5,350 per tonne.
Construction of the extended heap leach pad area continues on
schedule in order 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. As previously announced,
investigations continue into how leach rates can be improved under
modified operating conditions. To this end, the Company has engaged
an independent consultant to provide guidance and advice into leach
rates and the ultimate recoveries that can be expected. Further
updates will be provided in due course.
Debt Financing
The Company announces that it has entered into an uncommitted
US$10 million facility with Orion Mine Finance. The key terms of
this additional uncommitted facility include inter alia an interest
rate of Libor plus 2%, a drawdown period up to 30 June 2018, and a
due date of 28 February 2020. The facility will be made directly to
one of the Company's Namibian subsidiaries with the Company, and
certain of its other subsidiaries acting as guarantors.
The proceeds of the US$10 million facility will be applied to
accelerate the building of the leach pads and fund operating costs
and general working capital requirements at Tschudi.
Orion is a related party of the Company by virtue of Orion being
a substantial shareholder in the Company and consequently the US$10
million facility is deemed to be a related party transaction under
the AIM Rules for Companies. The independent directors of Weatherly
(being all of the directors other than Edwin Bennett, by virtue of
his association with Orion) consider, having consulted with
Weatherly's nominated adviser, RFC Ambrian Limited, that the terms
of the US$10m facility are fair and reasonable insofar as
Weatherly's shareholders are concerned.
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. 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
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