TIDMWTI
RNS Number : 2614C
Weatherly International PLC
19 January 2018
19 January 2018
This Announcement includes release of insider information
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 December 2017.
Summary
-- Tschudi cathode production improved by 15% quarter on quarter
to 4,739 tonnes, which is 11.5% above nameplate over the
quarter
-- Tschudi C1 costs reduced by 16% to US$4,551 per tonne
Tschudi Production Performance
Production results for the quarter ended 31 December 2017
Quarter Quarter Quarter Quarter
ended ended ended ended
Mar-17 Jun-17 Sep-17 Dec-17
--------------------- -------- -------- -------- --------
Total (Ore + Waste)
Mined (000 tonnes) 5,117 6,051 6,314 5,869
--------------------- -------- -------- -------- --------
Ore Tonnes stacked
(000 tonnes) 563 726 666 733
--------------------- -------- -------- -------- --------
Ore Stacked grade
(per cent) 0.86 0.99 0.78 0.65
--------------------- -------- -------- -------- --------
Copper Cathode
Produced (tonnes) 3,236 3,386 4,105 4,739
--------------------- -------- -------- -------- --------
C1 Cost (US$/t) 5,907 6,344 5,402 4,551
--------------------- -------- -------- -------- --------
Tschudi production for the December quarter was 4,739 tonnes of
copper cathode, or 11.5% above nameplate. This brings year to date
production to 8,843 tonnes or 4% ahead of nameplate half way
through the financial year. This outcome was assisted by some
short-term benefits from relatively-fast leaching of additional
oxide ore mined from an interim pit pushback bringing forward some
leaching output. The grade of this additional oxide ore was lower,
reducing the tonnage of contained copper metal stacked in the
quarter. Some early seasonal rains were received on site but they
have had minimal impact upon the operation thus far.
Mining and stacking of slower-leaching mixed ore has resumed,
and the main wet season is now approaching.
Construction of the heap leach pad extension is complete. Some
operational delays are expected during a typical local rainy
season, but the expected impacts are reduced due to stacking of ore
on new leach pads rather than upon previously leached ore, and
because healthy stockpile levels of ore have been placed on the ROM
pad near the crusher in anticipation of rain delays impacting
mining. Forced aeration of some panels has commenced as part of
ongoing testing of how leach rates for mixed and sulphide ore may
be improved under modified operating conditions designed to
increase bacterial activity in the heap.
Open pit groundwater inflows, and the costs of dealing with
them, continue to increase as pit mining proceeds to greater
depths, but the flow rates are being managed adequately to ensure a
reliable supply of ore for stacking.
While the strong December quarter demonstrates the capacity of
the Tschudi SXEW plant to operate at well above nameplate levels
when leaching rates provide sufficient copper into solution, full
year production is not expected to exceed nameplate.
As a result of the improved production levels, Tschudi C1 unit
costs have fallen to US$4,551 per tonne. The Namibia Dollar
strengthened notably in December, and this will impact US$ costs
going forward if it is sustained.
Loan draw downs and hedges
Weatherly advises it has made no further drawdowns on the US$10
million uncommitted loan from Orion Mine Finance announced on 28
July 2017 to accelerate the building of the leach pads and to fund
working capital requirements at Tschudi. The Company has only drawn
down US$3m on the loan. To seek to ensure the loan would be
sufficient to meet the necessary funding requirements the Company
has hedged both copper and currency out to July 2018. In addition
to hedges previously announced, Weatherly has 990 tonnes fixed in
July at an average copper price of US$7,171 per tonne
As previously advised on 28 April 2017 as a loan rescheduling
fee, Orion has the right (but not the obligation) to buy, if
available, up to 700 tonnes of unhedged cathode each month from
Weatherly until 30 April 2018 at a price of US$6,000 per tonne.
Orion can only exercise its option to the extent of unhedged tonnes
produced in the month and so far this financial year Orion has not
elected to do so.
The Company and its subsidiaries are unlikely to generate
sufficient surplus cash to meet all loan repayments when due,
particularly in the near term. 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: Charlie Cryer
About Weatherly
Weatherly is an AIM listed copper mining company operating in
Namibia in southern Africa. Its principal assets are the Tschudi
Mine and the Otjihase Project. The Tschudi Mine is an operating
open pit mine producing refined copper cathode on site. The key
assets of the Otjihase Project are the Otjihase underground copper
mine and concentrator and the Matchless West underground copper
mine. The Otjihase Project assets are currently under care &
maintenance while in the Project Development stage. Weatherly also
owns 25% of China Africa Resources Namibia (CARN), a private
Namibian company which owns the high-grade Berg Aukas underground
zinc-lead-vanadium project. On 12 December 2017, Weatherly
announced that it had entered into an agreement to purchase the
Kitumba copper development project in Zambia, subject to regulator
and vendor shareholder approvals.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBGGDBDDBBGII
(END) Dow Jones Newswires
January 19, 2018 02:00 ET (07:00 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