Weatherly International

Friday, 1st June 2018 09:31 - by Rajan Dhall

This morning it was announced that Weatherly International (WTI LN) would be suspended from trading on the AIM market as the Co's Tschudi mine remains fundamentally uncertain due to significant water damage.  The Company say 'Whilst water levels have been stabilised, it is not currently possible to assess the length of time required before full mining operations can be recommenced, nor can the full financial impact be assessed at this time.'

This is a significant blow to the investors who will be extremely disappointed by the news. On the 21st of May the company informed traders and investors 'Water levels in the pit are currently expected to stabilise in the near term as additional pumps arrive and are progressively installed.  However, several of the main areas of the pit where ore is exposed or available for mining are currently largely submerged.  There will be an unavoidable impact on copper production but this cannot be quantified at this time. The Company continues to assess how these water inflows will affect the economic life of the mine'

Its clear to see that the situation was unable to be contained and the Co.'s shares will sell off and probably hit an all time low. One has to wonder how low shares in the company can go, keep a close eye on any news as if they manage to rectify the situation we could see a relief rally although it's not very likely.

(WTI Weekly Chart)

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.