WTI...Operations Update14 Sep 2015 09:08
Tschudi production guidance increased
and
Central Operations converted to Project Development
Weatherly International plc (AIM: WTI) announces that, whilst maintaining its focus on the ramp-up at its Tschudi mine where production is exceeding expectations, it will convert its Otjihase and Matchless mines ("Central Operations") to a project development status as the Company prepares them for future production expansion.
Summary
· Tschudi production guidance for the current quarter is upgraded by 15% from 1,000 to 1,150 tonnes of copper metal per month.
· Otjihase and Matchless will convert to a project development status in order to prepare the mines for future production of larger volumes of copper concentrate at lower unit costs, when market conditions improve.
· Production of copper concentrate at Central Operations is subsequently suspended during this low copper price environment.
Craig Thomas, CEO of Weatherly, commented:
"We maintain our focus on Tschudi and the ramp up has progressed well ahead of schedule. I am pleased to confirm our previous commitment that, before year end, Weatherly will be operating a new 17,000 tonnes of copper metal per annum open pit copper mine in the best mining country in Africa, producing some of the highest quality copper cathode in the world.
"Due to 2015 copper prices reaching the lowest levels in six years, copper production at Central Operations is no longer commercially viable. As a consequence, management has had to implement measures which, in the short term, reduce costs but, in the longer term, look to create a viable future."
Tschudi
In July the Company indicated production guidance for the current quarter of, on average, 1,000 tonnes per month (70% of design capacity) of copper cathode for the current September Quarter. The Company now advises that it expects production will exceed these levels by approximately 15% to reach 1,150 tonnes per month, on average, or approximately 80% of design capacity, for the current quarter.
Central Operations
As a consequence of the marked decline in world copper prices from January 2015, copper production levels at Central Operations in CY2015 have been insufficient to support the ongoing costs of operating these mines.
The installed processing infrastructure at Otjihase is currently capable of treating much greater quantities of copper ore than the two underground mines have been producing for the last five years.
The identified mineral resources at Otjihase and Matchless are considered by the Company to be sufficient to support viable plans for increased production volumes when copper prices improve and sufficient mine development work is completed.
As a result, the Company has decided to convert Central Operations to Project Development status.
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