Weatherly International Plc Regulatory News (WTI)

22 Jan 2008 14:00

Weatherly International PLC22 January 2008 Weatherly International plc (the 'Company') Weatherly AGM Results and Production Update on Kombat Weatherly International plc, the AIM listed integrated base metals producer withcopper mining and smelting operations in Namibia, held its Annual GeneralMeeting (AGM) today. The Company is pleased to announce that all resolutions put to the AGM werepassed by the required majorities. At the AGM, Rod Webster, CEO, took the opportunity to provide an update on theCompany's Namibian operations, and in particular the activities of the Kombatdivision. On 6 December 2007, Weatherly announced that dewatering at Kombat hadsuffered a series of electricity outages in quick succession which impacted onthe progress of the dewatering and raised the risk and cost profile of theoperation. This resulted in the dewatering campaign below the water table beingsuspended. An extensive review of the Company's operations in the Otavi Valley has now beenconducted and Weatherly has concluded that only an integrated and co-ordinatedpower and water plan for the Kombat region will ensure a long-term sustainablefuture for the Kombat mine. The Company is currently in discussions with theNamibian government, Nampower and Namwater to consider regional power and watersupplies and hopes to successfully conclude negotiations in the near future. TheCompany will consider the future reopening of Kombat in this context. Whilst these negotiations continue, Weatherly is redeploying capital andmanpower resources in order to accelerate production at its other operations atTschudi and Matchless. These increases will come into effect progressively overthe coming months, with the benefits largely being realised in the second halfof this year. The suspension of operations at Kombat will likely reduce overall production forthe year by about 2,500 tonnes. The impact of this will be mitigated as Kombathad the highest cost base of Weatherly's mines. Weatherly's overall productioncosts are expected to be in line with the previous financial year. The first phase of the smelter expansion continues on target and withcommissioning of the new furnace underway this quarter. Weatherly also announces the appointment of Max Herbert as Company Secretary,following the retirement of John Norris. The Company takes this opportunity tothank Mr Norris for his dedicated service over the past three years. Speaking at the AGM, Wolf Martinick, Chairman, commented "We are starting offthe calendar year in a sound financial position with both our Namibiansubsidiaries profitable and with a long-term sustainable future. We expect tobuild on this position during the current year with growth from our minedevelopment projects and continued exploration." For further information contact: Max Herbert, Company Secretary Weatherly International +44 (0) 207 868 2232Paul Craven, Chief Financial Officer Jakob Kinde, Stephen Pickup Libertas Capital +44 (0) 207 569 9650 Alex Buck BuckBias +44 (0) 207 244 8053 +44 (0) 7932 740 452 This information is provided by RNS The company news service from the London Stock Exchange