Last checked at 24 Oct 2017 07:00
24th October 2017
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 30 September 2017.
Summary
· Tschudi cathode production improved by 21% quarter on quarter to 4,105 tonnes, which is 3% below nameplate over the quarter
· Tschudi C1 costs reduced by 15% to US$5,402 per tonne
· Nameplate production levels were re-attained by quarter end
Tschudi Production Performance
Production results for the quarter ended 30 September 2017
Quarter ended Dec-16 | Quarter ended Mar-17 | Quarter ended Jun-17 | Quarter ended Sep-17 | |
Total (Ore + Waste) Mined (000 tonnes) | 5,546 | 5,117 | 6,051 | 6,314 |
Ore Tonnes stacked (000 tonnes) | 702 | 563 | 726 | 666 |
Ore Stacked grade (per cent) | 0.88 | 0.86 | 0.99 | 0.78 |
Copper Cathode Produced (tonnes) | 4,496 | 3,236 | 3,386 | 4,105 |
C1 Cost (US$/t) | 4,222 | 5,907 | 6,344 | 5,402 |
Cathode production levels improved through the quarter, leading to a reduction in C1 unit costs of production. Nameplate production levels were re-attained by the end of the quarter, and are expected to be maintained going forward.
The Company continues to experience lower leach rates than were anticipated in the BFS and continues to compensate for this by exposing ore faster in the pit and stacking higher volumes of copper metal in ore, which together result in a higher C1 cost in the short to medium term. The Company continues to extend the heap leach pad area to provide additional time for the leaching of copper and has now completed the construction of four new leach pads. Bulk earthworks and clay liners for the final remaining three pads are also complete. Investigations continue into how leach rates can be improved under modified operating conditions with the assistance of the independent consultant mentioned in the operational update announcement of 28th July 2017. However it is expected to take to the end of the financial year before any firm conclusions can be drawn, and further updates will be provided in due course.
Open pit groundwater inflows continue to increase as pit mining proceeds to deeper elevations, but the flow rates are being managed adequately to ensure a reliable supply of ore for stacking.
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 one operating open pit copper mine called Tschudi and two underground copper projects called Otjihase and Matchless.