Weatherly International Plc Regulatory News (WTI)

Weatherly International Plc

Quarterly Operations and Production Update

Weatherly International Plc ("Weatherly" or "the Company") is pleased to present its quarterly update for the final quarter of its 2011/12 fiscal year.

Highlights

·; Fourth quarter production was 5,605 tonnes of copper concentrate containing 1,292 tonnes of copper. 

·; The first of two new working areas at Otjihase mine has been opened up offering greater flexibility to the operation. The preparation of a second new working area continues with production targeted to commence in August.

·; Matchless mine maintains its solid performance.

·; A healthy margin continues to exist between weighted average sale price and cash costs.

·; The Tschudi feasibility progresses with important revisions. Delivery expected by the end of the year.

Rod Webster CEO of Weatherly commented:

"I am very pleased that the actions taken to address production issues at Otjihase are starting to take effect. Preparation work for the new mining areas is expected to be completed early in Q1 2012/13 ensuring that we have a solid foundation for longer term production. Despite some delays in the Tschudi feasibility study we are pleased with how the project is developing. Current revisions should drive down the capital and operating costs of the project making it more attractive to both financiers and shareholders."

Production

Production results for the quarter are set out in the table below.

Central Operations

Quarterly production from Central Operations was 5,605 tonnes of copper concentrate containing 1,292 tonnes of copper. Mined grades continue to improve compared with previous quarters.

The Matchless mine continues to perform well, maintaining targeted production levels during the period. At Otjihase, the first new working area, the Otjihase compartment, has been opened up successfully, relieving some of the pressure on the Kuruma compartment and providing greater flexibility overall.

Cash costs (C1) for the quarter were US$6,337/t copper with a year to date figure of US$5,554/t copper. The high costs reflect the additional cost of preparation work of the new working areas which has been fully expensed. These costs are expected to reduce and stabilise once production reaches targeted levels in the next quarter.

Tschudi Feasibility Study

Work continues on the Feasibility Study and the Company remains on track for first copper cathode production in 2014. As previously reported the Company is targeting a mine life of 15 years producing an average of 15kt per annum of copper cathode at an average cost of US$4,380 /t over the life of mine.

In light of the current financial markets, the Company has been investigating various opportunities that have presented themselves to reduce both the capital and operating costs of the project. In addition, new legislation in Namibia has resulted in all mining companies with mining licenses already granted needing to re-submit their Environmental Impact Assessment ("EIA") studies to the ministry of mines, which has also allowed the Company time to investigate these opportunities.

A new project team was therefore appointed in May tasked with investigating these opportunities for reducing the capital and operating costs in addition to improving copper recovery. This work has focussed on the:

·; Re-design of the pit and waste dumps to minimise waste handling

·; Re-design of the leach pads to minimise construction costs and the number of pad lifts

·; Soliciting of tenders for the contracting of both the mining and crushing activities

·; Soliciting of tenders for a lump sum bid for the build of the SX-EW plant, and

·; Optimising of ore blends and crush sizes to increase copper recovery and reduce leach times. Results to date have already demonstrated that this can be achieved.

While the additional work associated with these initiatives has extended the feasibility study timetable, it is expected to deliver a leaner, more attractive project, and the Company is expecting to announce the results of the feasibility study by the end of the year.

Commercial

During the quarter, the Company delivered 1,364 tonnes of copper contained in 5,534 tonnes of concentrate to metal trader Louis Dreyfus at a weighted average price of US$8,725/t copper. The Company continues with its policy of forward selling a proportion of its production up to 18 months ahead. 

As at 30 June 2012, the Company had:

(1) cash of US$8.5m equivalent 

(2) forward contracts over 3,550 tonnes copper at an average price of US$8,362/t.

The Company's next quarterly operations and production update will be issued in mid-Oct 2012.

About Weatherly

Weatherly is an AIM listed, copper focused mining company, the principal assets of which are located in Namibia. It currently has two producing copper mines (Otjihase and Matchless), and is progressing feasibility studies on projects which will enable Weatherly to achieve its medium term strategy of establishing a copper mining business capable of sustaining approximately 20,000tpa of copper at an average industry cost of production for at least ten years.

The Company also has a 25% stake in an AIM listed company, China Africa Resources Plc (CAF), which is currently focused on the development of the lead/zinc project at Berg Aukas in Northern Namibia.

For further information please contact:

Weatherly International Plc +44 (0) 20 7917 2989

Rod Webster, Chief Executive Officer

Dean Friday, Investor Relations

Canaccord Genuity Limited +44 (0) 20 7523 8350

John Prior, Sebastian Jones