Last checked at 6 Apr 2017 07:00
6th April 2017
Weatherly International plc
("Weatherly" or "the Company")
Tschudi Production Update
Weatherly International plc (AIM: WTI) provides the following update for copper cathode production during the March 2017 quarter.
Summary
· Reduced production for the March 2017 quarter with 3,236 tonnes produced, 24% below nameplate.
· Slower than anticipated leach rates for mixed oxide / sulphide ore stacked during latter parts of 2016 and early 2017 were achieved, reducing the amount of copper harvested.
· Above average seasonal rains during the quarter prevented short-term acceleration of mining and stacking to compensate.
· Revised production guidance of 14,500 to 15,000 tonnes of cathode for the financial year ending June 2017.
Tschudi Production Update
As the open pits have progressed deeper, the proportion of mixed oxide / sulphide ore mined has increased as expected. This mixed ore was expected to leach more slowly than oxide ore, and the mining and stacking schedules were designed to accommodate this.
Slower than expected recoveries from ore stacked in late 2016 resulted in a need to accelerate stacking rates to compensate, but unfortunately this coincided with above average rainfall which caused operational delays that were typically 2 to 3 times longer than those experienced in previous years' rainy seasons.
As a result, Tschudi was unable to further accelerate stacking rates to compensate and instead of producing at above nameplate rates to recover more of the shortfall from the September 2016 Quarter as scheduled, production rates fell to 24% below nameplate at 3,236 tonnes, with the greatest impact felt in March.
As rain delays reduced through March the rate of stacking contained copper metal improved notably and these improved rates of stacking copper are expected to be sustained going forward. The rate of leaching is expected to recover during the June quarter and full year production to June 2017 is now forecast to be 14,500 to 15,000 tonnes.
As an additional response to the slower leaching of mixed ore, a greater pad area is required to maximise recovery of copper prior to over-stacking and therefore the construction of the stage 2 heap leach pad extension commenced in March.
Mining schedules will continue to ensure sufficient stockpiled ore is available even when future rainy seasons are above average.
Further information will be provided with the regular quarterly operations and production update, planned for publication on 27 April 2017.
Weatherly has previously advised that if copper prices remain at current levels it is unlikely that the Company and its subsidiaries will generate sufficient surplus cash to meet all loan repayments when due. This remains the case and 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: Kim Eckhof
Blytheweigh +44 (0) 20 7138 3204
(Financial PR) Tim Blythe / Camilla Horsfall / Nick Elwes
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.
These assets will enable Weatherly to achieve its medium term goal of establishing a mining business capable of sustaining approximately 30,000 tonnes per annum of copper production.