WEATHERLY INTERNATIONAL PLC
7 October 2014
Weatherly International Plc
("Weatherly" or "the Company")
Quarterly Operations and Production Update
Weatherly International Plc (AIM: WTI) announces its update for the first quarter of the financial year ending 30 June 2015.
Highlights
Production results for the first quarter of the financial year 2015
1st Quarter FY2014 | 2nd Quarter FY2014 | 3rd Quarter FY2014 | 4th Quarter FY2014 | 1St Quarter FY2015 | |
Ore Treated (t) | 75,060 | 75,281 | 61,309 | 78,431 | 89,654 |
Grade (%) | 1.72 | 1.87 | 1.86 | 2.07 | 1.76 |
Recovery (%) | 93.02 | 93.10 | 93.36 | 93.0 | 92.5 |
Copper concentrate (t) | 5,118 | 5,330 | 4,424 | 6,122 | 6,028 |
Copper contained (t) | 1,201 | 1,311 | 1,067 | 1,507 | 1,462 |
· Central Operations 1st quarter (FY2015) production of 1462t of copper, compared to 1,507 tonnes in the previous quarter.
· Central Operations cash cost (C1) for the quarter of US$5,844/t (US$2.65 /lb) copper, up from USD 5,710/t (USD 2.59/lb) copper.
· Tschudi Project construction remains on schedule and budget, approximately 80% complete.
· Tschudi pit first ore benches being drilled for grade control.
· Central Operations continues to perform well following changes, to improve productivity and reduce costs.
· Working capital loan to Orion Mine Finance reduced to US$830k.
Rod Webster CEO of Weatherly commented:
"I am pleased with our first quarter results which demonstrate that Tschudi is on track to produce first copper in the second quarter of the calendar year 2015, with operations to begin in the new year.
"Progress in lowering production costs at Central Operations is continuing and I expect further reductions in costs going forward.
"I am confident that the coming months will bring Weatherly closer to realising its full potential of being a successful Namibian copper producer capable of achieving our goal of 25,000 tonnes per annum."
Tschudi
Construction
The project continues to make excellent progress and, as at the 30 Sept 2014, was approximately 80% complete. The Company has drawn down 79% of its loan from Orion Mine Finance which covers the cost of project through to first copper.
All piping and instrumentation diagrams were completed during the period. Administration and plant offices are now operational and the erection of the SX-EW plant is proceeding well. Mining of silica to provide the drainage layer for the heap leach pads commenced from a nearby quarry which had been awaiting environmental clearance. The crushed silica will be distributed using a new mobile stacker which was also commissioned during the quarter.
Senior appointments within the processing group have been made and a new commissioning schedule has been completed to ensure operational readiness by the end of the next quarter.
Mining
The mining contractor, Basil Read, mobilised during the previous quarter and waste stripping commenced at the beginning of the quarter. By the end of the quarter the first ore was exposed in the initial pits. Once mined, ore will be classified according to acid consumption and stockpiled awaiting commissioning of the crushing plant. The bulk of the waste removed is being used to form the base of the heap leach pads and the ore stockpile area above the primary crusher. In total, 251,450 bcm of waste and 1,920 bcm of mineralised material was mined during the period.
Central Operations
Mining
The changes made and announced last quarter continue to deliver the expected results. Tonnes mined overall increased by 14 % compared with the previous quarter, although lower grades from some of the development areas offset this, resulting in copper for the quarter being slightly less than the previous quarter at 1,462 tonnes. This is now the second quarter where production has continued at an annualised rate approaching 6,000 copper tonnes, and also the highest half year recorded since the mines were reopened in 2010.
The pillar retreat programme at Otjihase continues with higher ore recovery than initially expected. As a result, development of the two new primary mining areas has slowed for the time being, but is expected to pick up again in the next quarter.
As part of the mobile fleet upgrade, two new Atlas Copco 1530 scoops were commissioned having an immediate effect on productivity. Similarly, a new Atlas Copco 282 drill jumbo was mobilised to site for trial with positive early results. A number of expatriate drill trainers have also arrived on site as part of the program to upgrade the skills of operators using the new equipment.
Commercial
During the quarter, the Company produced 1462t of copper at a cost of US$5,700/t. The company delivered 6,906 tonnes of concentrate (1,497 tonnes of copper) to metal trader Louis Dreyfus at a weighted average price of US$6,989/t copper (US$ 3.17/lb).
As at 30 Sep 2014, The Company paid off US$0.55 million of the working capital loan to Orion Mine Finance reducing the outstanding loan to US$830,000. This left the company with cash reserves, excluding drawdowns under the Orion loan, of approximately US$5.4 million.
For further information please contact:
Weatherly International Plc +44 (0) 20 7917 2989
Rod Webster, CEO
Kevin Ellis, CFO & Company Secretary
RFC Ambrian Limited +44 (0) 20 3440 6800
(Nominated Adviser & Broker)
Samantha Harrison
Finncap +44(0)2072200514
(Joint Broker)
Joanna Weaving
Blytheweigh +44(0)2071383204
(Financial PR)
Tim Blythe / Halimah Hussain
About Weatherly
Weatherly is an AIM listed copper mining company operating in Namibia in southern Africa. Its principal assets are two underground copper mines, Otjihase and Matchless , and a larger open pit development called Tschudi scheduled to come on stream in the second quarter of calendar year 2015.
These assets will enable Weatherly to achieve its medium term goal of establishing a mining business capable of sustaining approximately 25,000 tonnes per annum of copper production.
The Company also has a 25% stake in the AIM listed company, China Africa Resources Plc (CAF), which is developing a lead/zinc mine called Berg Aukas also in Namibia.
This information is provided by RNS
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