TIDMWTI
RNS Number : 8977Y
Weatherly International PLC
14 September 2015
14 September 2015
Weatherly International plc
("Weatherly" or "the Company")
Operations Update
Tschudi production guidance increased
and
Central Operations converted to Project Development
Weatherly International plc (AIM: WTI) announces that, whilst
maintaining its focus on the ramp-up at its Tschudi mine where
production is exceeding expectations, it will convert its Otjihase
and Matchless mines ("Central Operations") to a project development
status as the Company prepares them for future production
expansion.
Summary
-- Tschudi production guidance for the current quarter is
upgraded by 15% from 1,000 to 1,150 tonnes of copper metal per
month.
-- Otjihase and Matchless will convert to a project development
status in order to prepare the mines for future production of
larger volumes of copper concentrate at lower unit costs, when
market conditions improve.
-- Production of copper concentrate at Central Operations is
subsequently suspended during this low copper price
environment.
Craig Thomas, CEO of Weatherly, commented:
"We maintain our focus on Tschudi and the ramp up has progressed
well ahead of schedule. I am pleased to confirm our previous
commitment that, before year end, Weatherly will be operating a new
17,000 tonnes of copper metal per annum open pit copper mine in the
best mining country in Africa, producing some of the highest
quality copper cathode in the world.
"Due to 2015 copper prices reaching the lowest levels in six
years, copper production at Central Operations is no longer
commercially viable. As a consequence, management has had to
implement measures which, in the short term, reduce costs but, in
the longer term, look to create a viable future."
Tschudi
In July the Company indicated production guidance for the
current quarter of, on average, 1,000 tonnes per month (70% of
design capacity) of copper cathode for the current September
Quarter. The Company now advises that it expects production will
exceed these levels by approximately 15% to reach 1,150 tonnes per
month, on average, or approximately 80% of design capacity, for the
current quarter.
Central Operations
As a consequence of the marked decline in world copper prices
from January 2015, copper production levels at Central Operations
in CY2015 have been insufficient to support the ongoing costs of
operating these mines.
The installed processing infrastructure at Otjihase is currently
capable of treating much greater quantities of copper ore than the
two underground mines have been producing for the last five
years.
The identified mineral resources at Otjihase and Matchless are
considered by the Company to be sufficient to support viable plans
for increased production volumes when copper prices improve and
sufficient mine development work is completed.
As a result, the Company has decided to convert Central
Operations to Project Development status.
Doing so will involve suspending mining of copper ore and
production of copper concentrate, while developing the plan to
prepare for a resumption of production at expanded volumes when
copper prices improve. Key activities during the project
development phase will include maintaining the mining and
processing infrastructure in good condition ready for the
resumption of operations, and then investing in upgrading the
definition of mineral resources at Otjihase and Matchless mines
plus creating new access tunnels into areas planned for future
underground mining.
Furthermore, the Company continues to evaluate the opportunities
in the region surrounding Otjihase, which is known to host several
copper deposits as well as having exploration potential. The
regional endowment may present additional potential for further
expansion of production, and Weatherly is well positioned to take
advantage of any future opportunities due to synergies provided by
its Otjihase Concentrator to materially lower unit costs for
production. The Company believes that an enlarged business unit
based around the Otjihase and Matchless assets would have
significantly enhanced capability for weathering any future
downturns in the commodity price cycle.
For further information please contact:
Weatherly International plc +44 (0) 20 7936 9910
Craig Thomas, Chief Executive Officer
Kevin Ellis, CFO and Company Secretary
RFC Ambrian Limited +44 (0) 20 3440 6800
(Nominated Adviser & Broker)
Samantha Harrison / John van Eeghen
Finncap +44 (0) 20 7220 0500
(Joint Broker)
Christopher Raggett
Blytheweigh +44 (0) 20 7138 3204
(Financial PR) Tim Blythe / Camilla Horsfall / Megan Ray
About Weatherly
Weatherly is an AIM listed copper mining company operating in
Namibia in southern Africa. Its principal assets are one open pit
copper mine called Tschudi and two underground copper mines called
Otjihase and Matchless.
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 (AIM: CAF), which is developing a
lead/zinc mine called Berg Aukas, also in Namibia.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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