Weatherly International PLC Quarterly Operations and Production Update (3952U)

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RNS Number : 3952U

Weatherly International PLC

24 October 2017

24(th) 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   Quarter   Quarter   Quarter 
                         ended     ended     ended     ended 
                         Dec-16    Mar-17    Jun-17    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 28(th) 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                                       [phone] 

Craig Thomas, Chief Executive Officer

Kevin Ellis, CFO and Company Secretary

   RFC Ambrian Limited                                                     [phone] 

(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.

This information is provided by RNS

The company news service from the London Stock Exchange

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October 24, 2017 02:00 ET (06:00 GMT)