Wti Oil Etc Discussion Threads

[sh1984] 17/1/2017 16:01

I think the update is due next week - 26th Jan, but it does state this is an estimated date.

hxxp://weatherlyplc.com/investors/financial-calendar/

[billthebank] 17/1/2017 11:48

I have absolutely no doubt re the loan repayment now Copper now $5880 and our costs of extraction are close to $3800. Just wait and your time will come. As for long term holders I thought a number of them were looking for closer to 8p!!! I know one who bought in at 6 and then topped up at around 13p but of course he may have averaged down when in the 0.3 area I guess. Still think there is bags of potential here and with RNS due end of the week I am surprised that the share hasnt started moving upwards more aggresively?

[leedskier] 17/1/2017 08:07

That would only be a market capital of some £14 million!

[stav5001] 17/1/2017 07:31

1.4P is my target.

I wish and so do many other LTS here.

[leedskier] 17/1/2017 07:03

It would be excellent news if that is the case.

[sh1984] 16/1/2017 18:50

As of 30 June: WTI had $5.7m in cash, $10m in inventory and $6.1m in VAT payments due. If they Deliver nameplate Q4 prod this week, why can't they pay the loans?

[leedskier] 16/1/2017 18:05

I would have thought it highly unlikely that WTI can pay off the current outstanding arrears of $8 million plus the first quarterly payment of $6.25 million under the loan scheme due at the end of February.

Not sure how much cash the Company had at the end of December, but the total sum due at the end of February is:

2 x $4 million + $6.25 million.

Going forward once the $8 million is cleared and only the quarterly payments are due and Orion no longer has the right to buy any Copper at $5K, things should get much more comfortable assuming the price is above $5500 a MT.

[sh1984] 16/1/2017 12:51

This will be 2p+ come end Feb if WTI pay off the loans.

[blueball] 16/1/2017 11:58

Pressure is building up again 1.4p is my target.

[billthebank] 16/1/2017 11:01

leedskier I agree and pressure is building again on the price of copper and it is clear that WTI tends to follow!! Not long before we breach 1p?? How long before copper is $6000/tonne?

[leedskier] 16/1/2017 10:45

I am no chartist, but I think that the indications are that this could break-out and move significantly higher buoyed by higher copper prices.

[leedskier] 15/1/2017 22:34

LMCADS03:COM
3Mo Copper (LME)
USD/MT 5,909.00

[pedro57] 14/1/2017 00:15

Anybody else thinking of buying more before the quarterly production update next week? It is hard to see how it can be anything but a major positive? I am surprised WTI has not resumed its ascent with what copper has done this week.

[billthebank] 13/1/2017 19:40

Guys Copper on the march again!!! Not really surprising Orion are happy as only payng $5000/tonne

[jdwag] 13/1/2017 18:57

I think it will be Option C that you state, however, beyond feasibility and some training works I doubt much will be touched on Otjihase in 2017, as you say they need to get on with the business of getting Tschudi up and running at 20k tonnes per annum and paying down debt substantially before they start worrying about Otjihase!

I also think Orion are in complete support on Otjihase! When you look at the November Presentation what strikes you is that the technical knowledge surround Otjihase is already in-situ with a General Manager, etc already in place. Considering the zeal WTI has gone after cost cutting and cutting dead weight non-exec BoD members, moving out of expensive London digs, etc I doubt Orion would allow a Otjihase operational structure to be in place if they didn't support urging forward (be it slowly) I take the view Orion take the long view here to their Shareholding, hence having monumental patience with WTI despite monumental historic screw ups.

Just my take, may be wrong.

JD

[jp2011] 13/1/2017 15:09

This could be a great opportunity but for two issues;

Working capital required to support 2,500 tonnes. Production costs are $10m but if they manage the cash cycle then working capital will be $2-5m?

For sake of argument they need $3m for working capital, where does this come from;
a) potentially shareholders but you need a decent share price first or we all get diluted.
b) Orion lends more money - possible but unlikely (Libor +9% is hardly attractive)or
c) out of retained earnings, problem is WTI are so far underwater on the repayments that Orion will have a sweep on any excess cash. The next repayment date is Feb and its likely to be missed.

Orion are making money from their $5000/t call option and without their support WTI would be toast. What's really required is a sustained period at $6,000/t from May17 onwards (the call option finishes in May) and hopefully WTI won't have too much hedging in place.

[billthebank] 13/1/2017 14:48

Looking at the graph in the investors presentation November 2016 it appears that they do not anticipate 20k tonnes until 2019 Of course it is possible though that that slide could be incorrect as $200k does not seem like a lot to pay out to increase tonnage of copper by 3000 tonnes. Only an extra gross revenue of circa $9M

[billthebank] 13/1/2017 14:44

Shapido You are right

In December 2015, the Company announced that the opportunity to expand Tschudi production capacity to 20ktpa would require expenditure of US$1.2M. In the same update, the Company reported that life-of-mine C1 cost estimates had improved to US$1.75/lb for production of 17ktpa, with expected modest improvements in Life of Mine C1 unit cost to US$1.72/lb under the 20ktpa scenario.



Subsequent optimisation of the operating parameters used within the Solvent Extraction and Electro-Winning plants have now reduced this capital estimate to US$0.2M. Focus for the expansion opportunity evaluation has now shifted to evaluating mining, pad development, stacking, and leach scheduling paths to sustain such a potential expansion and quantifying potential operating cost savings from the expansion.

[shapido] 13/1/2017 12:18

My reading was that further optimisation has refused it to 200k, or did I read that wrong

[billthebank] 13/1/2017 11:48

Probab;ly wont happen till the debt is properly managed as again from memory would cost £1.2M capital outlay?

[shapido] 13/1/2017 11:26

We could also increase capacity to 20ktpa. Subsequent optimisation of the operating parameters used within the Solvent Extraction and Electro-Winning plants have now reduced this capital estimate to US$0.2MCould be the start of good things for WTI.