25th Nov 2015 08:17
LONDON (Alliance News) - Weatherly International PLC Wednesday said that its largest shareholder and lender has agreed to defer a loan instalment repayment, as its Tschudi mine in Namibia is not generating enough operating cash to service its debt facility.
The company said that it produced 1,361 tonnes of copper cathode at Tschudi in October, at a costs of USD4,361. It expects to achieve nameplate production levels of 1,400 tonnes of copper cathode by the end of the quarter, in line with its previous announcements, and expects costs to be lower as a result of this.
However, it warned that in light of the current copper price being at a six year low, the Tschudi mine is not "making sufficient operating cash for the service of its debt facility."
Weatherly is due to make its first repayment on Tranche B of its loan to Orion Mine Finance Master Fund I LP at the end of this month; however Orion has agreed to defer the payment of this instalment, and has begun talks on amended arrangements.
Shares in Weatherly were down 30% at 0.403 pence Wednesday morning, the worst performer in the AIM All-Share.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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