21st Jan 2015 09:14
LONDON (Alliance News) - Weatherly International PLC saw shares plummet on Wednesday after it said production fell quarter on quarter at the end of 2014 as costs rose, prompting the company to review its operations as they are currently "unsustainable".
Weatherly shares were down 24.6% to 1.66 pence per share on Wednesday morning.
During the second quarter ended December 31, the company treated 75,512 tonnes of ore at a grade of 1.75% copper, recovering 91.94% to produce 5,146 tonnes of copper concentrate and 1,213 tonnes of contained copper.
Compared to the first quarter ended September 30, Weatherly treated 16% less ore at a slightly lower grade, recovering less and therefore producing less copper.
The company's central operations, which includes the Matchless, Otjihase and Tschudi mines, booked a 17% reduction in contained copper production of 1,213 tonnes during the second quarter compared to the immediately previous quarter when it produced 1,462 tonnes.
The C1 cash cost for the quarter reached USD7,209 per tonne of copper, a significant increase from the USD5,844 recorded in the first quarter. This was caused by the lower production.
"At current production levels and copper prices, Central Operations are unsustainable and the board will review the situation going forward," said Chief Executive Rob Webster.
The company also said it paid off USD830,000 of the working capital loan provided by Orion Mine Finance during the second quarter, which fully pays off the facility. This leaves the company with a cash position of around USD10.8 million at the end of the quarter, excluding the available funds in the Orion finance facility.
By Joshua Warner; [email protected]; @JoshAlliance
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