15th Oct 2013 08:04
LONDON (Alliance News) - Weatherly International PLC Tuesday said it swung to a pretax loss in its full-year as lower commodity prices and higher administrative expenses hit the company.
The AIM-listed mining company, with operations in Namibia posted a pretax loss of USD425,000 for the twelve months ended June 30 compared to a pretax profit of USD14.2 million in the previous year.
The company said its sales fell 25% to USD35.7 million from USD47.6 million as the price of copper fell during the period.
Weatherly was also hit by higher administrative expenses of USD4.3 million, from USD3.8 million the previous year and the company made it clear that its previous year results benefited from one off disposal payments of USD4.1 million and the release of a credit payment of USD5.2 million.
Weatherly International said its copper production fell slightly to 5,182 tonnes over the year from 5,204 tonnes as ore tonnes treated significantly fell in each quarter through the year from 87,645 tonnes in the quarter to September 30 2012 to 64,872 tonnes in the quarter ended June 30.
The company also managed to settle an insurance claim related to flooding of one of its mines and benefited from a USD2.0 million settlement of its claim for a licence to develop the Tambao mine in Burkina Faso.
It also reported that the development of its Tschudi site, which should provide a total of 17,000 tonnes of copper annually over a life of 11 years, is of upmost concern to the company. Weatherly expects that first copper production will occur roughly 16 months after it draws down cash funding for the site.
Weatherly International shares were down 0.7% to 4.09 pence in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Weatherly International Plc