Interim Results

Weatherly International Plc

("Weatherly" or "the Company")

Interim Results for the Period from 1 July 2014 to 31 December 2014

Weatherly International Plc announces its interim results for period from 1 July 2014 to 31 December 2014.

Enquiries

Rod Webster Chief Executive Officer Weatherly International Plc +44(0) 207 917 2989

Kevin Ellis CFO/Company Secretary

Samantha Harrison RFC Ambrian +44(0) 203 440 6800

Further information is available on the Company's website: www.weatherlyplc.com

19 March 2015

Weatherly International Plc (AIM: WTI) today announces its unaudited interim results for the six months ended December 2014.

Highlights for Period

· Revenue of US$22.4 million for the period, compared to US$19.3 million for the same period in 2013. An increase of 16 per cent.

· Gross loss for the period US$408,000 leading to an operating loss for the half year of US$4.0 million.

· The Company, as of 31 December 2014, had cash reserves of approximately US$10.8 million, excluding US$ 3.7m of cash held relating to draw downs under the Orion Mine Finance loan.

· The Company commenced mining and stockpiling ore at Tschudi.

· The final part of tranche A of the working capital loan from Orion had been repaid amounting to US$0.83 million.

· The Company drew down US$73 million of its US$80 million facility with Orion Mine Finance (Master) Fund 1 LP.

· Capital raisings included US$2.6m from new investor, Polo Resources Ltd, and US$2.3m from Logiman for a total of US$7.3m.

· Appointment of finnCap as joint brokers to the Company, together with RFC Ambrian.

Chairman's and Chief Executive's Statement

Although at the time of writing, Weatherly shares are suspended from trading on AIM (at the Company's request) it is worthwhile reflecting on the significant progress we made in the period.

At the Tschudi project large sections of the plant were commissioned before Christmas, and it subsequently produced its first copper in February 2015, well ahead of the original schedule.

We are delighted to have Polo as a cornerstone investor which is a welcome vote of confidence not only in the Tschudi project but in Weatherly. Logiman, the contractor for the plant construction at Tschudi, also followed their previous subscription in the open offer.

Events Subsequent to the Statement of Financial Position Date

Weatherly's Tschudi mine produced its first copper cathode on February 16, well ahead of schedule. However, the Company's initial copper recoveries were lower than anticipated due to slower leach rates and also higher than anticipated acid consumption. The uppermost part of the Tschudi deposit comprises a leached cap containing significant carbonate and clay contents as well as partly refractory copper oxides, which was recognised to be difficult to process. Previous work had indicated that this material was confined to the uppermost 12m of the deposit and it was to be stockpiled for later blending and processing.

Mining of the deposit and evaluation of results from the recent grade control drilling shows that this material extends to depths of 25-30m. Mining in some of the pits is now below this depth and there has been a significant increase in both leaching rates and recoveries as a result. Some of the shallow, more refractory ore is now being stockpiled for later treatment with the rest being blended with deeper material to improve recoveries and leach rates. Additionally, mining is being accelerated to access the deeper levels earlier than originally scheduled.

The Company has revised its short-term copper production schedule to take into account the impact of the lower initial production and has discussed this with Orion Mine Finance. It is currently anticipated that as a consequence Tschudi will reach its target run rate in Q4, 2015. Further work is underway by the Company to validate the assumptions behind the revised copper production schedule.

The Company has suspended its shares until it is in a position to quantify the full financial effect of the above and can confirm it has sufficient financial resources to meet its short term needs and loan repayments.

The impact of the above and other matters that affect the Group's going concern are covered in note 1(c).

For further information please contact:

Weatherly International Plc +44 (0) 20 7917 2989

Rod Webster, CEO

Kevin Ellis, CFO & Company Secretary

RFC Ambrian Limited +44 (0) 20 3440 6800

(Nominated Adviser & Broker) Samantha Harrison / John van Eeghen

finnCap +44 (0) 20 7220 0514

(Joint Broker) Joanna Weaving

Blytheweigh +44 (0) 20 7138 3204

(Financial PR) Tim Blythe / Halimah Hussain

About Weatherly

Weatherly is an AIM listed copper mining company operating in Namibia in southern Africa. Its principal assets are two underground copper mines, Otjihase and Matchless, and a larger open pit called Tschudi which produced its first copper in February this year, well ahead of its original schedule. 

These assets will enable Weatherly to achieve its medium term goal of establishing a mining business capable of sustaining approximately 25,000 tonnes per annum of copper production.

The Company also has a 25% stake in the AIM listed company, China Africa Resources plc (CAF), which is developing a lead/zinc mine called Berg Aukas also in Namibia.

Condensed consolidated income statement

for the period from 1 July to 31 December 2014

Condensed consolidated statement of comprehensive income

for the period from 1 July to 31 December 2014

Condensed consolidated statement of financial position

as at 31 December 2014

Condensed consolidated statement of changes in equity

for the period from 1 July to 31 December 2014

Condensed consolidated cash flow statement

for the period from 1 July to 31 December 2014

Notes to the condensed consolidated financial statements

for the period 1 July to 31 December 2014

1. a. Basis of preparation

These interim condensed consolidated financial statements are for the six months ended 31 December 2014. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2014. The information included in these interim condensed consolidated financial statements in respect of the year ended 30 June 2014 does not constitute all the information required for annual statutory accounts at that date.

These financial statements have been prepared under the historical cost convention, except for revaluation of certain properties and financial instruments.

The annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. These condensed consolidated interim financial statements (the interim financial statements) have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 30 June 2014.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.

b. Nature of operations and general information

Weatherly International plc and its subsidiaries' ("the group") principal activities include the mining and sale of copper concentrate.

Weatherly International plc is the group's ultimate parent company. It is incorporated and domiciled in the United Kingdom. The address of Weatherly International plc's registered office, which is also its principal place of business, is 180 Piccadilly, London W1J 9HF. The company's shares are listed on the Alternative Investment Market of the London Stock Exchange.

Weatherly International's consolidated interim financial statements are presented in United States dollars (US$), which is also the functional currency of the parent company.

These consolidated condensed interim financial statements have been approved for issue by the Board of Directors on 19 March 2015.

The financial information for the period ended 31 December 2014 set out in this interim report does not constitute statutory accounts as defined by the Companies Act 2006. The Group's statutory financial statements for the year ended 30 June 2014 have been filed with the Registrar of Companies.

c. Going Concern

Weatherly's future financial performance is contingent on revenues received from the sale of copper and the Company is exposed to fluctuations in the copper price.

At Central Operations, low copper prices, combined with poor production in January and February, resulted in losses, although these were covered by the Company's available working capital. At the targeted run rate of approximately 500 tonnes of copper per month, Central Operations is expected to be cash flow neutral assuming no further deterioration in copper prices from current prices (approx.US$5,800/tonne). The Company continues to closely monitor the situation.

Orion Mine Finance has provided the final cash call of US$4m in respect of Tranche B of the Tschudi Loan (total drawdown under Tranche B is US$80m). Weatherly has not drawn down on Tranche C, which is a project overrun facility of US$8m which requires the Company to contribute on a dollar for dollar basis. The Company's current cash reserves, which as at 1 March 2015 were US$8.7m (excluding drawdowns under the Orion Mine Finance Loan), are sufficient to allow full utilisation of this facility and the Company's working capital position is reliant on Tranche C (or equivalent facilities) being made available to it as the Tschudi project ramps up to full production. However, these facilities may not be enough to meet the future working capital requirements should copper prices, or other operational factors affecting the Company's financial position deteriorate. For this reason continuing discussions with Orion Mine Finance may lead to subsequent amendments to the current loan arrangements. As a consequence, the Company's financial position remains uncertain and the trading in the Company's shares on AIM remain suspended pending further announcements.

2. Segmental reporting

Business segments

In identifying its operating segments, management generally follows the physical location of its mines.

The activities undertaken by the Central Operations segment include the sale of extracted copper from Otjihase and Matchless mines. The revenues of Otjihase and Matchless are indistinguishable as the ore coming from both mines passes through the same concentrator and the two mines are viewed as one operating unit. The activities undertaken by the Tschudi segment included the construction and acquisition of property plant and equipment to start up the Tschudi open pit mine.

Each of these operating segments is managed separately as each of these service lines requires different technologies and other resources as well as marketing approaches.

The measurement policies the group uses for segment reporting under IFRS 8 are the same as those used in its financial statements.

The group's operations are located in Namibia and the UK. The operating segments are located in Namibia, while the corporate function is carried out in London.

Segment information about these businesses is presented below.

Notes to the consolidated financial statements

for the period from 1 July to 31 December 2014