Shares of Weatherly International (LON:WTI) advanced 9% on Tuesday after the copper miner said it saw significant progress despite challenging market conditions in its first half as its Tschudi mine in Namibia exceeded guidance in the first full quarter of production.
Production from Tschudi exceeded the company's guidance of 10,400 tonnes of copper cathode by 2% to reach 10,659 tonnes produced in the full year 2015, Weatherly said.
The market's backdrop was challenging. The price for copper remained under pressure falling from $5,720/tonne at the beginning of the financial year to $4,701/tonne at 31 December 2015. While this put pressure on revenues, the depreciation of the rand against the US dollar from 12.2 to 15.5 reduced Weatherly's costs in US dollar terms.
Interim results to December 31 showed the company reported a pretax loss of USD11.4 million, widened from a pretax loss of USD5.2 million a year before, as revenue fell to USD15.9 million from USD22.5 million.
"Operations at the Tschudi mine have exceeded the Company's guidance and the first full quarter of commercial production, achieved at the end of last year, was a major milestone," said Craig Thomas, chief executive officer of Weatherly.
"In addition to this production success, Weatherly has also produced a resource, reserve and processing update that increases ore reserves, reduces life of mine C1 costs and identifies expansion opportunities," he added.
Weatherly shares closed up 9.1% in London on Tuesday, at £0.30.