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UPDATE - Weatherly International says Tschudi on time and on budget as Central Ops meet guidance

Namibia-focused Weatherly International said its new copper project is on schedule and on budget as it revealed its existing operation met production guidance.
UPDATE - Weatherly International says Tschudi on time and on budget as Central Ops meet guidance

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Namibia-focused Weatherly International (LON:WTI) said its new copper project is on schedule and on budget as it revealed its existing operation met production guidance.

The much-anticipated Tschudi mine is now around 57% complete.

Output from Tschudi will augment production from the Central Operations, which delivered record results following the drive to improve productivity and reduce operating costs.

Fourth quarter production of 1,507 tonnes of copper in contained in concentrates was the the highest quarterly result since the mines were reopened in 2011.

Crucially the cash cost was US$5,710 a tonne, the lowest level in two years.

Chief executive Rod Webster said: "We are delighted that our production guidance in May has been met and we expect further improvements in the next quarter as primary stoping in the Hoffnung Fault West area starts to have an impact."

Weatherly said it has paid off U$550,000 of the working capital loan owed to Orion Mine Finance, which now stands at US$1.38mln.

In June Logiman, the engineering company constructing the Tschudi plant, subscribed for £1.7mln-worth shares in Weatherly.

The shares, up 18% in the last three months, added 15% on Tuesday to change hands for 3.3p each.

“While costs matched our forecasts per contained copper tonne (assisted by the higher-grade ore processed), we anticipate even lower costs going forward as production ramps up and cost cutting measures are optimised,” City broker RFC Ambrian.

It said the production numbers indicate that Weatherly is “well positioned” to achieve its targeted 7,000 tonnes per year production run rate at the Central Operations thanks to its improved mining method, better labour management and the opening up of new mining areas.

At Tschudi RFC calculates a further US$11.7mln was spent with a further US$33.6mln of its facility undrawn. “This was a good quarter that bodes well for those ahead,” the broker added.

Webster told investors Tuesday: “This is a great vote of confidence in both the management and the project itself, especially given the fact that Logiman bought the shares at a significant premium to the market." 

The shares, up 18% in the last three months, added 15% on Tuesday to change hands for 3.3p each.

“While costs matched our forecasts per contained copper tonne (assisted by the higher-grade ore processed), we anticipate even lower costs going forward as production ramps up and cost cutting measures are optimised,” City broker RFC Ambrian.

It said the production numbers indicate that Weatherly is “well positioned” to achieve its targeted 7,000 tonnes per year production run rate at the Central Operations thanks to its improved mining method, better labour management and the opening up of new mining areas.

At Tschudi RFC calculates a further US$11.7mln was spent with a further US$33.6mln of its facility undrawn. “This was a good quarter that bodes well for those ahead,” the broker added.



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