-- adds broker comment--
Shares in Weatherly International (LON:WTI) will be suspended until metallurgical problems at its copper mine development at Tschudi, Namibia are sorted out, it said today.
While it produced the first copper cathode from Tschudi on schedule yesterday, there were a number of issues with recoveries from the heap leach pads.
Further investigative work is needed to evaluate the results and how they will affect the performance of the project, said the miner.
The talks will involve Orion Mine Finance , which has put up US$91mln to fund the building of Tschudi and has a secured loan over the project.
Orion’s consent will be required for any action, said Weatherly, and as such the company's current financial position is subject to “significant uncertainty”.
Shares were suspended on AIM yesterday.
House broker RFC Ambrian said it was a disappointing update and pending further clarification it is currently unclear what the source, extent and consequences of the issues are at Tschudi.
Causes for the recovery problems may low recoveries as a result of poor percolation of acid through the heaps or metallurgy, higher-than-planned acid consumption or a low reconciliation of mined grades against planned grades, said the broker.
At the end of January, Weatherly had said it was hoping to get Tschudi into production ahead of schedule.