Weatherly International upbeat on 2011
Weatherly International (LON:WTI) expects first sales revenues in March after restarting production “at an opportune time given the current climate of high copper, and precious metal prices”.
In its interim report the company said that it will now increase its exploration efforts to add to its JORC compliant inventory of 623,645 tonnes of copper.
The company was focused on returning to production during the period after placing its Namibian mines on care and maintenance in 2008. The decision was influenced by the recent surge in copper prices, which have jumped from US$2.80/lb in June 2010 to the current US$4.30/lb.
Concentrator and the mines have now been fully commissioned and are operational.
Forward sales have so far covered about 20% of the output from central operations for first 18 months of production at average weighted price of US$9,500 per tonne with first sales revenues expected next month.
The board has authorised forward selling of up to 35% of the company’s output from the mines for a period of 18 months.
The report was met with a positive response from investors as shares in Weatherly climbed 3% in early deals.
The business kept its losses to US$3.7 million in the six months to 31 December 2010, comprising operating losses before depreciation of US$3.2 million associated with the cost of maintaining and redeveloping the mines, depreciation charges of US$1.6 million, and profit of US$1.1 million from disposal of Kombat and other property.
Cash in the bank at 31 December stood at US$15 million following a share placement to raise £4.45 million (US$7 million) in November.
In its interim report the company said that it will now increase its exploration efforts to add to its JORC compliant inventory of 623,645 tonnes of copper.
The company was focused on returning to production during the period after placing its Namibian mines on care and maintenance in 2008. The decision was influenced by the recent surge in copper prices, which have jumped from US$2.80/lb in June 2010 to the current US$4.30/lb.
Concentrator and the mines have now been fully commissioned and are operational.
Forward sales have so far covered about 20% of the output from central operations for first 18 months of production at average weighted price of US$9,500 per tonne with first sales revenues expected next month.
The board has authorised forward selling of up to 35% of the company’s output from the mines for a period of 18 months.
The report was met with a positive response from investors as shares in Weatherly climbed 3% in early deals.
The business kept its losses to US$3.7 million in the six months to 31 December 2010, comprising operating losses before depreciation of US$3.2 million associated with the cost of maintaining and redeveloping the mines, depreciation charges of US$1.6 million, and profit of US$1.1 million from disposal of Kombat and other property.
Cash in the bank at 31 December stood at US$15 million following a share placement to raise £4.45 million (US$7 million) in November.
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