JOHANNESBURG (miningweekly.com) – Aim-listed Weatherly International has improved overall output for the second quarter ended December 31, 2013, producing 75 281 t of ore from its Central Operations, in Namibia, and yielding 1 311 t of copper.

The copper asset developer also produced 5 330 t of copper concentrate in the three months – a 4% quarter-on-quarter improvement– but could not contain an increase in cash costs to $6 375/t, which it attributed to “once-off costs” in October and November.

The company said that, by December, costs reduced to $5 354/t, while ore grade for the quarter improved by 8% on the prior three months to 1.87%.

During the quarter, Weatherly delivered 1 238 t of copper contained in 5 638 t of concentrate to metal trader Louis Dreyfus, at a weighted average price of $7 289/t.

“Copper concentrate produced in the month of December was 542 t, our third-highest production month, and to achieve this during the Christmas break demonstrates that we are moving in the right direction.

“Most importantly, we now have access to the new Hoffnung Fault West (HFW) area, where we mined our first copper during the month," CEO Rod Webster said in a statement on Monday.

CENTRAL OPERATIONS

The company confirmed that a programme of rebuilding scoops and drill rigs continued over the quarter at Matchless, while, at Otjihase, it incurred initial establishment costs associated with starting production from the new HFW mining area.

“We continue to work towards reducing our unit costs through better access to ore and improved equipment, and improving our ore and metal output.

“We anticipate additional improvements to be realised over the coming months as we continue to increase the ratio of ore from stoping as opposed to development at Matchless and move to reduce our dependency at Otjihase on pillar recovery through primary mining in the HFW area,” Webster maintained.

TSCHUDI PROJECT

Construction of the miner’s flagship Tschudi opencut copper project, in Namibia, began in November, with the company targeting the second quarter of 2015 for production.

All contracts with the main suppliers for the project were now in place, with the exception of direct acid supply, which it expected to shortly finalise with Dundee Precious Metals Tsumeb – the owners of the nearby Tsumeb smelter – based on a heads of agreement signed in 2013.

“The Tschudi project has made significant progress, with all the elements to start on-site work now in place. The first teams are mobilising to site this month, while all orders for long lead items have been issued to ensure completion on schedule,” Webster commented.

FINANCIAL POSITION

Meanwhile, to increase its working capital, Weatherley, during the quarter, raised $1.8-million by way of placing 35.8-million new ordinary shares of 5p each, with both new and existing institutional shareholders, at a price of 3p a placing share. 

As at December 1, the company had reduced its working capital loan from $3.2-million to $2.5-million, having made loan repayments of $720 000 in the quarter.

It had also secured forward contracts of over 1 400 t copper to be delivered over the following seven months at an average price of  $8 091/t.