Weatherly in trouble again
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23 March 2018
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Weatherly International, which runs copper mines in Namibia, announced this week that it could default on loan repayments of N$238 million.
The AIM listed company which operates as a going concern, has until 31 March to make the repayment, but says it’s highly unlikely that it will have surplus funds to repay the loan obligations.
The miner depends on Orion Mine Finance (Master) Fund I LP, its largest shareholder for funding.
The announcement comes as Weatherly has previously closed its mines in Namibia on several occasions on account of poor copper prices, unfavorable economic conditions and flooding.
Weatherly said the loss before tax stood at U$5,9 (N$70 million) for the six months ended 31 December compared with a loss of US$11,2 million in the year-earlier period.
Weatherly’s Tschudi mine production for the half year to 31 December 2017 was 8,844 tons, 11.5 percent above nameplate.
The company said open pit groundwater inflows, and the costs of dealing with them, continued to increase as pit mining proceeds to greater depths.
The company said while the strong December quarter demonstrates the capacity of the Tschudi to operate at well above nameplate levels, full year production is not expected to exceed its nameplate producing capacity of 17,000 tons of copper cathode.
Ojtihase and Matchless remained on care and maintenance over the six month period.
Weatherly said there were encouraging signs that copper prices were on the rise with copper price averaged US$6,521 (N$77,000) in this six month period.
In February, Weatherly International announced that it had entered into a binding agreement to increase its ownership of private Namibian company China Africa Resources Namibia (CARN) from 25 percent to 90 percent.
 
 
 
 
 
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