(MENAFN- ProactiveInvestors)METALS & MINING EQUITIES WEATHERLY INTERNATIONAL*†(LON:WTI) — Tschudi 3Q15 Production Guidance Increased and Ceases Production at Central Operations — The AIM-quoted Namibian-focused copper producer has announced a 15% increase in production guidance for 3Q15 production for the new Tschudi copper mine — from 3000t of copper cathode to 3450t. This is equivalent to 80% of designed capacity. It also has announced that as a result of the current low copper prices it has suspended mining and concentrate production at its Central Operations. It will however prepare the Central Operations for resumption at an expanded rate of production when copper prices improve. This will involve upgrading the classification of resources at the two mines — Otjihase and Matchless — and it will also continue development to allow production at an expanded rate in the future. The company noted the strategic value of the processing plant at Otjihase which has the potential to process material from third party-controlled resources in the region that are currently stranded. RFC Ambrian Comment: Given the initial operational difficulties that the company faced at Tschudi it is encouraging that the operations are performing better than the updated guidance given in late July. The project's designed production rate of 1400tpm is planned to be achieved during 4Q15 which is expected to bring production to 10000t during CY15 and to achieve the designed rate of 17000t during CY16. Given the recent declines in the copper price and the poor operating performance at the Central Operations during the March and June quarters we are not surprised that the company has decided to limit cash outflows by suspending mining operations. We will provide more details on this announcement and an outlook for the company after further review.
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