Tschudi produces more copper cathode
Weatherly International says it is unlikely to generate sufficient surplus cash to meet all its loan repayments when due.
Jo-Maré Duddy
More than 4 000 tonnes of copper cathode were produced at the Tschudi mine in the months ended September, the highest quarterly production so far this year.
Releasing the latest results, majority shareholder Weatherly International Plc said the 4 105 tonnes of copper cathode produced is 21% more than the previous quarter. It is also 12.7% higher than production in the September quarter in 2016.
Cathode production for the three months under review was 3% below nameplate over the quarter. However, Weatherly says nameplate production levels were re-attained by the end of the quarter, “and are expected to be maintained going forward”.
The company says it is unlikely to generate sufficient surplus cash to meet all loan repayments when due, particularly in the near term. It is “positively” engaging with Orion Mine Finance on the subject, Weatherly says.
In August Weatherly said its debt repayments due to Orion were rescheduled. It also made its first drawdown on the uncommitted loan of US$10 million it secured from Orion. Weatherly says it has certain copper and currency hedges in place to March 2018.
Price
Meanwhile, London copper fell back yesterday, after hitting its highest in a week in the previous session, as market participants said the recent rally was losing its legs and a correction was due.
The “sheer weight of selling that materialised into US$7 095 to US$7 105 has for now taken the steam out of the rally although dips remain supported,” said Matt France, head of institutional sales, metals, for Marex Spectron in Asia.
Encouraging prospects for economic growth in China, the world's top consumer of metals, spurred prices recently.
China's economy will likely grow 6.8% in 2017, topping the state target and accelerating for the first time in seven years, a Reuters poll showed on Tuesday, as Beijing walks a tightrope by containing debt and property risks without stunting economic growth.
“The positive sentiment created by recent economic data should see commodity prices remain supported,” ANZ said in a research note.
“The prevailing sentiment in copper is bullish based on this synchronised global growth backdrop we're seeing, but when you're close to these levels the probability of a slowdown is much higher,” said Julius Baer analyst Carsten Menke.
“We see an oversupplied copper market next year partly driven by a slowdown in China on the property and infrastructure side, and we have mine production coming back after this year's strikes,” he said.
– Additional reporting Nampa/Reuters
More than 4 000 tonnes of copper cathode were produced at the Tschudi mine in the months ended September, the highest quarterly production so far this year.
Releasing the latest results, majority shareholder Weatherly International Plc said the 4 105 tonnes of copper cathode produced is 21% more than the previous quarter. It is also 12.7% higher than production in the September quarter in 2016.
Cathode production for the three months under review was 3% below nameplate over the quarter. However, Weatherly says nameplate production levels were re-attained by the end of the quarter, “and are expected to be maintained going forward”.
The company says it is unlikely to generate sufficient surplus cash to meet all loan repayments when due, particularly in the near term. It is “positively” engaging with Orion Mine Finance on the subject, Weatherly says.
In August Weatherly said its debt repayments due to Orion were rescheduled. It also made its first drawdown on the uncommitted loan of US$10 million it secured from Orion. Weatherly says it has certain copper and currency hedges in place to March 2018.
Price
Meanwhile, London copper fell back yesterday, after hitting its highest in a week in the previous session, as market participants said the recent rally was losing its legs and a correction was due.
The “sheer weight of selling that materialised into US$7 095 to US$7 105 has for now taken the steam out of the rally although dips remain supported,” said Matt France, head of institutional sales, metals, for Marex Spectron in Asia.
Encouraging prospects for economic growth in China, the world's top consumer of metals, spurred prices recently.
China's economy will likely grow 6.8% in 2017, topping the state target and accelerating for the first time in seven years, a Reuters poll showed on Tuesday, as Beijing walks a tightrope by containing debt and property risks without stunting economic growth.
“The positive sentiment created by recent economic data should see commodity prices remain supported,” ANZ said in a research note.
“The prevailing sentiment in copper is bullish based on this synchronised global growth backdrop we're seeing, but when you're close to these levels the probability of a slowdown is much higher,” said Julius Baer analyst Carsten Menke.
“We see an oversupplied copper market next year partly driven by a slowdown in China on the property and infrastructure side, and we have mine production coming back after this year's strikes,” he said.
– Additional reporting Nampa/Reuters
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