Weatherly disappoints with decline in half year profit

4th Mar 2013 09:56

Copper miner Weatherly posted a sharp decline in half year pre-tax profits, hit by lower revenues, higher sales costs, and negative comparables with the same period the previous year. Profit before tax came in at $0.5m (2011: $13.3m), on revenues of $18.9m (2011: $23.1m), which resulted from delayed sales and lower copper prices. The cost of sales climed to $14.5m from $13.6m a year earlier. Although production in the two half years was similar, Weatherly shipped and sold 418 tonnes less copper in the six months ended December 31st 2012 because of the timing of shipments, with a corresponding increase in inventory compared with the six months to the end of 2011. The average price at which copper was sold was also $330 less in the current period. The period the previous year had benefited from the profit following the disposal of subsidiary and the release of compromise creditor provisions. Total earnings per share fell to 0.51 cents from 2.51 in the same period in 2011. Looking ahead the company said: "The company's focus has now moved to ensuring the successful development of the Tschudi project which has the capacity to transform our fortunes and convert us from a high cost, underground mining company to a mid-tier, open pit producer of copper, with the further ability to seek out and develop new opportunities. "We continue to look at ways to improve productivity and reduce costs at our two underground mines as they generate the revenues that will underpin the company's development until Tschudi reaches production."The share price fell 12.50% to 4.38p by 10:20.NR