Weatherly disappoints with decline in half year profit

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.

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

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021