Managing director Rod Webster foreshadowed the loss at a conference in Townsville today.
Not surprisingly, at the centre of WestMet’s problems is the Mount Gordon copper mine in Queensland.
WestMet has had ambitious plans for the former Aberfoyle mine via the use of pressure oxidation leaching technology.
However, Mt Gordon has been dogged by problems – power, agitation and pumping issues have affected the mine’s plant and reduced its availability. The end result has been less production than budgeted.
WestMet’s other headaches have been the Hellyer zinc-led mine in Tasmania, which was forced to close due to ore depletion, and losses on hedge positions.
However, Webster has forecast a turnaround at Mount Gordon with production predicted to rise from 34,813 metric tonnes of copper cathode to 46,350t in 2000-01.
Cash costs are also expected to improve by falling from US51c/lb to US38c/lb.
WestMet’s share price was half a cent weaker at 33c by the close of trade today.
