Rambler Metals and Mining PLC (LON:RMM CVE:RAB) remains on track for a sizeable step-up in production at its Ming mine in Newfoundland over the coming 12 months.
The first quarter saw 794 tonnes of saleable copper and 391 ounces of gold as mill throughput averaged 910 metric tonnes per day, but underground development aims to boost production to 1,250 tonnes per day.
“The primary focus during the second quarter was on the development meters necessary to achieve our longer term mine plan of 1,250 mtpd, with a balance of development and stoping mineralisation,” said chief executive Norman Williams.
Broker confident on direction
Cantor Fitzgerald noted that the miner maintained its full year guidance of 5.1-5.8kt copper and 4.4-5.1koz gold for the full year but that is based on the expectation of a pickup in production in the second half.
Even though Cantor says the first quarter leaves it work to do, it concludes that RMM is continuing to move in the right direction operationally.
“We fully expect the company to reach its Phase II target throughput rate this year and for grades and metal production to improve as the operation stabilises following this expansion phase.”
“We still see good upside in the Rambler share price, which could be further added to by the other production options management is now evaluating for a possible Phase III development (including pre-concentration of ore and shaft hoisting).”
Buy with a target price of 14p.