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Rambler Metals back in profit as grades pick up

Last updated: 23:53 29 Jun 2016 AEST, First published: 16:53 29 Jun 2016 AEST

Picture of copper in coils
Better grades at Ming helped results

Newfoundland-based copper miner Rambler Metal & Mining (LON:RMM, CVE:RAB) bounced back into profit in its latest quarter.

Better grades and higher production as it opened a new underground zone offset the weak copper price.

Output was 4,530 tonnes of copper concentrate, a 25% increase over the previous quarter.

Currency movements were also a major influence though stripping those out there was a swing to an operating profit of C$141,000 against a loss of C$1.66mln in the previous quarter.

Compared to the previous three months revenues also rose 14%, to C$10.5mln (£6.1mln) from C$8.2mln, while net income was C$1.63mln compared to a loss of C$1.54mln.

Against the same period a year ago revenue rose by 14%.

Rambler recently completed a £10.5mln refinancing to fund a drive into the higher grade Lower Footwall Zone at its Ming mine.

The funding also gave majority control (63%) to a group of high profile Canadian miners (CEII) led by Mandalay Resources’ boss Brad Mills.

Norman Williams, Rambler’s chief executive, said: "Revenue and operating profit is up compared to the previous quarter. 

“With a continued focus on cost control and production success we look to finish the year with a strong financial and operational performance, despite continued weakness in the price of copper.

"Following the investment by CEII, Rambler is now fully funded and ready to move into its next stages of growth.“

Cantor Fitzgerald said the results showed a significant improvement in production and operating costs and a reasonable financial performance including a 76% increase in operating cash flow.

The CEII investment will fund the company’s ongoing Phase II expansion at its Ming copper-gold mine. This will increase the mine’s life from around 5 years to over 20 and lift average annual copper production rate by nearly 50%.

Buy with a 12p target price is the view.

Shares rose 17% to 3.94p.

 

-- adds broker comment, share price --

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