Rambler Metals & Mining Share Discussion Threads

[owenga] 31/3/2014 17:46

Also talked about increasing throughput to 1000 from 650. They will need a new grinding circuit. But no details given on cost or timing !

[killing_time] 31/3/2014 16:38

From Proactive investors, interview with Norm.

hxxp://www.proactiveinvestors.co.uk/companies/stocktube/2659/rambler-metals-sees-lower-costs-and-higher-production-from-second-half--2659.html



Looks like they are taking another look at the lower footwall zone.

[killing_time] 31/3/2014 16:08

Recommendation type: Speculative
Matthew Allan

Disregarding your doctor's advice is by and large an unwise idea. But ignoring the ravings of Dr Copper, whose sole practice involves foretelling the health of the global economy from the way the price of copper behaves, is an altogether different proposition - and one that could prove quite profitable for contrarian investors willing to place a bet on copper miner Rambler Metals & Mining (RMM).

The price of the red metal has fallen nearly 10 per cent in the past few weeks, from $3.30 (£2) per pound (lb) to $2.99, even though there were no significant disruptions to either supply or demand. Instead, commodity investors are worried that weakness in the Chinese economy might cause a wave of Chinese defaults on loans, releasing hoards of copper being stored in bonded warehouses as collateral.

Similar overhyped fears about China have sent the price of copper down before: it touched $3/lb last summer before climbing back, and temporarily fell by a sixth the summer before that. What's more, copper consumption traditionally picks up in the second quarter and China has signalled increased investment in power generation, which should help soak up supply.

Shares in copper and gold miner Rambler Metals represent a great way to 'buy the dip'. Having tumbled 16 per cent in the past few weeks on copper price fears, the shares now trade on just six times current year earnings estimates compared with a peer group average forward PE ratio of 10, and nearly a fifth below book value.

Since November 2012, Rambler has been steadily ramping up copper production from its small-scale Ming mine in Newfoundland, Canada, supplemented by gold and silver produced as by-products. Copper production is forecast to increase 68 per cent this year to 6,650 tonnes and peak at 7,200 tonnes in 2016. While the company is on track to meet or beat production guidance this year, a torrid winter pushed up production costs by over a tenth in the second quarter from C$1.44/lb to C$1.61/lb, which will dent profits somewhat.

Rambler is using its strong cash flows and balance sheet to fund exploration and in-fill drilling to extend the life of its mine. Already it has added a year to the original estimate of a six-year life and analysts at finnCap reckon this could be increased to 10 years or more in the future. At the end of March it had C$5.8m of cash to help fund investment in the mine, with debt at the last balance sheet date made up of a C$17.5m gold loan - financed by 25 per cent of gold production - finance leases of C$7.9m and C$2.6m of conventional borrowings.

Share tip summary

At 26p, Rambler's shares have almost retreated to the level we tipped them at last year (Buy, 23.5p, 30 May 2013), despite the substantial financial and operational progress made since then. Rambler's 14-day relative strength indicator (RSI) - a momentum oscillator - is back in deeply oversold territory, too, being at the same depressed level that coincided with the start of Rambler's last four previous rallies. What's more, both increased production and the potential for mine-life extension could provide a catalyst for a re-rating of the shares. As such, we recommend ignoring Dr Copper's latest feverish health warning. Speculative buy.

Last IC view: Buy, 27.75p, 29 Oct 2013

© The Financial Times Ltd 2014. Investors Chronicle, FT and Financial Times are registered trade marks of The Financial Times Limited.

[redhill] 31/3/2014 16:05

Anyone know what was said?

[redhill] 28/3/2014 08:34

Yup.Chinese stimulus.

[bashers2] 28/3/2014 08:21

Out of the blocks this morning!

[killing_time] 26/3/2014 15:43

Henderson now hold over 19% of the company.

[killing_time] 24/3/2014 14:14

News from Manic Miner on iii.

The Hickster,

I laughed at your satirical question. I'm about a 90 minute drive away from the Ming Mine so don't get up to Baie Verte that often and can't comment on the mine operation. I can tell you however there's a lot of concentrate trucks going into Goodyear's Cove on a regular basis and the warehouse there is absolutely jammed with concentrate, probably the most I've seen in the two years since they've been making concentrate.

Their warehouse will hold 15,000 tonnes of concentrate. They should be due to ship again shortly but may be waiting for the ice to break up. There's a lot of ice in the bay this year and surrounding the coastline due to the extremely cold and long winter we have had.

All the best.

Manic Miner

[killing_time] 24/3/2014 13:27

From Proactive investors.


Marathon Gold (CVE:MOZ), in which Rambler Metals (LON:RMM, TSE:RMM) is an investor, has unveiled positive results from the Valentine Lake project in Newfoundland.

Wide intervals of good grade gold near surface have been found in the Sprite area of the project over a strike length of over 500 metres.

Highlights include 2.53 g/t gold over 16.5 metres, including 10.92 g/t of the yellow metal over 0.83 meters and 14.12 g/t gold over 1.65 metres in one hole.

Other intercepts were 1.69 g/t gold over 24.0 meters, including 11.04 g/t gold over 1.2 metres in another.

There are still 14 holes with assays pending.

Phillip Walford, president and chief executive, told investors that the Valentine Lake property had all the elements to be Newfoundland's next Gold Camp.

"The Sprite Area was a new exploration prospect when we began drilling this year and it has already developed into both an advanced exploration and a resource development target," he said.

The Sprite area includes the Sprite Zone and adjoins the Leprechaun gold deposit.

"The proximity of Sprite to the Leprechaun Deposit makes it an important focus for systematic exploration this year," added Walford.

Rambler shares added 3.43% to stand at 26.375p.

[killing_time] 24/3/2014 12:49

From Proactive investors


Rambler Metals & Mining (LON:RMM) looks cheap at current levels, according to Cantor Fitzgerald.

The broker says the fall in the share price since the company's interim results last week "appears unwarranted in our view", given the strengthening production track record.

Analyst Asa Bridle says that if it repeats the first half performance, then Rambler will comfortably beat full-year expectations for copper production.

He retains his 'buy' recommendation and 47p target price, almost double the current market price of 26p

[redhill] 21/3/2014 09:38

Somewhat over reaction here.Very bad winter and fall in the price of copper but it doesn't deserve this fall!

[sammy_smith] 20/3/2014 08:50

LISTEN: Rambler Metals & Mining (RMM) - Interim results

Click the link below to listen

[hiddendepths] 20/3/2014 07:24

Yes, disappointing. I've been out for a few months now but have been looking to get back in. On these results, I can't see any need to rush!

[owenga] 20/3/2014 07:18

Results a bit disappointing, but due to fx and cold weather. 1st qtr eps therefore down but still profitable. Should be able to turn it round in following quarter. Should get to 8-9cents eps this year, so about 6 p. At cure t price of 30p. That's forward pe of just 5! Stock needs re rating but looks like we will have to wait another 3 months!

[snowydays] 14/3/2014 11:45

The sharp fall in the price of copper probably.

[lwaxf13] 13/3/2014 21:00

Timber again. Is it headed back to low 20s? This stock just cannot get motoring. Why is that? Anyone?

[redhill] 11/3/2014 08:08

owenga

lol

[rrr] 10/3/2014 18:08

Thanks Steve, that's a good listen,
rrr

[steve243] 10/3/2014 17:06

Like George O is starting the wheels turning on Kirkland Lake Gold!
hxxp://goo.gl/DfuuWf

[lwaxf13] 10/3/2014 10:28

Well that's all any company needs - a union to interfere!!! How long before the first strike? If RMM don't already have one now might be the time to consider setting up an employee share incentive scheme.

[count chris] 10/3/2014 07:57

Needs to move up again if the uptrend is going to continue

[snowydays] 09/3/2014 12:07

Potential trouble brewing?