Rambler Metals & Mining Share Discussion Threads

[chipperfrd] 16/2/2012 10:56

Just to add some idea of value of the 17% MAE equity stake:

Given the NI-43-101 compliant resource at Orion and the non compliant resource at Lochinvar, with no figures for Hammerdown. I get a Gross in-ground figure of $205m for Orion and $141m at Lochinvar. For a total of $347m at current metal prices.

Clearly, the Gross figures are relatively meaningless without all the costs, dilution, recovery, et al, figures. But using them as a starting point that would make RMM's 17% equity share come in at a gross figure of $59m.

Applying a 90% discount would still equate to c. $5.9m for which RMM have paid $1.035m.

Perhaps of more interest is the current value per tonne of ore of the two projects:

Orion ore works out at $288/t at current price.
Lochinvar ore works out at $227/t at current prices.

So it is largely about the costs per tonne to mine, transport and process these two deposits.
Chip

[cfro] 16/2/2012 10:56

Same from me, thanks guys for the articles, very interesting!

No doubt this is a class outfit and once we have Ming fully operational should be trading significantly higher.

[bashers2] 16/2/2012 09:38

Yes, thanks for that DD!

[killing_time] 16/2/2012 08:11

dukedosh, thanks for the clarification, good to see that the cash is starting to roll in from the gold pours.

[dukedosh] 16/2/2012 08:05

This article clarifies the funds used to buy the stake in MAE.

-------------------------------------------------------------

Meanwhile, Rambler Metals and Mining (LON:RMM, CVE:RAB) has strengthened the alliance agreement signed last summer - by taking a 17 per cent investment in Maritime Resources Corp (CVE:MAE), it emerged today.

The company revealed the tie up with Maritime and Commander Resources Corp (CVE:CMD) to explore the Green Bay area of Newfoundland and Labrador in June last year.

The Green Bay portfolio is made up of the Hammerdown gold mine, the Orion gold deposit and the Lochinvar VMS deposit.

City broker Fairfax said today the acquisition was a move in the right direction for Rambler, which wants to become a mid tier mining company.

That view was echoed by Ocean Equities, which said that Rambler was building a solid foundation to grow the firm into a much larger producer.

Rambler started pouring gold from its flagship ming Mine in December and in January it reported that it had already produced a total of 2,440 ounces from three gold pours.

Analyst Christopher Welch pointed out that the cash used to purchase the equity stake in Maritime came directly from cash generated from the processing of high grade gold ores from the Ming mine.

The Ming mine has great potential to be a cornerstone asset to support Rambler's ambitions to capitalise on the abundant mineral wealth in Newfoundland, said Welch.

Seymour Pierce also welcomed today's news from Rambler and rates the stock a 'buy' targeting a price of 62 pence.

"The purchase is further good news for Rambler as its continues to exploit the full potential of its proven gold mill in this gold-rich district," said analyst Matthew McDonald.

[bashers2] 15/2/2012 14:07

Thx KT. Getting interesting!

[killing_time] 15/2/2012 12:54

Taken from ManicMiner2 on the iii site who lives in Newfoundland.

"I think where the story gets exciting is that if Rambler can justify the mining of the lower foot wall zone,we know due to the low grade, it will be mined at a much higher production rate. For this to occur a new crushing and grinding system would have to be installed at the Nugget Pond facility. When this occurs you effectively have two mills running side by side, one producing a gold Dore (1806 zone, gold satellite deposits as feed source) and the other producing copper concentrate with gold and silver in the concentrate (Ming massive sulphides, lower foot wall zone).This was explained to me recently when i met the company in Vancouver. The company has told me to expect a PEA release on the LFZ shortly."

[bashers2] 15/2/2012 12:01

I agree, be a good idea if they clarified that point - would help share price

[killing_time] 15/2/2012 11:22

I would of thought Rambler would just pay for this out of the cash they hold from the draw down agreement. They would start to see money from production very soon if not already.

[bashers2] 15/2/2012 11:17

Thx KT - did quick calculation first thing this morn, but didn't see any formal mention of raising the cash. Directors might shell out for this do you think? If they are permitted to of course?

[killing_time] 15/2/2012 11:15

Yep Bashers2, though not too much money,

4.5 million shares at C$0.23 = C$1,035,000 = £662,809

[bashers2] 15/2/2012 11:03

Raising cash for this or not? Seems very good deal to me whatever the case.

[dukedosh] 15/2/2012 08:25

Proactive Investors' snapshot about RMM.

Peer Rambler Metals & Mining (LON:RMM) has acquired 4.5 million shares in Maritime Resources (CVE:MAE) for C$0.23 per share to give Rambler a 17 percent stake in the firm.

According to Rambler, Maritime has made "excellent" progress at its Green Bay properties including the Hammerdown and Orion gold mines and the Lochinvar zinc, lead, copper, gold and silver project.

"Our equity stake in Maritime strengthens the exploration and development alliance formed in June 2011," said president and chief executive of Rambler George Ogilvie.

"While we continue to optimize our own mine and milling facilities, including the Ming Mine, we will also look to facilitate growth and value creation opportunities in Maritime's Green Bay properties."

[dukedosh] 15/2/2012 08:21

Indeed it is. Here's the link to the story.



Rambler Metals advances plans for Green Bay area as it invests in Maritime Resources
7:33 am by Giles Gwinnett As part of the deal, Rambler has nominated Peter Mercer, the vice president of corporate development, to join the Maritime board
Rambler Metals and Mining (LON:RMM, CVE:RAB) has strengthened the alliance agreement signed last summer - by taking a 17 per cent investment in Maritime Resources Corp (CVE:MAE).

The company revealed the tie up with Maritime and Commander Resources Corp (CVE:CMD) to explore the Green Bay area of Newfoundland and Labrador in June last year.

Today, Rambler said it had bought 4.5 million Maritime shares in a non-brokered transaction at $0.23 per share for $1.035 million, giving it a 17 per cent equity stake.

The shares were bought from Commander, which holds an interest in Maritime.

As part of the deal, Rambler has nominated Peter Mercer, the vice president of corporate development, to join the Maritime board.

Rambler's president and chief executive George Ogilvie said the stake strengthened the development alliance formed last year:

"While we continue to optimise our own mine and milling facilities, including the Ming Mine, we will also look to facilitate growth and value creation opportunities in Maritime's Green Bay properties," he said.

"Maritime has made excellent progress in advancing the Green Bay portfolio of properties, specifically the Hammerdown mine (gold), Orion (gold) and Lochinvar (zinc, lead, copper, gold and silver). We view the partnership between Rambler and Maritime as being able to continue to add value to these properties as they move into the next phases of exploration, permitting and engineering.

"The experience that Peter is able to provide in relation to these key areas, based on his knowledge from the Ming Mine, will be invaluable to Maritime's projects as they are further explored and advanced."

Last year, Rambler said that Hammerdown is a gold mine that was in production between 2000 and 2004 and used to feed ore to the Nugget Pond processing facility – which was acquired and modified by Rambler in 2010.

It produced 157,000 ounces of gold from 315,000 tonnes of ore, with average grades of 16.1 grams per tonne. The mine was closed after it ran out of economical ore – back when gold prices were below US$300 an ounce (the current price is around US$1,530).

[timberwolf3] 15/2/2012 07:56

More good business by Rambler,

[saucepan] 13/2/2012 20:03

Nice to have your input, cfro.

[cfro] 13/2/2012 12:55

I agree saucepan. Very strong chart pattern building. In my experience a 'cup and handle' from a base building is just as powerfull as one in an up-trend.

And like you say this is a very quiet board which is good news imo. Its amazing that RMM hasnt more followers given the astounding upside available here.

With Harry Dobson in charge we are in good and capable hands. Chips eps target of 20p for the next year end is more than likely to be achieved.

I know its not always best policy to use PE ratios to valus miners but using a Pe of just 5 means a share price target of £1 and ten sees us on £2. In other words a three or six bagger.

[saucepan] 13/2/2012 12:00

Something of a cup and handle in the chart. I know that pattern tends to be more reliable when it forms in an uptrend, but it has created a very solid base pattern here. I think we will see further strong moves pdq.

I am quite amazed that RMM is such a quiet thread. The 'crowd' must have missed this one!

[chipperfrd] 08/2/2012 17:40

Very good policy to get rid of as much of the NSR as possible. Reducing from 4% to 1.5% of revenue really does make good economic sense over the longer term.
Chip

[dimotane] 08/2/2012 15:17

Seems like Rambler doing a sensible bit of housekeeping today.

[redhill] 26/1/2012 15:45

With the rise in the gold price and copper up today i would have expected Rambler to continue to rise.

[pip_uk] 26/1/2012 12:00

Red, thanks for that I will keep it on my watch list.
Cheers.

[redhill] 26/1/2012 11:33

pip_uk

If you like juniors that produce keep an eye on SHG which is due to start very shortly.

[pip_uk] 25/1/2012 15:19

I do like the look of this company.
A junior producing is something special and should be applauded.
I`m now onboard and anticipating making a fine return from my investment.
That`s my hope anyway.