Rambler Metals & Mining Share Discussion Threads

[snowydays] 01/4/2012 16:29

Tilt Cove Mine in its heyday.

[dukedosh] 30/3/2012 16:20

Not a rise at all just the huge 10% spread. Last trade at the full ask, hence it appears a rise at first glance. A common error some make with these dual listed stocks.

[killing_time] 30/3/2012 16:01

Yep, C$0.58 = £0.363

[snowydays] 30/3/2012 15:51

The chart of RAB above seems to show the shares opening with a 10% rise in Toronto.

[cfro] 30/3/2012 12:17

Yes, very nice interview, thanks randombutton.

Looks like Gold production is going bette than expected. Update on that due in a month.

Also copper concentrate production on target for mid may.

The management expect a re-rating of the shares after a full quarter of copper production of 3 - 4 times cashflow.....thats a 50% to 100% share price increase.

Nice to note that no potential bid under £2 will even be considered

[killing_time] 30/3/2012 12:05

Hi snowydays,

The expenses are high at the moment because they include all capital development costs, but this will reduce when the copper starts.
You could be right on time it takes to receive first payment on copper concentrate.The time line i have is production starts in mid May then expect the first shipment of 5000 tonnes of concentrate about start of September which could be worth between $12-$20 million profit, then say every four months.
I do not believe the cash burn will be a problem until first payment as we already have $7.1 million in the bank and this will rise until the swich-over in mid May.
Bottom line: looking at $30 million profit from now till March 2013 then this will rise to between $36-$60 million depending on copper prices each year.

imo KT.

[snowydays] 30/3/2012 10:34

Good article, thanks for the link.

Expenses running at $2.5m each month. Quite high. Current income of $4m each month from gold production, but 25% of that belongs to Sandstorm. Presumably we don't actually have to pay Sandstorm for the time being and that is helping with cashflow until copper production starts.

However there is still scope for problems to arise with the concentrator or shipping arrangements. If there is a long delay to receiving income from the hoped for copper production then cash burn could become a real problem, although there may be other areas of high gold ore which could be mined if it becomes necessary.

We are all hoping for a rerating when copper production gets underway, but that is still not a certainty.

[killing_time] 30/3/2012 09:26

Thanks randombutton, great interview, with some good numbers.

Like the bit on takeover where he says if someone offered £2 that would be good but if they offered £5 a share we would sell.

This interview backs up my theory that this is probably the best company i hold and way undervalued, management doing a really good job in tough market conditions. KT.

[snowydays] 24/3/2012 09:10

A couple of videos of Rambler Metals copper concentrate storage facility at Goodyear Cove. We can see that the facility is conveniently located next to a good road and close to the harbour.

There must have been snowydays there in Newfoundland before the video was made!

I was really trying to find some details of how the concentrate will be shipped. The arrangement seems to be that Rambler will receive 90% of the estimated revenue from the concentrate when it is delivered in 500t lots. I would like to know the shipping arrangements. Will Rambler buy or commission a ship purely for it's own use in taking concentrate from storage at Goodyear Cove to the smelter's storage plants?

[killing_time] 22/3/2012 18:09

Thanks snowydays.

[snowydays] 22/3/2012 17:55

From the Metal Bulletin articles popsted by ajviews earlier:

"Once Rambler reaches full copper production, monthly revenue will rise to as much as $8 million, compared with current revenues of about $4 million a month, based on its monthly gold production of about 2,600oz."

"Our forecast will be for $30 million in free cash by March next year. We should be able to make quite a lot of money very, very fast," he added. '


Snowydays approves of making a lot of money very very fast.

""Our year ends on July 31. At the year end, we'll have two months' commissioning, and one month's copper production," Mercer said.

If anyone wants to read the articles:

username: [e-mail]

password: SC372238

[fangorn2] 22/3/2012 17:40

Ahhh (:
I always skip the header, so eager am I to get into the daily commentary.

Cheers for the heads up Chip

[chipperfrd] 22/3/2012 17:32

It's in the header!

I had no note regarding Henderson being a holder prior to this although perhaps I have missed it. But it is good news to have another substantial Institutional Investor on board.
Chip

[fangorn2] 22/3/2012 17:27

How about linking the RNS then CFRO?

[cfro] 22/3/2012 16:49

Holdings RNS out, not Tinma tho.

[myst1] 22/3/2012 16:39

The large trades today are all buys. Somebody obviously acumulating, probably Tinma.

[chipperfrd] 22/3/2012 12:15

There is more to production than just the concentrator!

They have detailed their expenditure in the release so pointless me repeating it.

They are repeating that first copper concentrate should be produced in calendar Q2 which is the main thing. In the meantime they are mining both gold and copper ores and continuing to produce gold before they switch over to concentrate production.

No guarantees of course - this is mining! But it looks as though they have sufficient cash to carry them through to (and beyond) first concentrate sales.

[ajviews] 22/3/2012 12:11

Some Metal Bulletin headlines, not a subscriber myself but RMM is getting the story out and the highlights are in the opening paras -

[snowydays] 22/3/2012 12:08

No, construction of the concentrator was finished before the end of the quarter. The $5m spent from Jan 31st to Mar 22nd is on something else, although it does include $1m taking a 17% stake in Martime Resources. Cash should be sufficient provided the start of copper concentrate production goes smoothly as hoped, but if there are problems and delaysthings are uncertain.

[chipperfrd] 22/3/2012 10:40

snowydays

Not sure why you would expect cash burn to be lower, after all they are funding the construction of their copper concentrate production line!

Cash is bound to be tight hence the introduction of Timna and the importance of the Sprott facility. But at least they have some additional cash flow from 1806 to make things somewhat easier.

[snowydays] 22/3/2012 10:19

I'm not surprised the shareprice is falling today.

Cash burn seems quite high.

"Cash resources as at January 31, 2012 were $4.0 million (as of March 22,
2012: $7.1 million)."

But that increase includes nearly $5m from the placing with TIMNA. It seems that the cash received from gold sales is not covering expenditure.

It is likely to be several months from the end of gold production to the start of copper concentrate production, and then several months more before full revenues are received from the sale of the concentrates. If there are problems and delays there could be problems with cash resources.

[bashers2] 22/3/2012 08:56

Results good imo also - operations going to plan and plenty going on in background!

[redhill] 22/3/2012 08:49

I agree.Results more or less as expected.Our buyer stll soaking up these sales so i'm not really expecting a drop.