Rambler Metals & Mining Share Discussion Threads

[amaretto1] 18/11/2022 15:52

Luckily for Copper producers they are at the forefront of the job creation green agenda. Copper will do well.

[excellance] 18/11/2022 15:17

I think the world will sink into recession for the next 18 months, and all commodities will fall in value, and inflation will fall away next spring or summer.

Then the problem will again be poor productivity, and how to stimulate the economy.

[kooba] 16/11/2022 09:19

Agree in fact might be cash negative short term as i imagine they would need to put margin up. You don't get paid until you deliver..no one is stupid enough to pay up front.I'm sure its a piece of the refinancing puzzle. Though and the firmer prices are a great benefit.What Is a Forward Contract?A forward contract is an agreement between a buyer and seller to lock in the current price of a commodity for sale at a future date. It is a type of derivative contract (an agreement between two parties for the future exchange of an asset) used by buyers and sellers in financial institutions to hedge against market price fluctuations. Forward contracts may be helpful in particularly volatile markets because they give both parties security in the exchange of a product at an agreed-upon price.A forward contract ends at the contract's agreed-upon settlement date with cash or the delivery of assets. Forward contracts do not trade on exchange rates and are considered over-the-counter (OTC) agreements, unlike other derivatives such as futures which are based on the daily stock exchange. Buyers enter into forward contracts to mitigate the risk of an increase in the market valuation of a commodity.

[amaretto1] 16/11/2022 07:36

Really......

[nickthe saint] 15/11/2022 21:52

the forward sale of Cu doesnt bring any cash to RMM now.

It just guarantees the price of future sales.

just fyi

[amaretto1] 15/11/2022 12:50

I'm hoping when Copper settles over 4

[danmart2] 15/11/2022 12:46

The question is when will RMM start trading again?

End of November a fair assumption?

[pensionplanner] 15/11/2022 11:39

Should never have seen 5p in the first place

[amaretto1] 15/11/2022 11:18

And that's Canadian dollars .....You won't see 5 pence again ...I'm convinced of that

[amaretto1] 15/11/2022 11:13

Some production ? It's 6 million.....Our mkt cap including all debt is 40 million ...... hello

[jbe81] 15/11/2022 11:12

Rambler Metals reports that it has sold 750 tonnes of copper 12 months forward at a price of US$8,330/t.

The company says that this “represents a nominal 11% of expected future copper production from the Ming Mine, subject to completion of the 2023 budget”.

The forward sale represents approximately US$6.25m of revenue and follows the announcement last week of operational initiatives expected to generate monthly cost savings of up to US$1m at its Ming mine in Newfoundland.

Conclusion: The forward sale of around 11% of copper production over the next year secures a price of US$8,330/t and follows the announcement, last week, of cost cutting measures which are expected to deliver monthly cost savings of approximately US$1m.

[amaretto1] 15/11/2022 11:10

Or maybe you are not seeing the wood for the trees !!

[kooba] 15/11/2022 11:07

The word is obvious...and i really don't think it is obvious from what we have been told here...there is no agreement at all just informing shareholders that they have hedged some production.Think you are reading a bit to much into this bit of information alone.

[amaretto1] 15/11/2022 10:54

Not quite sure why you don't understand the odvious !!! For RMM to be able to do this ....is a huge plus for equity holders

[amaretto1] 15/11/2022 10:51

Exactly !!! It's absolutely odvious to anybody reading that RNS 6 million would cover all debt obligations.....We RMM holders now own 89 percent of production ......

[excellance] 15/11/2022 10:42

This guaranteed income could underwrite a significant loan.

[kooba] 15/11/2022 10:30

Don't get your point here..who is getting 11%..it is RMM who have forward sold (hedged) it is not a royalty agreement with newgen or anything like..it may be going some way to guaranteeing prices in future for the company. This is not the "deal" if it was RMM would be returning from suspension. It may be part of getting visibility on future earnings working out what the company can finance. We will see , in isolation considering the position it's not hugely informative on the purpose.

[amaretto1] 15/11/2022 10:21

True .....I'm pretty sure Toby will have been seriously educated in the last few weeks ! This could be now.... the base to rise from the abyss to a Mid tier producer

[pensionplanner] 15/11/2022 10:07

The past is never irrelevant when it comes to how a company is managed because history has a habit of repeating itself if unchallenged.

[amaretto1] 15/11/2022 10:04

All irrelevant now !! We own 89 percent production as of today ....Pretty odvious what's been negotiated.....

[amaretto1] 15/11/2022 10:01

They don't need to take any equity stake .....They are taking a production take !!! 11 percent. Leaves 90 percent RMMApproximate 54 M per annum At present.....Mkt cap now at 9 M ..... share price at 5 Worth 10x that !

[pensionplanner] 15/11/2022 10:00

They could have cleared the debt completely and still could and far less dilutive than any placing at such bombed out share price

I know many investors who would have happily put their hands into deep pockets to subscribe to a convertible bond at 5% interest added to the capital and convertible at 20p! I don't like the idea of any company proving up an asset using shareholders funds, bombing out the sp, then having a placing at a bombed out sp: a result of their own actions., often not open

They could and should have forward sold some previously (and stated at the time), likewise they had no need to RNS once they'd got deeply in the brown stuff making any raising a certain bombed out sp, and indeed should never have got into that brown stuff in the first place.

It had already indicated the potential raising when the share price was over 20p, but chose not to raise which would have prevented the later problems. The share price and suspension was as a result and still a few things that need clarifying, but where some were met with a brick wall, especially the association of contractor/employees, let alone who the actual note holders are for the loan that Newgen are Administrative Assistant of.

They could have cleared the debt completely with the corporate bond route, and yes it would have been dilutive, but at 20p per share, most holders would have found that more acceptable than the wholesale destruction of the share price as it is now, and suspended!

Likewise, I may be wrong, but I don't recall RMM issuing an RNS in September advising holders they had defaulted on the first payment to Newgen, that came months later!

[amaretto1] 15/11/2022 09:57

No they don't ...Not in Canada.... Newgen are very limited to what they can do .... they could never have foreclosed It's 100 percent fact written in Canadian law.... it's on Canadian soil. They have to come up with a reasonable outcome......Which is happening, as today's RNS clearly shows.... I'm happy to be in !!

[kooba] 15/11/2022 09:33

Can't agree when you breach covenants the debt holder gets to name the terms this could be part but i would imagine they will ask for more cover from equity raise or take some equity.With the way copper is moving if i was them would grab some equity or look to add conversion terms in..hoping the BoD are fighting the good fight on behalf of equity as the outlook for copper mid term gets stronger and stronger but by breaching they lost much negotiating power.Fingers crossed for a reasonable outcome for shareholders where an agreement is reached without too much dilution..could still leave some upside completion.

[amaretto1] 15/11/2022 07:43

Imo this is the dilution....6 million will more than satisfy debt holder obligations. On those figures.... the share price would be 50 pence plus ....The resumption of trading will be very interesting....It certainly won't be anywhere near 5 pence