Rambler Metals & Mining Share Discussion Threads

[wellum1959] 29/5/2012 18:52

My thoughts are that the difference you see, is due to the 91% recovery efficiency.

[snowydays] 29/5/2012 17:55

There was nothing impolite in my observations or questions. On the other hand your terse response was both impolite and childish.

[chipperfrd] 29/5/2012 16:13

Don't bother asking any more questions if you intend to be so impolite.

You clearly know all the answers so why waste other peoples time.

[snowydays] 29/5/2012 15:52

It has nothing to do with the hydromet, it is the capacity of the crushing and grinding circuit common to both the hydromet and copper concentrator.

This is what Rambler stated in an announcement.

"In those two weeks, milling throughputs averaged 706 wet metric tonnes
per day with an average gold grade of 7.39 g/t. This represents the
highest continuous throughput and grade seen to date "

In his recent interview G Ogilvie also claimed that the circuit had averaged above 700tpd processing the gold ore and would probably be able to handle 800tpd + when copper concentrate production is underway.

However, the monthly figures show that nothing like 700tpd was averaged in any month.

[chipperfrd] 29/5/2012 15:12

You are confusing two different processing circuits.

The gold hydromet is rated at c. 630tpd and is what has been processing the gold-rich ores - and further has been subject to tuning and refinement. It has managed some peaks of throughput but we cannot expect it to reliably exceed it's rated capacity without further additional capacity being added.

The new copper concentrate circuit is rated at 1,000tpd and has now been turned on and will be brought up to speed throughout the commissioning process.

The copper concentrate will be produced via this new circuit and the tails will be passed through the existing gold circuit for additional recovery of gold that has been missed by the copper flotation circuit.

But both operations require the 24/7 attention of process operators and cannot be efficiently turned on and off to suit normal day-work practices. Hence, like similar operations worldwide, they need to keep the processes constantly running via 24 hour shifts.

[snowydays] 29/5/2012 14:52

How do you explain the low monthly tonnage figures?

[chipperfrd] 29/5/2012 13:34

It is quite clear from the recent PEA that current and future operations work around a 24/7, 365 day, shift system.

[snowydays] 29/5/2012 12:53

It is extremely inefficient if they are not working 7 days a week. The main bottleneck seems to be the capacity of the mill. There does not seem to be a problem with getting ore out of the ground, or even with the capacity of the concentrator.

That means that by utilising the mill 7 days a week they could increase production by about 16% at virtually no cost. The only cost would be the wages of the mill operators and it should not be a problem getting them to work Sundays at double bubble.

Let's hope that the copper concentrate production will be utilising the mill 7 days a week.

[king suarez] 29/5/2012 10:30

Yep, good spot. Seems to be about 600tpd if you assume every day of the month is a working day?

I don't recall if G.O ever mentioned the shift schedules in any of his interviews? Though I do think he has referred to expected annual copper concentrate production numbers, so might have to see how these tally up!

[snowydays] 29/5/2012 09:22

Notice that although Rambler claim to have been averaging over 700tpd of ore processing, in fact the figures suggest that they are averaging below that. The only explanation seems to be that Rambler were not working on Sundays at least for the gold production.

If it is just apart time mine only working six days a week I will have to reduce my estimates of copper production by one seventh.

[king suarez] 28/5/2012 12:25

Thanks Snowy, will check out the presentation later..

[snowydays] 27/5/2012 16:23

Rambler have updated their website putting the interview with Geirge Ogilvie on there as a featured video. They have also placed a new coprporate presentation there dated May 2012. Here is a link to the presentation.



One thing I found very interesting is that we only need to deliver 500 tonne lots of concentrate to the Goodyear's Cove storage facility to begin receiving payment. 90% payment is due on delivery in 500 tonne lots. That means that the commissioning using low grade ore from the LFZ should still result in enough concentrate to receive the first payment after a month or so.

[snowydays] 26/5/2012 22:43

We can improve this stockwiki page. What better info should be put there? Perhaps the latest Ogilvie interview?

[king suarez] 23/5/2012 15:23

Agreed, we still have some room in the credit facility unused do we not?

Also, if things were too tight I would imagine that we would have delayed either (or both) the recent expenditure on aquiring a stake in the name of the small explorer in the region that escapes me for now, or buying out part of the smelter royalty?

[snowydays] 23/5/2012 15:23

Yes it is dilution. The fact that the shareprice fell and they may be paying above the market price is irrelevant. It is dilutive because it decreases earnings per share. It is also dilutive in terms of assets per share as the price paid is below asset value per share. It is also below reserves value per share and is therefore dilutive in terms of our reserves.

As money starts to come in from operations one of the best uses for that money would be to buy back our own shares in the market. Just six months income should be enough to buy back 30% of Ramblers issued shares. Then we will see the shareprice improve.

I think that interview may have been on the 15th as Ogilvie mentioned that they had just received notification that TINMA had increased their holding. That means the interview was before the sharp fall in copper prices. I hope that Ogilvie is no longer so enthusiastic about wasting shareholders money on the LFZ now that the safety margin in the copper price is so small.

[killing_time] 23/5/2012 11:55

Hi dukedosh,

Interesting point you raise about dilution. The question is, is it dilution because they payed slightly above the sp, so if we are given £2.56 million and in return we give them £2.56 million in shares its not really dilution imo. KT.

As for fully financed up to copper production i believe we are and i interpreted the interview as the Chinese complaining that they cannot get enough shares in the open market without the share price rising and so we let them have some at about the share price level keeping them sweet and adding a few pounds to the coffers.

Just my view,KT.

[dukedosh] 23/5/2012 11:33

Interview tells us what we want to hear, but as a long time holder, I am once again disappointed with even more dilution.

Weren't we told that we were fully financed up to first copper production 3 placings ago?

I'll continue to hold, awaiting the copper production numbers for the next 2Qs. Any where near company guidance and the share price must correct upwards as GO indicated.

[king suarez] 23/5/2012 11:08

Thanks chaps - let's keep fingers crossed that further exploration of the 1807 zone proves up more of the higher grade resources!

I thought the interview was very good. George O comes across as an intelligent, honest, straightforward guy and gives me further confidence that the management team know what they are doing.

[chipperfrd] 23/5/2012 10:12

Just for clarity:

The point at which a development project reaches 'Commercial Production' is largely an accounting issue as costs that were previously capitalised are, under IFRS, required to be expensed. It is also the point at which assets begin to be depreciated/amortized.

Quite what criteria is being used by Rambler to define 'commercial production' is as yet unknown (at least to me) but I have previously seen 85% of the full production rate being used elsewhere.

Given that first copper processing has just commenced it would appear a reasonable expectation that the Commercial Production threshold will have been reached by the last quarter of this calendar year - as stated by the CEO.

Clearly, they will need time to work through the commissioning phase in order to fine tune recoveries and to ramp up throughput at all points along the production chain from mine to final concentrate.
Chip

[snowydays] 22/5/2012 22:02

Revenue will fall away as Rambler starts to process lower quality ore.

Rambler will start by processing high grade ore from the 1807 zone, 3.86% Cu and 1.75g/t Au, about $400 of contained metal per ton of ore. That will last about 500 days at 800tpd. After that Rambler will presumably process the South zone upper which will take 150 days or so. After that they will have to progress to the lower zones graded at 1.64%Cu and 2.24g/t gold. That is only about $230/t of contained metal and more of the value is made up by gold which the concentrator is not very efficient at extracting. Being deeper it may also be more expensive to mine.

On the bright side the 1807 zone remaines open up and down plunge so it might be extended considerable. The north and south zones remain open at depth.

[king suarez] 22/5/2012 19:35

Why do you expect such a drastic fall over the remaining years Snowy?