TIDMRMM
RNS Number : 2714B
Rambler Metals & Mining PLC
05 June 2019
5 June 2019
Rambler Reports Financial Results
Year Ended December 31, 2018
London, England, Newfoundland and Labrador, Canada - Rambler
Metals and Mining plc (AIM: RMM) ("Rambler" or the "Company"), a
copper and gold producer, explorer, and developer, today reports
its audited financial results and operational highlights for the
year ended December 31, 2018.
Year end Highlights
-- Revenue for the year was US$29.7 million (2017: US$30.3
million) after certain fair value adjustments;
-- Total throughput for the year was 364,176 dmt (2017: 339,631
dmt), a 7% increase which represents the highest annual throughput
on record;
-- Cash production costs for the year were US$31.2 million
(2017: US$26.4 million). Net direct cash costs net of by-product
credits ('C1 costs') for the year were US$3.52 per pound of
saleable copper (2017: US$2.86);
-- Operating loss for the year was US$17.2 million (2017: US$7.4
million). Earnings before interest, taxes, depreciation,
amortisation ('EBITDA') for the year was a loss of US$7.5 million
(2017: earnings of US$2.8 million);
-- Average prices for the year were US$2.93 (2017: US$2.79) per
pound of copper and US$1,265 (2017: US$1,257) per ounce gold;
-- Intersected significant Ming North Zone mineralization in the
underground drilling program including hole R18-722-12 which
returned 25.5 meters (downhole length) of 9.4% copper with 5.1 g/t
gold.
SUBSEQUENT EVENTS
-- In January 2019 the Company, via its wholly-owned subsidiary,
Rambler Metals and Mining Canada Limited, received a bridge loan
from CE Mining III Rambler Limited ("CEIII") of US$1 million
bearing interest of 10% per annum in support of short-term working
capital requirements at its Canadian operation;
-- In March 2019 the Company closed a private placement funding
of US$11 million by way of an issuance of 599,781,897 new ordinary
shares in the capital of Rambler at a subscription price of
US$0.018 (GBP0.014) per ordinary share. The proceeds of the
subscription were for working capital purposes and to repay the
US$1 million unsecured loan owing to CEIII. The loan was fully
repaid in March 2019 including interest;
-- An Open Offer for shares was closed in April 2019 with
37,490,043 ordinary shares issued for proceeds of
GBP524,860.58;
-- The shares of the Company delisted from TSX Venture Exchange
(TSXV) at the close of January 15, 2019. The minimal trading
activity of the Company's Shares on the TSXV no longer justified
the expense and administrative requirements associated with
maintaining this dual listing.
KEY annual FINANCIALS METRICS ($US)
2018 2017
-------------------------------------------
Revenue $29.7 M $30.3 M
-------- ---------
Cash Production Expenses $31.2 M $26.4 M
-------- ---------
G&A $5.8 M $3.4 M
-------- ---------
EBITDA $(7.5) M $2.2 M
-------- ---------
$(17.2)
Operating (loss) profit before impairment M $(7.4) M
-------- ---------
$(18.4)
Loss before tax M $(5.4) M
-------- ---------
Loss after tax $(20.0)M $(4.1)M
-------- ---------
Loss per share (US$) $(0.03) $(0.008)
-------- ---------
Cash Flows from Operations $(2.3) M $1.3 M
-------- ---------
Cash cost per lbs of copper, net
of credits (C1) (US$) $3.52 $2.86
-------- ---------
Key annual Operating METRICS
2018 2017
-------------------------------------
Concentrate Production (dry metric
tonnes) 15,525 14,907
------ -------
Copper (saleable dry metric tonnes) 4,187 3,968
------ -------
Gold (saleable ounces) 4,189 3,357
------ -------
Concentrate Grade Copper (%) 28.1 27.7
------ -------
Gold Concentrate Grade (g/t) 9.4 8.0
------ -------
Copper Grades (%) 1.24 1.27
------ -------
Gold Grades (g/t) 0.57 0.58
------ -------
Avg. Copper Price (US$ per pound) 2.93 2.79
------ -------
Avg. Gold Price (US$ per ounce) 1,264 1,257
------ -------
Andre Booyzen, President and CEO, Rambler Metals & Mining
commented:
"2018 was a banner year for operations in several areas,
including year-over-year improvements in mine output, mill
throughput, concentrate production, and metal recoveries. This
growth is due to the efforts of all of our employees and
contractors, who have continued to keep safe production at the
forefront of everything they do."
"While the mine averaged 998 tonnes of ore per calendar day from
the underground, the concentrator plant averaged 1,108 tonnes of
ore per operating day and hit single-day peak production in 2018 as
high as 1,395 dry tonnes per day."
"The completion of the surface ventilation project and the
continuation of the Business Improvement Initiative that was
started in June 2018 has resulted in improved production metrics
from the mine operation (see Table 1 below). These improved KPI's
from the mine operation have in turn resulted in better ore
blending opportunities for the mill feed, which has positively
impacted both throughput and metal recoveries. Additionally, the
processing operations group continues to de-bottleneck the copper
concentrator plant processing circuit to accommodate the increased
production from the mine."
"Given the productivity improvements in the mine operation,
which has provided access to better grade material in both the
Lower Footwall Zone and the Ming Massive Sulfide deposits, and the
positive outlook on long term copper price forecasts, we are now
turning our attention to increasing the overall feed grade
delivered to the plant and returning the Company to positive cash
flows."
FINANCIAL Results
-- EBITDA for the year were US$(7.5) million (2017: US$2.2
million). The net loss before tax for the year was US$18.4 million
(2017: US$5.4 million);
-- Revenue for the year of US$29.7 million (2017 - US$30.3 million);
-- A total of 15,525 dmt (2017 - 14,907 dmt) of concentrate was
provisionally invoiced during the year containing 4,187 (FY2017 -
3,968) tonnes of saleable copper metal, 4,189 (2017 - 3,357) ounces
of saleable gold at an average price of US$2.93 (FY2017 - US$2.79)
per pound copper and US$1,264 (FY2017 - US$1,257) per ounce
gold;
-- Cash flows generated from operating activities for the year
were US$(2.3) million (2017: US$1.3 million). The decrease in the
cash generated relates to the operating loss and changes in working
capital.
-- Current cash balance is US$2.8 million at date of release.
OPERATIONAL HIGHLIGHTS
Table 1 - Ore Throughput and Concentrate Production Summary for
Fiscal 2018
(See Note 1 below)
THROUGHPUT AND RECOVERY Q1 Q2 Q3 Q4 Fiscal
2018 2018 2018 2018 2018 Fiscal
2017
Dry Tonnes Milled 83,016 94,589 93,128 93,443 364,176 339,631 7%
Copper Recovery (%) 96.9 95.9 97.3 95.1 96.3 95.6 1%
------- ------- ------- ------- -------- --------
Gold Recovery
(%) 68.7 68.9 72.5 72.3 70.7 60.7 16%
------- ------- ------- ------- -------- --------
Copper Head Grade (%) 1.07 1.12 1.46 1.31 1.24 1.27 -2%
------- ------- ------- ------- -------- --------
Gold Head Grade (g/t) 0.41 0.63 0.54 0.67 0.57 0.58 -2%
------- ------- ------- ------- -------- --------
CONCENTRATE PRODUCTION
----------------------------- ------- ------- ------- ------- -------- --------
Copper grade
(%) 28.6 28.0 29.4 26.5 28.1 27.7 1%
------- ------- ------- ------- -------- --------
Gold grade
(g/t) 7.9 11.2 8.1 10.2 9.4 8.0 18%
------- ------- ------- ------- -------- --------
Dry Tonnes Produced 3,001 3,643 4,478 4,403 15,525 14,907 4%
------- ------- ------- ------- -------- --------
SALEABLE METAL PRODUCTION
----------------------------- ------- ------- ------- ------- -------- --------
Copper (tonnes) 823 978 1,266 1,120 4,187 3,968 6%
------- ------- ------- ------- -------- --------
Gold (ounces) 662 1,199 1,020 1,308 4,189 3,357 25%
------- ------- ------- ------- -------- --------
(g/t = grammes per tonne)
OUTLOOK
With the Phase II expansion nearing completion, management
continues to pursue the following objectives:
ü Given the productivity improvements in the mine operation,
which has provided access to better grade material in both the
Lower Footwall Zone and the Ming Massive Sulfide deposits, we are
now turning our attention to increasing the overall feed grade
delivered to the mill. The guidance for 2019 is highlighted in
Table 2 below and reflects our commitment to solidify and extend
beyond the improvements we have been able to achieve to date.
Table 2 - Fiscal 2019 Guidance
THROUGHPUT
Fiscal 2019
Guidance
400,000 -
Dry Tonnes Milled 450,000
Copper Head Grade 1.30 - 1.50
(%)
--------------
Gold Head Grade 0.70 - 0.90
(g/t)
--------------
SALEABLE METAL Fiscal 2019
PRODUCTION Guidance
------------------- --------------
Copper (tonnes) 5,000 - 6,000
--------------
Gold (ounces) 5,000 - 7,000
--------------
ü Further evaluate the potential of a Phase III operation with
increase in mine production and mill throughput to about 2,000
mtpd.
ü Continuing with the underground exploration program to allow
for further exploration of the mineralized trends both up-dip and
down-dip with the goal to increase near-mine mine resource and
reserves.
ü Continue with the surface exploration diamond drilling program
aimed to double the current plunge length of the known massive
sulphide and Lower Footwall Zone ("LFZ") mineralization.
For further information see Appendix 1 of this release. The
audited financial statements and MD&A are now available on the
Company's website at http://www.ramblermines.com
Tim Sanford, P.Eng., is the Qualified Person responsible for the
technical content of this release and has reviewed and approved it
accordingly. Mr. Sanford is an employee of Rambler Metals and
Mining Canada Limited. Tonnes referenced are dry metric tonnes
unless otherwise indicated.
Note 1: Results reported are accurate and reflective as of the
date of release. The Company performs regular auditing and
reconciliation reviews on its mining and milling processes as well
as stockpile inventories, following which past results may be
adjusted to reflect any changes.
Abbreviations:
g/t = grammes per tonne
dmt = dry metric tonnes
mtpd = metric tonnes per day
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the
publication of this announcement via Regulatory Information Service
('RIS'), this inside information is now considered to be in the
public domain.
ABOUT RAMBLER METALS AND MINING
Rambler is a mining and development company that in November
2012 brought its first mine into commercial production. Rambler has
a 100 per cent ownership in the Ming Copper-Gold Mine, a fully
operational base and precious metals processing facility and
year-round bulk storage and shipping facility; all located on the
Baie Verte peninsula, Newfoundland and Labrador, Canada.
Following the completion of its recent productivity improvement
initiative Rambler's focus is on sustaining mine and mill
production at 1,250 metric tonnes per day. With a return to
profitability and positive cash flow, Rambler will continue
advancing Phase III engineering studies with a view to further
increase production to 2,000 dry tonnes per day at the Ming
Mine.
Along with the Ming Mine, Rambler also owns 100 per cent of the
former producing Little Deer/ Whales Back copper mines.
Rambler is listed in London under AIM:RMM.
For further information, please contact:
Andre Booyzen Sanjay Swarup Tim Sanford. P. Eng.
President and CEO CFO Vice President and
Rambler Metals & Mining Rambler Metals & Mining Corporate Secretary
Plc Plc Rambler Metals & Mining
Tel No: +44 (0) 20 Tel No: +44 (0) 20 Plc
7096 0662 7096 0662 Tel No: +1 (709) 532
Fax No: +44 (0) 20 Fax No: +44 (0) 20 5736
8609 0313 8609 0313 Fax No: +1 (709) 800
1921
Nominated Advisor (NOMAD)
Ewan Leggat, Caroline
Rowe
SP Angel Corporate
Finance LLP
Tel No: +44 (0) 20
3470 0470
Website: www.ramblermines.com
Caution Regarding Forward Looking Statements:
Certain information included in this press release, including
information relating to future financial or operating performance
and other statements that express the expectations of management or
estimates of future performance constitute "forward-looking
statements". Such forward-looking statements include, without
limitation, statements regarding copper, gold and silver forecasts,
the financial strength of the Company, estimates regarding timing
of future development and production and statements concerning
possible expansion opportunities for the Company. Where the Company
expresses or implies an expectation or belief as to future events
or results, such expectation or belief are based on assumptions
made in good faith and believed to have a reasonable basis. Such
assumptions include, without limitation, the price of and
anticipated costs of recovery of, copper concentrate, gold and
silver, the presence of and continuity of such minerals at modeled
grades and values, the capacities of various machinery and
equipment, the availability of personnel, machinery and equipment
at estimated prices, mineral recovery rates, and others. However,
forward-looking statements are subject to risks, uncertainties and
other factors, which could cause actual results to differ
materially from future results expressed, projected or implied by
such forward-looking statements. Such risks include, but are not
limited to, interpretation and implications of drilling and
geophysical results; estimates regarding timing of future capital
expenditures and costs towards profitable commercial operations.
Other factors that could cause actual results, developments or
events to differ materially from those anticipated include, among
others, increases/decreases in production; volatility in metals
prices and demand; currency fluctuations; cash operating margins;
cash operating cost per pound sold; costs per ton of ore; variances
in ore grade or recovery rates from those assumed in mining plans;
reserves and/or resources; the ability to successfully integrate
acquired assets; operational risks inherent in mining or
development activities and legislative factors relating to prices,
taxes, royalties, land use, title and permits, importing and
exporting of minerals and environmental protection. Accordingly,
undue reliance should not be placed on forward-looking statements
and the forward-looking statements contained in this press release
are expressly qualified in their entirety by this cautionary
statement. The forward-looking statements contained herein are made
as at the date hereof and the Company does not undertake any
obligation to update publicly or revise any such forward-looking
statements or any forward-looking statements contained in any other
documents whether as a result of new information, future events or
otherwise, except as required under applicable security law.
APPIX 1 - Supplemental Financial Information
(See Company website www.ramblermines.com for full year 2018
Results)
Consolidated income statement
For the Year Ended December 31, 2018
(EXPRESSED IN US DOLLARS)
Year to Year to
31 December 31 December
2018 2017
US$'000 US$'000
Revenue 29,718 30,339
Production costs (31,204) (26,444)
Depreciation and amortisation (9,887) (7,798)
======================= ========================
Gross loss (11,373) (3,903)
Administrative expenses (5,823) (3,441)
Exploration expenses - (6)
======================= ========================
Operating loss (17,196) (7,350)
======================= ========================
Exchange (loss)/gain (1,503) 940
Loss on disposal of fixed assets (95) -
Profit on disposal of equity investments - 779
Gain on fair value of Gold streaming 1,323 566
Net finance costs (895) (379)
======================= ========================
Net expense (1,170) 1,906
======================= ========================
Loss before tax (18,366) (5,444)
Income tax (expense)/credit (1,680) 1,296
Loss for the period (20,046) (4,148)
======================= ========================
Loss per share
Year to Year to
31 December 31 December
2018 2017
US$ US$'000
Basic and diluted loss per share (0.033) (0.008)
======================= ========================
Consolidated statement of financial position
As at December 31, 2018
(EXPRESSED IN US DOLLARS)
31 December 31 December
2018 2017
US$'000 US$'000
Assets
Intangible assets 3,168 3,397
Mineral property 35,441 38,834
Property, plant and equipment 24,634 28,443
Equity investments 102 610
Deferred tax 11,192 13,851
Restricted cash 3,247 3,530
Total non-current assets 77,784 88,665
====================== ======================
Inventory 2,333 2,467
Trade and other receivables 1,126 829
Derivative financial asset 730 1,830
Cash and cash equivalents 241 3,351
Total current assets 4,430 8,477
====================== ======================
Total assets 82,214 97,142
====================== ======================
Liabilities
Interest-bearing loans and borrowings 6,897 3,887
Gold streaming 2,514 2,852
Trade and other payables 11,195 7,314
====================== ======================
Total current liabilities 20,606 14,053
====================== ======================
Net current liabilities 16,176 5,576
====================== ======================
Interest-bearing loans and borrowings 4,708 6,072
Gold streaming 7,829 10,624
Provision 1,855 1,961
======================
Total non-current liabilities 14,392 18,657
====================== ======================
Net assets 47,216 64,432
====================== ======================
Equity
Issued capital 9,524 8,061
Share premium 95,999 89,309
Share warrants reserve - 859
Merger reserve 180 180
Translation reserve (19,192) (14,584)
Other reserves 80 86
Retained profits (39,375) (19,479)
====================== ======================
Total equity 47,216 64,432
====================== ======================
Consolidated statement of cash flows
For the Year Ended December 31, 2018
(EXPRESSED IN US DOLLARS)
31 December 31 December
2018 2017
$'000 $'000
Cash flows from operating activities
Operating loss (17,196) (7,350)
Depreciation and amortisation 9,921 7,824
Loss/(gain) on derivative financial instrument (note 5) 1,711 (2,015)
Share based payments (note 7) 182 112
Foreign exchange difference 458 (259)
Decrease in inventory 134 29
(Increase)/decrease in debtors (297) 455
Decrease/(increase) in derivative financial instruments (611) 941
Increase/(decrease) in creditors 3,827 1,961
====================== ======================
Cash (utilised in)/generated from operations (1,871) 1,698
Interest paid (478) (376)
Net cash (utilised in)/generated from operating activities (2,349) 1,322
====================== ======================
Cash flows from investing activities
Interest received 78 43
Disposal of equity investment (note 13) 485 1,103
Acquisition of evaluation and exploration assets (48) (1,020)
Acquisition of Mineral property - net (3,879) (5,277)
Acquisition of property, plant and equipment (3,189) (4,103)
Disposal of property, plant and equipment -
====================== ======================
Net cash utilised in investing activities (6,553) (9,254)
====================== ======================
Cash flows from financing activities
Issue of share capital (note 18) 7,310 8,436
Share issue expenses (16) (112)
Loans received 3,815 5,598
Repayment of Gold streaming (note 22) (1,755) (1,105)
Repayment of Loans (1,460) (1,137)
Capital element of finance lease payments (2,116) (2,593)
====================== ======================
Net cash generated from financing activities 5,778 9,087
====================== ======================
Net (decrease)/increase in cash and cash equivalents (3,124) 1,155
Cash and cash equivalents at beginning of period 3,351 2,156
Effect of exchange rate fluctuations on cash held 14 40
====================== ======================
Cash and cash equivalents at end of period 241 3,351
====================== ======================
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR FAMITMBTMBTL
(END) Dow Jones Newswires
June 05, 2019 10:30 ET (14:30 GMT)
Rambler Metals & Mining (LSE:RMM)
Historical Stock Chart
From May 2024 to Jun 2024
Rambler Metals & Mining (LSE:RMM)
Historical Stock Chart
From Jun 2023 to Jun 2024