TIDMRMM
RNS Number : 0422N
Rambler Metals & Mining PLC
18 January 2023
18 January 2023
Q4 2022 Operational Results
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, is pleased to
announce its reconciled operational results for Q4 2022, with the
exception of gold values which are awaiting final assay
results.
PRODUCTION
-- For the quarter ended 31 December 2022 (the "Quarter" or "Q4
2022"), the Ming Mine averaged ore production of 1,045 dry metric
tonnes ("dmt") per day (Q3 2022: 998 dmt per day). Broken ore
inventory on surface at year end was 6,047 dmt (Q3 2022: 4,741
dmt).
-- During the Quarter, the Nugget Pond copper and gold milling
facility achieved throughput of 1,119 dmt per operating day at a
feed grade of 1.84% copper (Q3 2022: 1,177 dmt per operating day at
a feed grade of 1.75% copper).
-- Plant throughput was 94,831 dmt for the Quarter at a copper
head grade of 1.84% (Q3 2022: 102,189 dmt at 1.75% Cu).
-- Recovery of copper metal to concentrate was 94.7% for Q4 2022 (Q3 2022: 95.8%).
-- During the Quarter, the operation produced 6,263 dmt of
concentrate containing 1,652 tonnes of recovered copper at a grade
of 25.6% copper (Q3 2022: 6,263 dmt containing 1,716 tonnes of
recovered copper at a grade of 27.4% copper).
-- The saleable metal production in Q4 2022 was 1,588 tonnes of
saleable copper (Q3 2022: 1,654 tonnes of saleable copper).
-- Development during the Quarter totalled 853 meters (Q3 2022: 931 meters).
Q4 2022 Production Results
Table 1 below summarizes the Ming Copper-Gold Mine's production
and development results for the last 5 quarters going back to Q4
2021 and period to date comparisons between 2021 and 2022.
Table 1 : Quarterly mine operations results for the last five
quarters and period to date comparisons between 2021 and 2022
See Note 1 below Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY FY
2022 2021
---------------------
PRODUCTION &
STOCKPILES
--------------------- -------- -------- -------- -------- -------- -------- --------
Ore Stockpiles
(dmt) at period
end 3,713 17,188 15,128 4,741 6,047 6,047 3,713
-------- -------- -------- -------- -------- -------- --------
Mine Production
(dmt) 67,002 89,053 97,627 91,804 96,137 374,620 238,351
-------- -------- -------- -------- -------- -------- --------
Total Development
(m) 1,093 1,242 1,040 931 853 4,066 3,504
-------- -------- -------- -------- -------- -------- --------
Dry Tonnes Milled 66,651 75,577 99,687 102,189 94,831 372,285 235,903
-------- -------- -------- -------- -------- -------- --------
Copper Recovery
(%) 97.2 96.4 96.5 95.8 94.7 95.8 95.5
-------- -------- -------- -------- -------- -------- --------
Gold Recovery
(%) 77.4 75.1 75.0 69.6* 71.5* 72.7* 67.5
-------- -------- -------- -------- -------- -------- --------
Copper Head Grade
(%) 1.75 1.52 1.69 1.75 1.84 1.71 1.57
-------- -------- -------- -------- -------- -------- --------
Gold Head Grade
(g/t) 0.17 0.31 0.35 0.31* 0.28* 0.31* 0.43
-------- -------- -------- -------- -------- -------- --------
CONCENTRATE
PRODUCTION
--------------------- -------- -------- -------- -------- -------- -------- --------
Copper grade
(%) 27.5 26.4 27.6 27.4 25.6 26.8 27.6
-------- -------- -------- -------- -------- -------- --------
Gold grade (g/t) 2.2 4.2 4.4 3.6* 2.9* 3.7* 5.4
-------- -------- -------- -------- -------- -------- --------
Dry Tonnes Produced 4,109 4,191 5,891 6,263 6,444 22,788 12,874
-------- -------- -------- -------- -------- -------- --------
SALEABLE METAL
PRODUCTION
--------------------- -------- -------- -------- -------- -------- -------- --------
Copper (tonnes) 1,090 1,066 1,569 1,654 1,588 5,876 3,418
-------- -------- -------- -------- -------- -------- --------
Gold (ounces) 155 424 645 513* 401* 1,983* 1,805
-------- -------- -------- -------- -------- -------- --------
* Awaiting final assay results for gold from September-December
2022
OPERATIONS
Mine Production and Developed State
During the Quarter, there were headwinds with respect to the
limited access to working capital and the attendant lack of
operating spare parts and consumables that impacted overall
production. However, mining continued in all four of the main
production areas in the mine: the Lower Footwall Zone ("LFZ") on
both 510L and 760L; the Upper Footwall Zone ("UFZ") on 790L; and
the Ming North Zone ("MNZ") on 785L.
Changes to mine design and execution have permitted improvements
in realised grades over the second half of 2022. In particular,
transforming the Ming North high-grade massive sulfide zone from
uphole longhole retreat to an overhand cut and fill stoping method
has proved beneficial as it has provided much better control over
dilution. Improved control of stope execution coupled with
increased definition drilling in the Lower Footwall Zone have
afforded the opportunity to increase the grades reporting from
these stopes.
Underlying all of these improvements is the investment in
significant mine development achieved through 2021 and the first
half of 2022, both capital and operating, which has given the mine
important flexibility in its production sources.
As previously mentioned in the Q3 RNS (dated 21 October 2022),
development was strategically reduced to keep pace with production
in all zones through the Quarter, providing sustainable access to
production tonnes going forward while preserving cash.
At the end of December, there were approximately 4,500 tonnes of
ore blasted available for mining, around 24,770 tonnes of ore
drilled ready for blasting and approximately 191,000 tonnes
available for drilling. 88% of the developed inventory sits in the
Lower Footwall Zone with the balance in the Upper Footwall Zone.
The Ming North Zone, now worked as Cut and Fill, does not carry
advanced development.
Nugget Pond Mill
The Nugget Pond processing plant achieved throughput averaging
1,119 dmt per operating day ("tpod") in the period. Plant
availability for the Quarter of 92.1% was impacted by lack of
working capital, resulting in over 100 hours of unplanned downtime
during the Quarter. Delays in procuring parts that would normally
be stocked on site resulted in downtime being much longer than it
would otherwise have been. Extended lead times for parts was
exacerbated by the supply chain challenges experienced
worldwide.
Copper recovered for the Quarter was 1,652 tonnes based on
94,831 tonnes milled at a grade of 1.84% copper and recovery of
94.7%. Recovery was below plan primarily due to mechanical
breakdowns in the flotation circuit which were caused by delays to
preventive maintenance due to working capital constraints. The
repeated stop/start of the plant operations inevitably led to
recovery losses.
Limited access to working capital also led to assay laboratory
reagent supply issues. As a result, the plant was run to maximize
recovery and hence the concentrate grade was lower than target for
the period.
FINANCIAL
Rambler took out two forward sales in the quarter of 750 tonnes
and 550 tonnes respectively. As at 31 December 2022, the
outstanding hedge position was 1,074 tonnes at an average price of
US$8,320/tonne.
Discussions continue with several groups, including Newgen
Resource Lending Inc. ("Newgen") as the Company's principal secured
creditor, to restructure the finances of the Company.
Toby Bradbury, President and CEO, commented:
"Saleable copper of 5,876 tonnes in 2022 was a substantial
uplift on 3,418 tonnes produced in 2021. Notwithstanding, our
production was below the expectations we had set for ourselves. The
reasons for this are almost entirely attributable to the increasing
working capital deficit during the year.
The under-developed state of the underground mine and the lack
of capital have been a drag on Rambler's business for many years.
The development in the mine has been addressed and the focus now is
to ensure the business is appropriately capitalised.
The extent of the developed state that has now been achieved is
evidenced by the significant structural changes we made to the
operations during the Quarter. The reduction in the development
needed going forward meant that we were able to reduce the
development teams from 12 to 4 and, as a cash-saving initiative for
the short-term, to just 3.
The improved granularity and allocation of costs that we now
have with the successfully implemented ERP system has highlighted
areas of cost and efficiency saving that we look for on a continual
basis. Initiatives in the quarter included reducing blasting from
twice to once per day which is a function of now having sufficient
blasted ore inventories in the underground.
There is confidence in the capacity and the capability of the
mine to achieve planned and profitable levels of production at
current scale, with the provision of adequate capital. The
opportunities for both production and resource expansion through
further exploration remain but are placed on the backburner while
the current financial challenges are addressed.
The level of production achieved in the Quarter is testament to
the resilience of the Rambler team in the face of the challenges
that the current lack of working capital creates.
Support of suppliers has continued through the period but has
naturally been tempered with the uncertainty created while the
financial restructuring process of the Company has been ongoing.
The support of our suppliers and service providers is never taken
for granted and is much appreciated.
Copper grade is now more consistently achieved due to the
combined benefits of improved mining standards and termite drilling
data which provides more detailed planning and design information.
Additionally, sequencing and blending from multiple ore sources
contributes to grade consistency, although this has scope to
further improve once capital constraints and scheduling impacts are
removed.
The business has generated a positive EBITDA over the Quarter
but timing of cashflows affects day to day operations. The copper
price improved over the Quarter and two opportunistic forward
positions which lock in a favourable margin were taken at US$8,330
and US$8,300 per tonne respectively with a strategy to take further
positions when the market opportunity arises.
The start of 2023 has seen renewed optimism in the markets and
the copper price has responded favourably. This further bolsters
the viability of the Ming Mine operation.
The Board is confident that the total indebtedness in the
Company is far outweighed by the intrinsic value of its assets and
operation, notwithstanding the lack of working capital and the
ongoing default in respect of the loan from NewGen.
We remain in conversations with several groups as we seek to
restructure the finances of the Company. Central to this process is
Newgen as our principal secured creditor. However, there can be no
certainty at this stage that Newgen will agree to defer or
reschedule the repayment of its loan. We will update the market on
the outcome of our financing discussions in due course. "
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
tpd = 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') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018. 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.
The Company has established a production profile to meet current
mill capacity of 1,350 metric tonnes per day with a target grade of
2% Cu and is evaluating growth opportunities from that base .
Along with the Ming Mine, Rambler also owns 100 per cent of the
former producing Little Deer Complex.
Rambler is listed in London under AIM:RMM.
For further information, please contact:
T oby Bradbury Celeste Van Tonder T im Sanford. P. Eng.
President and CEO CFO VP & Corporate Secretary
Rambler Metals & Mining Rambler Metals & Mining Rambler Metals & Mining
Plc Plc Plc
Tel No: +1 (709) 800 Tel No: +1 (709) 800 Tel No: +1 (709) 532
1929 1929 5736
Fax No: +1 (709) 800 Fax No: +1 (709) 800 Fax No: +1 (709) 800
1921 1921 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.
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