London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
You will only have one login account. Registering with multiple accounts is not allowed. Any user found to have more than one account on this site will have all, and any future accounts suspended permanently.
Your email and password must only be used by you. If a post is made under your account, it will be considered that it was posted by yourself.
Your account nickname must not be the same, or contain, listed company names or board members' names.
While debating and discussion is fine, we will not tolerate; rudeness, swearing, insulting posts, personal attacks, or posts which are invasive of another's privacy.
You will not;
discuss illegal or criminal activities.
post any confidential or price sensitive information or that is not public knowledge.
post misleading or false statements regarding the share price and performance. Such posts are deemed as market abuse, and may be reported to the appropriate authorities.
post any private communication, or part thereof, from any other person, including from a member of the board of directors of a listed company. Such posts cannot be verified as true and could be deemed to be misleading.
post any personal details (e.g. email address or phone number).
post live price or level 2 updates.
publish content that is not your original work, or infringes the copyright or other rights of any third party.
post non-constructive, meaningless, one word (or short) non-sense posts.
post links to, or otherwise publish any content containing any form of advertising, promotion for goods and services, spam, or other unsolicited communication.
post any affiliate or referral links, or post anything asking for a referral.
post or otherwise publish any content unrelated to the board or the board's topic.
re-post premium share chat posts on regular share chat.
restrict or inhibit any other user from using the boards.
impersonate any person or entity, including any of our employees or representatives.
post or transmit any content that contains software viruses, files or code designed to interrupt, destroy or limit the functionality of this website or any computer software or equipment.
If you are going to post non-English, please also post an English translation of your post.
If you are going to post non-English, please also post an English translation of your post.
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium and Verified Members
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Afternoon all, Cornish please correct me if wrong, but I believe that the actual extraction from the stope / mine face is a four part process, and therefore having a minimum of four means that there is always one in production (continual extraction of Ore to the surface) , therefore having 6 to 7 is mitigation for future events such as a stope collapse.
Also consider that going from only 1 stope ( in Q1 and part Q2) to say 4 during Q3 is going to increase production by that multiple and probably hence Toby's confidence in clearing the hedge at the beginning of Q4.
Happy to be corrected if i have explained this incorectly... have a great day all.
@Spero : "At the time of the stope collapse earlier this year, we only had two stopes available. "
I don't think this is true. At the time of the collapse we only had ONE working stope, so production completely halted AFAIK (we had gone from zero working stopes to one then back to zero).
We now have 2 working stopes so we are already more resilient than we were then, with new stopes opening up soon in Block 6. The last RNS said we are 100m from a new stope face so new production areas should be available very soon so we should be up to 3 working stopes at that point, again, AFAIK.
Thanks for the intelligent answers much better than the norm on here, How many personal does it take to run a stope and do they have to hire more, and one more Q would they have to train personal, or are they ready on the shelf to pick up. As you can tell I know nothing about mining.
"IMO being confident here is not being in denial of the risks. Its simply accepting them on balance with the reward."
100% agree FK. I compare market cap to likely market cap, and then look at the probability of things working out on a sliding scale. For me - the probabilities look very favourable from a risk: reward basis taking into account the risk mitigation actions that the management are taking and the current low market cap: assets comparison. They know what they need to do, and are experienced in the industry they are doing it in.
The implications of the stope collapse were the impact on production in previous months, which materialised, hence the depressed share price as a result of this issue.
The share price has factored in the stope collapse and the team responded with resolving it and opening up more stopes so that the future potential risk of a further stope collapse is less (if at all) problematic on production.
In the event that a stope collapse risk did materialise again, which is entirely feasible, we know we will have 5, 6, 7 stopes open before end of this year to mitigate / avoid this so that's IMO a managed risk now.
If any further unforeseen risks impact production, this could impact on RMMs ability to meet the hedge quantity in this year. However I'd assess as low probability and low impact, given anticipated grades, recovery, tonnage etc for the remainder of the year. This was backed up by Tony B confirming they expect to hit target this year. Ultimately he is accountable for this and will be judged on its delivery, or failure of its delivery. As a turnaround specialist I am not sure he will want to set false expectations.
On balance in the (IMO) unlikely event we do not hit production and thus the agreed hedge arrangements ; RMM have a very good relationship with the off taker who as in previous years would in all likelihood carry over any shortage into the next year. With no penalties.
Nethertheless, RMM are valued low because of these risks, and not in spite of them. This is why they offer a very good risk to reward atm IMV.
Clearly there are risks. There are risks in any business. Especially mining. I can name a number of companies who make no cash and are valued much higher without even a proven resource. Id suggest they carry much higher risk and lower reward. That's just my view.
Overall, its a personal decision to identify, assess and decide if the risks are worth the potential rewards. Its like any business case, their needs to be an investment appraisal.
Some will decide the risks are too high. Some will decide they are acceptable. Investing is a personal choice, but doesn't need to be made personal.
IMO being confident here is not being in denial of the risks. Its simply accepting them on balance with the reward.
Clearly everyone has differing risk appetites, buying averages, target prices and strategies. This means, depsite RMM being only one company, EVERYONES perspective and appraisal here will (rightly) need to be different.
Its a paradox - people can have differing views but yet still be right in line with their own situation/position etc. Its not necessary to prove being right, or gain concensus.
Additional stopes is a risk mitigation measure, as well as a productivity improvement measure. The management will decide how and when to use those stopes. Each additional stope when ready puts RMM in an improved production/reduced risk position. Just one stope is a significant % increase on what is currently available. Simple maths. All good.
At the time of the stope collapse earlier this year, we only had two stopes available. The copper produced from the collapsed stope was supposed to fund the redevelopment work over the last few months - hence the $2million loan + guarantee of further funding from Riverfort (only if required).
To avoid this situation in future, Rambler are aiming to have six or seven stopes operational by year end. We are approx 25 days away form reaching three zones. I'm not sure how these zones map to stopes, but hopefully it will mean we're well on the way to having multiple stopes running. We were back to two stopes the last time the company updated us on the subject.
No its nothing to do with flooding. The ore and surrounding rock mass is not a monolithic piece of rock, there are lots of joints and faults in it so if one piece drops out it can cause a chain reaction with lumps of rock falling out of the hanging wall (roof). In drives and other permanent openings that are accessed by people there is rock support installed (rock bolts, steel sets, timber packing and shotcrete) to prevent ground falling. It's not possible to do this in an open stope, so it's always a risk.
I would think most on here will be doing alright if we hit 60p soon, I will be very happy to be in profit, dose anyone know the reason for stope a collapse, I know nothing about mining, could it be the flood waters? Thanks