Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Saleable Copper produced - 1588 Tons
1588 x 2240 = 3, 557,120 / lb's
Let's say $4/lb = $14, 228, 480
If RMM are supposedly not making any money, then show me calculations how they are spending the $14,228,480?
If they are employing 186 staff (miners / engineers / operators) lets for arguments sake pay them all $300 / day for 3 months solid.
My very quick *** packet calculations:-
186 x 90 x $300 = $5,022,000 ( This equates to all the staff being on over $108,000 / year )
Plant Lease Hire (3 Months) - $750,000
Fuel / Parts / Electricity (3 Months) - $2,250,000
Drilling / Blasting / Haulage (3Months) - $1,500,000
Management / Consumables (3 Months) - $750,000
Miscellaneous - $500,000
Under $11,000,00 million and I think in my opinion I am being very generous, prove different to me.
A sale of company is more likely than mass shareholder dilution. Any large equity raise will need shareholder approval. There is a large percentage of shareholders who are private investors. They generally would vote against unless a rights issue. BoD also cannot work against interest of shareholders and a recent case with Hurricane Energy has shown what private investors can achieve.
Overall still comfortable here especially with current price of copper. Viability of mine and prospective buyers lining up to get it on the cheap should see me get my money back and hopefully a good return on top. Definitly not the price I was hoping for when first investing but still good.
....yet producing thousands of tons of copper per annum, in a rising market.
RMM's assets massively outweigh debts so even if sold due to inability to service debt, we're on a winner (well, those still 'in')
Good old positive RNS fetches them out the woodwork, what sour loosers.
I heard it from good sources- LMFAO
One particular poster even recommending one of their own posts using another account, it couldn't get anymore desperate.
I think you have concocted a bull**** story from todays` RNS (e.g. spare parts situation) in order to feed your daily need to be spiteful and bitter - as Jim Royle would say `Rumour my ****!
As further grist to the mill:
https://www.reuters.com/markets/europe/funds-jump-back-into-copper-betting-chinese-recovery-2023-01-17/#:~:text=LONDON%2C%20Jan%2017%20(Reuters),the%20world%27s%20largest%20metals%20buyer.
C1 isn't the key metric really. You need the fully allocated c3 costs. C1 can be profitable but doesn't cover the broader Dev and company costs.
If may be they are making profit when they sell against the contract but it's as possible they aren't. Clearly they are functioning hand to mouth and suppliers remain unpaid and debt defaulting without any obvious signs of movement or intent from NewGen who basically have the keys to the asset.
The only positive RNS would be situation resolved. Until then it's all conjecture.
This is BS.
The lender is running the mine and has to forward funds to keep the mine operating at maximum efficiency.
From the rumours I've heard it sounds like they're so short on cash they've completely run out of spare parts on some of their primary pieces of mining equipment. Essentially they have to idle all mine development until they get some sort of financing (bridge loan, equity raise, full restructure/refinance). If they don't get things sorted out in the next month or so they will quickly burn through the 191kt of developed inventory (~6 months of mining) and replacing that material isn't an overnight undertaking.
Also updating their NI43-101 as they claim they want to in short order is going to set them back something like $500k and no firm is going to take that work without full payment up front.
Copper is 4.32 and will touch 4.50 soon .rmm is producing 600+ ton from January .they save $1 million from November by cutting staffs and still producing 525+ ( think Christmas holidays ).by March rmm will back to trading with new finance deal with newgen .
Monkey you are really monkey .we need to raise some money to check your head .
*so
They get paid 90% or do at delivery at the port. Not bloody difficult and not a huge delay. Do yes I do get it.
If machinery breaker the lender has to fund it. No mining, no payback.
You don't get it.
You don't get instantly paid once the copper is processed per Ton, each day, it doesn't work like that.
They have now mined for 3 months and produced 1,588 tons of copper with a sale value of over 14 million.
Once this copper is sold, they will have money left over providing working capital.
They have got over the difficult phase, at the current copper price and efficiencies being made, they are making money, simple.
They stated multiple times they don't have any working capital. They cannot even buy spare parts for machinery. Take the blinkers off. I want this to do well as much as anyone, but they repeated multiple times in the RNS that they are broke.
Saleable Copper produced - 1588 Tons
1588 x 2240 = 3, 557,120
Let's say $4/lb = $14, 228, 480
You will not convince me RMM are now not making money.
I agree it appears with copper price and increased staff that up to the end of September they were just covering costs, now this is a different ball game.
I would expect another hedge being announced shortly, protect themselves.
This is all in my opinion, dyor
If they were in profit they would not be in need of working capital.
There are seven strong statements about lack of working capital. They have made it clear they cannot function properly without it. On top of that they are still in default on the Newgen loan. Management have full control over some things, but getting more capital is not one of them. Therefore unless they can persuade someone to put in more funding, the mine cannot function properly. (= difficult decisions will have to be made )
Whatever other things they are doing well, as you have highlighted, I find it hard to agree that this is a "very positive" RNS.
Well said boss
"When looking at the operating performance, a C1 operating cost in June 2022 of $2.91/lb is starting to show the true potential of this mine. This incorporates all the price increases experienced over the period and we expect this number to continue to reduce. We project our C1 cost at the end of 2022 to be in the range of $2.70-2.80/lb"
Now if RMM produce low ball figure of 550T copper month, this has been more nearer the 600T but less say 550T for arguments sake.
550x2240 (2240lb per Ton) = 1,232,000
Let's say $1 profit per pound for arguments sake.
$1,232,000 profit per month.
Today's RNS in my opinion is very positive once again.
Efficiency introduced and RMM are still able to produce the same figures in Q4 with 20% less staff as they did in Q3.
And this was achieved with 100 hours down time.
As stated in the RNS, cashflow was tight at the end of September due to lower copper price and increased mining staff, this has all changed now over the last 3 months.
RMM only get cash in the bank when the copper is sold, which from my previous calculations I still think in my opinion they are now making over 1 million profit each month at todays current copper price.
Once this 1588 tons of copper is sold, RMM will be in totally different situation which is why the suppliers are fully supporting them knowing that payments will be slightly delayed, but will be paid.
A positive RNS will always bring out the doom and gloom gang.
Copper price according to the know it all's should be less than €3/lb now, Q4 results was going to be far far less than Q3 due to 20% staff reduction.
Well, they all wrong again, scaremongering, that's all they are capable of.
I expect suppliers have very strict payment terms rather than providing credit terms on a 30, 60 or 90 days basis. I expect anything new ordered paid straight away or within 30 day period as a maximimum.
"Support of suppliers has continued through the period"
I read "support" as meaning they still cannot pay their suppliers, even with the positive move in copper price.