Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Well a lot better than I was expecting. Yes costs not where we want be but looking good going for remaining year. Production down to where I was expecting following financial issues but C1 costs look to be OK :
'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'
'In the meanwhile, with the flexibility we have created in the mine with the advanced level of development, we are reducing development activity. The increased ore tonnage per level that we are seeing in the Lower Footwall Zone gives us this near-term flexibility to adjust to the current downturn in the copper price.'
'The need to bring capital into the business is to ensure that long-standing legacy commitments are met and not to support on-going operations. The current drop in copper price is one which we believe to be temporary, but we also recognise the volatility in the market.'
Overall worse case scenerio would be share placing if loans cannot be renegotiated.
Personally think the loans renegotiation should work out in view of C1 costs but nothing is guaranteed.
C1 costs on the lower end of my projection for company in June. I was expecting it to be over $3.
Look forward to others views.
Told u placing is coming
To me it is not as bad as I thought in the slightest! Need capital to sustain the current growth and push towards the 20,000-ton mark. As they mentioned this is a high asset mine with very low debt with great potential for growth!
I read it as that they are looking to defer debt repayments until 2023 and looking to restructure debt. Then in the next 12 months look at a capital raise to increase production and help cash flow. How are you guys reading this?
Goingtomoonufo.... LOL no **** sherlock. you shouldnt be ANYWHERE near stock trading u buffoon
To make the mine clearly profitable at current Cu prices they would somehow need to fund the ore sorter. I think I have seen that these can improve ore concentration by about 30% before transport to the mill, with the same increase to revenue and substantial reduction in C1 costs/lb.
I see the doom and gloom merchants are out in force, of course they are, they are either city spivs trying to scare folk out of their shares or they have sold and are trying to justify their actions.
This statement is very relevant in current circumstances, remember the CEO is well respected and RMM has historically had very supportive investor/funders....
Toby Bradbury, President and CEO, Rambler Metals & Mining commented :-------
In the context of the resource base that Rambler holds, the valuation of the Company, even including its current debt position, is exceedingly low.
The operations are proving themselves and future production is at less risk than it has ever been. Over and above this, there is strong exploration potential with 3 new mineralized zones discovered just this year.
Totally agree, Ore sorter funding on long term basis sorts out repayment of current liabilities as expect this could reduce costs to around $2.50 - $2.60.
This RNS a lot better than I was expecting. Was expecting going concern paragraph as was spelt out in last RNS on capital requirements.
Was expecting C1 costs to be around $3.50 or higher based on that last RNS, so to see cost of around $2.80 by year end would be impressive and actually lower than I was originally expecting in view of inflation.
Multibagger1 said it was going bust. It's not as it looks likely there's interest and a productive mine that is paying for itself day to day
djRyan 777 has posted 109 times on RMM in the last 30 days, now negative and spamming this BB, but look at the post below a few months back, the grammar is diabolical, you see DJ posts according to DJ's position, does DJ give a fig about holders, not on your nelly.
It costs to be stupid the more stupid you are the more it costs DJ
DJ posted this in June...
'Moon if you think its going to lose money then do one , stop annoying this chat board with absolute drivel with no actual research.
Their is no way an asset like this that has had its entire market cap spent on it in the last Two years more or less and is fully developed heading for a full production profile should be valued as bust.
Copper projects take 10-20 years to come to fruition and have at least 200 million spent on them to get to where we are.
The valuation rambler has is madness etc , it has this valuation because it has never been at full production'
No research I do more then u buddy boi
Now that costs are known at full mill capacity I can see company getting long term finance for ore sorter. Its in Newgens interest as they also have a shareholding:
'the Company and NewGen Resource Lending Inc. ("NewGen") have mutually agreed to amend the third tranche of the Loan Note from US$7.8 million to a higher total of $8.0 million comprising US$3.0 million debt plus US$5.0 million in equity.'
'The Company will also issue 535,848 agent warrants over ordinary shares in the Company in connection with the equity financing. The number of warrants represent 5% of the total number of shares issued in the equity financing. The exercise price of the warrants is 35 pence and the warrants expire in 4 years from the date of issue.
I can't see Newgen interest in company folding and will be looking to assist with reducing costs further.
Fully aware there is risk here and possibly large dilution. Personally don't think company will fold but there could be a doubling of shares to cover short term debt repayment. Longer term should be OK but would be a much reduced target SP for me.
after reading RNS I feel better knowing this than I did before today.
Yes it’s not great but it is what it is and I am still of the strong belief CU will be $4-4.50 in Q1 2023 and rising from now until Dec to $4.
If they’ve done a deal with the mining subcontractor to reduce output until mid October then our variable cost to mine is reduced at the time CU has been low (past month or so).
My trust in BOD was gone last December (as many here will attest to as most hated my posts then). If it wasn’t for this lack of trust I have I would go all in now on the current SP
Much is stacked in RMM favour even with NewGen as it has just been reminded to me that NewGen took $5M equity (at around 35p) and warrants that expire in only another 3 years at exercise price of 35p.
Contractors recently took £1M of shares at 29p.
All of this has many stakeholders in RMM that are very desperate for it to work out here and soon!!
The issue in H1 was Q1. $6.42 per lb C1 cost We knew that at the time.
Q2 C1 costs were about what CU price has been last few weeks but falling all the time (June $2.90).
Guidance is C1 costs $2.70 ish by end of year. Take the obvious need to do some capital works and they are able to pay new bills on time and no issues (if they didn’t have the old ones to deal with).
They will likely structure some of the larger supplier debts as paying over a longer period of time, but all of this needs CU price to rise
BUT (most) those suppliers will be supportive I have no doubt.
NewGen kicked down the road for a little more margin or sweetener and I wouldn’t be surprised if linked to additional borrowing for Ore Sorter but will need some dilution as deposit for the ore sorter
All that matters here that they need money simple as that
Due to Brad Mills holding plus TB plus NewGen plus Contractors most at prices higher than mine and knowing NewGen will be confident in the medium term CU price and the reduction of costs from an Ore sorter, gives me the confidence I will still make a lot of money.
The difference with rational investors is that we don’t 5 hit the bed every few minutes and having decent experience in M&A and running companies I remain frustrated by TB and BOD but still confident in the asset.
If they put this up for sale we would all make a fortune.
I said last year that TB was a liability as a businessman and remain of the same opinion (although I was accused of deramping!)
I also said in July when we went to quarterly reporting (and I msg the company at the time with this) that they had something to hide.
The BOD are untrustworthy BUT the conpany is worth many times the SP and that is why I haven’t and won’t sell but will add when the time is right.
GLA - DYOR and follow your research and don’t listen to most of the nonsense posts here