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They stated earlier this year that they are Targeting stoping blocks of 2% and that ran through the latest mine plan, with tge grade tailing off in qtr 4.
The aim going forward with the ore sorting is going to be to ship 1350tpd of sorted ore grading approx 2.25% to nugget pond mill.
RMM will not have to buy copper to meet the hedge agreement, IF and its a huge IF they didn't produce enough this year, then as last year it will roll into next year.
Look at figure 2 on todays RNS, there is a collosal stoping block there, being developed simultaneously on 3 levels, on the 760 they are literally 100m away from the end of the drive - 25 days and a lot of that material is payable ore.
Peterdee
You said thvexaxt same thing on 23rd July and it was clarified then! By several people. Including myself but here is what was said by me anyway..
..
@peterdee
No problems.
Re your statement >>What you say makes sense if the buyer of the hedge agrees to take less than they bought at the forward price<<
They haven't bought it. It's effectively a futures contract that say RMM will sell upto x amount of produced copper, at the pre determined hedge price. We get paid at port at that hedged price.
It covers the risk to the financial supporters of RMM in the event copper pricing fell, but the buyer a secured supply price and in this case one better than the current price.
We don't owe. So to clarify as far as I'm aware it's simply a futures contract to buy x amount of copper at x price in the future. After which RMM can sell at the prevailing copper price (which is much higher now)
We won't have to buy any copper. They haven't paid for it in advance for us to be short. It's just the upper amount of copper we will sell at the agreed (hedged) price
Atb
The amount of any dilution from CLNs will depend on the debt financing being completed at end August. The dilution Peterdee refers to relates to the approval to be able to issue that many, but provided the debt financing completes on time, they only intend to use $2m of the CLN on completion. The rest is contingency but they are seeking authority for a further amount just so they can access if needed. (see my tin opener for the beans analogy post over weekend).
As for the hedge, as has been mentioned that should be met by year end. We havent had the cash for full delivery, it's just a hedged price we will sell at. So while we want to hit it so we can get more with the higher copper price it's not end of the world.
I remain confident here. Defo over the mid term. However clearly some hurdles to work through. IMO though the risk reward here is compelling and while the price can drop on any unwanted news, I think it's largely already priced in.
Like I say. I'm not worried over the mid term. If it does drop for any reason I will buy more.
Atb
What did I tell u rmm is sinking into 0.20 how are unrealistic investors
Hi Peterdee
1. they are not producing CU as much as they budgetted for;
They are on revised guidance target. This was reviewed down from start of year due to the only working stope collapsing in March. Today's drilling results strengthen that revised guidance will be achieved.
2. They are actually short CU for 2021
See above. Short what they said at the start of the year, but on target for reviewed guidance post-stope collapse. They now have 2 working stopes and are opening up new ones, up to 7 by end of year in Block 6.
3. They are continuing to substantially dilute existing shareholdings.
The CLNs are a contingency (credit card analogy). $2m have been used. The NewGen loan is the main finance facliity. It stillneeds to close (terms are agreed). It is expected to close this August.
NewGen and Q3 results should settle the minds of investors. Also, the copper hedged sales should be fulfilled in early Q4, which is great news if the Cu price is still high.
You cant really compare grades like that Mick. Most copper production comes from low grade bulk tonnage operations, where costs per tonne are low. This is a high grade underground mine, a better comparison is with other VMS copper deposits
Mick that's true, albeit doesn't mean it's economic to mine the average grade commercially.
Paradoxically though that's why I think copper will hit a super cycle. It's not as replaceable in the supply chain, underinvestment in existing mines and so the price of copper will need to rise significantly to make the average grade (and likely even lower) economic to mine.
It's the the of the miners in the coming decade imo.
Either way, as Cornish rightly says, we're already producing. RMM are a strong investment case to me, albeit not risk free.
Atb all
Copper grades of 0.6% is the average grade of mined copper Worldwide
Google extract.....
Typical mines today have ore grades of only 0.6 percent copper. Since metal concentrations occur at much lower grades, the copper concentrations are measured in parts per million (ppm). If a sample has 1ppm copper, this means that in 1 million lbs of rock, there is 1 lb of copper.
As stated in today's RNS these are high grades....
"Rambler Confirms High-Grades in Near-Term Mining Blocks at the Ming Mine"
Obviously, as I say the RNs is fab, it's an increase in resources.
Also the CU economic cut off may improve e.g RMM lower costs through infrastructure/optimisation activity completed and / or an increase in the commodity prices.
All in all. Good times.
Atb
Maybe right Bertie I couldn't recall. If it's 1% then much much better with these results, and likely to improve once full development completed.
I thought 1% cutoff
Expansion of our resource is always good really.
The only thing I'm thinking on the other side of it is what is our cut off grade to mine economically, I thought it was somewhere Around 1.5% but may be wrong in that memory recall?
I'd be interested in the view of Cornish on this cut off grade, and if he is aware of the cut off grade lowering after completion of these works i.e. if RMM become more efficient making a lower cut off economically viable? Or if being able to blend ore from multiple stopes etc?
In all a positive RNs though
Atb
Seems positive to me
UPDATE - HIGH GRADES IN MING MINE
§ 34.3 metres at 1.14% copper, including 6.3 metres at 1.60% copper
§ 10.3 metres at 1.13% copper, including 5.3 metres at 1.55% copper
§ 5.3 metres at 1.55% copper, including 3.0 metres at 1.91% copper
o R21-620-03
§ 24.1 metres at 1.02% copper, including 4.9 metres at 1.54% copper
§ 22.4 metres at 1.33% copper, including 7.0 metres at 2.03% copper
§ 5 metres at 1.74% copper
o R21-620-05
§ 9.2 metres at 1.06% copper, including 2.3 metres at 1.89% copper
§ 13.1 metres at 1.09% copper, including 7.2 metres at 1.58% copper
§ 10.3 metres at 1.01% copper, including 2 metres at 2.14% copper
§ targeting inferred mineralisation outside of known ore body
Amazing time for rmm. Great to see toby working sweating at ming mine
"This news release includes exciting upside to the mineral resource base at the Ming Mine. As well as confirming the presence and grades of zones identified for near-term mining as part of the production ramp-up, the intersection of new zones and extended zones have the potential to further add to an already large high-grade deposit’
BOOM
Coooooooornish
Is this a good announcement?
I mean, it looks good, but I'm always getting sucked in by positive co. announcements......
It is all starting to come together, a great update this morning.
Good luck fellow investors.