Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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After an utterly disastrous day I'll play this game :)
“The Company has recently completed an update of its long-term financial model taking account of the current macro-economic situation, which has indicated a requirement for additional capital
[V8 - I like the phrase "long-term financial model" suggesting they are preparing for the future]
The principle issues that the Company needs to address on its balance sheet in the short term are acceleration of the repayment of legacy commitments made during the intense Covid period .
[v8 - This reads to me as Rambler would like to clear this debt sooner, rather than later - don't expect it is NEWGEN calling it in early as they would need contractual terms to do so]
reduction of current operational accounts payable balances back to current terms
[V8 - I READ THAT AS THEY COULD BE IN ARREARS AND PAYING PENALTIES AS A RESULT. I HOPE NOT, BUT THAT'S HOW I READ IT.]
rescheduling the repayment of longer term debt to better match Rambler's operational cash flow generation
[V8 - MAYBE AS SIMPLE AS TIMING PAYMENTS FOR FLEXIBLY TO FIT IN WITH SALE OF COPPER? - I DON'T KNOW]
and further capital expenditures to further reduce operating costs.
[V8 - USEFUL MINING STUFF]
In addition, the Company is conducting a continuous review of its operational and capital commitments to identify elements that can be deferred without impacting near term operations, to ensure financial viability in the face of current copper prices
[V8 - I liked the use of "long-term financial model" earlier, but I don't like "financial viability" at all rather than optimising profitability, reducing costs etc.]
The capital to be sought is intended to consolidate the Company's operational gains and commence the process of strengthening the balance sheet in a more permanent way.
[surely there is a better phrase than "more permanent" but why not, I like a longer outlook]
As indicated in the Company's 2021 year-end accounts, Rambler started the year with limited working capital and as production has increased in an inflationary environment, the Company's working capital needs have grown. This was accommodated to some degree with a previously favourable copper price but the current period is such that the Company recognises the need to prepare for a more sustained inflationary environment and one where copper prices may be more inherently volatile.
[V8 - they refer to a "previously favourable copper price" and then earlier "in the face of current copper price" so I can only read that they planned around a copper price of around $4, somewhere between the "favourable" and "current".
It's an awful RNS for so many reasons, but my interpretation of it isn't all that bad and I'm still invested with a very large holding, having lost a small fortune today. (only lost if I sell though, right?)
Good luck to you all.
I don't think screwed as we can turnover more than that debt in a years mining... the issue is managing of finance and efficiency. It sounds like the mine is getting there, they now need to sort finances out.
I’ve now read the RNS over and over again and am still really struggling to work out what it really means. So, a commentary below… any assistance working it out appreciated!
“The Company has recently completed an update of its long-term financial model taking account of the current macro-economic situation, which has indicated a requirement for additional capital [THIS WOULD SUGGEST NO SHORT TERM ISSUE, BUT SEE BELOW]…
It should be noted that the current stress on the business is from balance sheet weakness rather than operational viability. The focus of new capital would be to strengthen the balance sheet [THIS MUST MEAN THEY WANT TO PAY OFF LOANS OR DEFER LOANS OR JUST HAVE ACCESS TO MORE WORKING CAPITAL, BUT NO IDEA WHICH] at a time when operational performance has improved following continued development investment…
The principle issues that the Company needs to address on its balance sheet in the short term [NOW THERE ARE SHORT TERM ISSUES - COMPARE PARA 1 ABOVE] are acceleration of the repayment of legacy commitments made during the intense Covid period [WHAT ARE THESE? THE OBVIOUS THING COMING UP IS PRINCIPAL REPAYMENTS TO NEWGEN BUT THIS WOULD BE A CURIOUSLY OBLIQUE DESCRIPTION OF THOSE. IF THIS IS A REFERENCE TO NEWGEN, DOES “ACCELERATION” INDICATE THAT NEWGEN ARE CALLING IN THEIR WHOLE DEBT EARLY? IF NOT, WHAT IS THAT WORD REFERRING TO?]; reduction of current operational accounts payable balances back to current terms [I’VE READ THIS PASSAGE 20 TIMES AND STILL CAN’T WORK OUT WHAT IT MEANS]; rescheduling the repayment of longer term debt to better match Rambler's operational cash flow generation [IS THIS A REFERENCE TO NEWGEN AND DOES IT IMPLY NO ACCELERATION OF THE NEWGEN DEBT? (COMPARE ABOVE)]; and further capital expenditures to further reduce operating costs. In addition, the Company is conducting a continuous review of its operational and capital commitments to identify elements that can be deferred without impacting near term operations, to ensure financial viability in the face of current copper prices [HOLDING OUT FOR HIGHER PRICES?].
The capital to be sought is intended to consolidate the Company's operational gains and commence the process of strengthening the balance sheet in a more permanent way [THE FIRST FINANCING ANNOUNCED WILL JUST BE THE START?]. As indicated in the Company's 2021 year-end accounts, Rambler started the year with limited working capital [REALLY?] and as production has increased in an inflationary environment, the Company's working capital needs have grown. This was accommodated to some degree [EVEN AT 4.50 CU THEIR WORKING CAP NEEDS WERE ONLY ACCOMMODATED TO SOME DEGREE??] with a previously favourable copper price but the current period is such that the Company recognises the need to prepare for a more sustained inflationary environment and one where copper prices may be more inherently volatile.
Why pay back the loan early and tell people great choice or not then say record productivity well if your cash straped just pay the interest and keep up productivity not rocket science !!
At what price and cost,once raised could this turn the company around
Good post west ..its way overdone .once we inform market that we produce 700 to 900 tons per month with rising copper price in near future we will be 40p+ quickly.
Company need few millions for capital development which will strong company's financial position .improving in production side is going on and cu will rise significantly in coming months .
I think by same time next year we all will be very happy .....remember TB said it much more better than people think ...I believe in TB and rmm ...without knowing how much money they need and how they manage it (placing or loan ) ,people just emotional and sale .copper will be bounce hard and rmm sp will bounce very hard as well...
I never realised the insane rate they (ie we) are paying Newgen:
Rambler Metals & Mining PLC said Friday that it has closed a $22 million loan with NewGen Resource Lending Inc. to complete the development of its Ming copper-gold mine in Canada.
The mining company said that the loan note will be closed in three tranches, matures in three years and bears interest at a rate of 8.0% plus the greater of three-month Libor or 1.75% per annum.
10%+ per annum. Yes we need to recapitalise...
The asset is massive, they just need to turn it round.
They can but we need clarity, that RNS was shocking quite frankly, I'd be embarrassed to put something out like that.
well there website looks quite good anyway
that must be worth something
https://www.ramblermines.com/
They can turn this around
It must be higher than that moon, thats bugger all really.
Investors will see this as a work in progress opportunity!!
6,585,595 is our debts at moment
Why trash share price though, if you announce a raise or loan deal fair enough, today just raises some quite serious questions.
Feels that way... they will have to list on another exchange or raise by institutional investor, there isn't a chance private investors will now give them more cash on Aim, been burnt too badly.
The company has to do whats right for company right now!
The state of the financial side of things today was the same as yesterday!
The difference is rambler had to make some difficult decisions to get this company back on track and the conclusion is still not fully decided.
Don't panic as you can have further regrets down the line.
I'm holding out and riding the storm
I personally think we have great foundations here once the debt is managed correctly imo
I agree Joy, it seems like this is a sandard behaviour for this management for several years (even though we have a new CEO). they seem to be happy enough because all executives get their salary anyway, other employees get paid regularly and business is going on. Everything on our expense.
Agreed mate, all the best to you and all shareholders
I agree metalhead. My view is probably they won't until it's done also. Obviously if it's not sorted before the financials are issued over the next few weeks.
If they intended to announce it they would have today. They'll wait until either the financials and/or confirmation.
Like I say there is an investment case here for all possible decisions. Whatever decision anyone makes needs to suit their own approaches and appetites.
Only thing I suggest is to make those decisions from a place of objectivity, rather than emotion or based on other posters (myself included).
Days like this people can see through the genine posters and those that aren't.
These boards of full of all sorts. They can be a good source of reflection and aid research and unbias thinking if used the right way. They can also be very damaging and egofests.
Atb
You can understand it in terms of making the investment case more appealing by carving out a bigger chink of the asset value through SP destruction. But that's hard to square against the BOD's duty to maximise shareholder value. If that's what's happened, then I'd expect resignations.
Fuku, “For me the market and I need to see financials and to understand in more detail the proposed finance plan/requirement/costs”. Completely agree, but will the company deign to provide that information in advance of implementing their chosen solution? I doubt it. More likely the next RNS is the one announcing the outcome
Goingtomoonufo
Not being funny but what on earth are you going on about?
that is right crash price get the money that u need both company win. if rmm goes to 8p as I think. I sell all my shares in ufo premium double down on rmm.
Probably it's because it was hard to find an investor who will pay 20+ p a share in this risk off environment