Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Company is continuing to produce 550 tonnes a month as expected. Based upon prior figures provided for June in respect to costs looking at least a million plus in income over costs. Since then reduced production but there has been significant reduction in costs. In addition price of copper has increased in excess of 25%. This should be sufficient to make a major dent in the accounts payable which should help address the ongoing issues with equipment supplies holding back mining and ore processing.
Currently its all about the copper price and they look to be looking to hedge further which will assist with forecasting more accurately.
Lastly its a question of restructuring debt with Newgen and current price of copper should be assisting with making these negotiations easier as there is more confidence in long term price of copper even if there is a drop this year.
As investors we need a break so keep those fingers crossed.
NewGen seem clearly to want out as they do not appear to want to extend and pretend their loans or take a haircut. Easiest way out is for RMM to have a rights issue and open offer, followed by a new CEO.
Is there a deadline by which they need to be back actively trading on the market again? Or can they continue suspended indefinitely?
Six months in suspension, after which the Exchange will cancel the admission of AIM. Think suspended 27/10 so until 27/04.
Profitable on an EBITDA basis. So not profitable then despite improved copper prices.
Board are going to have to pull a golden rabbit out of the hat to salvage anything here for shareholders - who are rarely top priority in such situations anyway.
Fingers crossed but I have written this one off…
"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.
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.