LONDON (Alliance News) - Rambler Metals & Mining PLC Thursday said its second quarter pretax profit fell despite a revenue increase as costs, poor weather and lower copper prices hit the company.
The Newfoundland copper and gold producer, explorer and developer said its pretax profit fell 21% to CAD1.5 million for the three months ended January 31 from CAD1.9 million in the same quarter the previous year, despite a 34% increase in revenue to CAD15.2 million from CAD11.4 million.
Rambler said that its first-half figures showed revenues of CAD32.0 million and a pretax profit of CAD6.8 million following stronger first quarter results.
The company said its revenues jumped as it continued strong production with a total of 6,818 dry metric tonnes of copper concentrate compared to 6,591 dry metric tonnes of copper concentrate during the previous quarter and 4,350 wet metric tonnes the previous year.
However, Rambler said the reduction in profit during the period was down to an increased exchange loss of CAD1.2 million on a loan, higher production costs in underground mining operations, other operating inefficiencies arising due to the adverse weather conditions and lower copper metal prices.
The company said its average production costs for the period were USD158 per tonne of ore milled compared from USD131 per tonne of ore milled the previous quarter and USD1.61 per equivalent pound of copper compared from USD1.44 per equivalent of copper in the previous quarter.
Rambler shares were down 5.3% to 27.00 pence Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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