LONDON (Alliance News) - Rambler Metals and Mining PLC Thursday reported an increase in its pretax profit for the third quarter of its financial year supported by lower production and administrative expenses.
The Canadian copper and gold producer, operating in the province of Newfoundland and Labrador, said pretax profit in the quarter ended April 30 rose to CAD3.3 million, up from CAD193,000 for the same period a year earlier and a pretax profit of CAD1.5 million in the second quarter.
It said its profit in the quarter was boosted by a reduction in exchange losses of CAD1.5 million experienced on its gold loan, and by lower expenses, which offset a slight quarterly fall in revenues to CAD15.1 million from CAD15.2 million in the second quarter of the year. Revenues however were up on a year earlier, when it recorded revenues of CAD10.1 million for the third quarter.
In the year to date, the company said its pretax profit stood at CAD10.1 million, with revenue of CAD47.1 million.
"With stable production and the resultant free cash flows the company is now debt free following the repayment of its credit facility during the quarter. We are in a strong position now to continue working towards optimizing the copper-gold assets while exploring select growth opportunities," said President and Chief Executive Officer Norman Williams in a statement.
The company said it produced a total of 6,238 dry metric tonnes of copper concentrate during the third quarter, and a total of 19,648 metric tonnes since the start of its financial year. This compares with 6,818 dry metric tonnes produced in the second quarter of the year.
It said production in is line with its full-year guidance of between 20,000 and 24,000 dry metric tonnes.
Concentrate grades averaged 29.32% copper, with 8.02 grammes per tonne gold and 79.15 grammes per tonne silver, all higher than the previous quarter.
The company said that at the end of the quarter, approximately 40,000 to 50,000 dry metric tonnes of ore was either developed, drilled, blasted or in stockpiled inventory.
Rambler Metals & Mining shares were trading 3.5% higher at 26.00 pence Thursday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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