LONDON (Alliance News) - Rambler Metals & Mining PLC on Wednesday said its loss widened in the first half of 2018, hurt by higher production costs and currency exchange movements.
The Canada-focused copper & gold producer's pretax loss widened in the six months to the end of June to USD10.7 million from USD4.9 million, despite revenue rising to USD14.4 million from USD12.7 million.
Production costs rose during the period to USD15.1 million from USD12.7 million the year before, while administration expenses jumped to USD2.5 million from USD1.7 million.
Administrative expenses include USD600,000 expenditures for a productivity improvement initiative.
The company also said it booked a USD897,000 loss on currency exchange rates compared to USD552,000 gain the year prior.
For the three months to the end of June, Rambler produced 3,643 dry metric tonnes of concentrate, up from 3,001 tonnes produced in the first quarter of its financial year ended March, but down from 4,359 tonnes produced in the same period a year earlier.
Copper production also rose in the second quarter to 978 saleable dry metric tonnes from 823 tonnes produced a quarter before. In the second quarter of 2017, copper production stood at 1,112 tonnes.
Rambler said it produced 1,136 saleable ounces of gold during the period, up from 662 ounces produced in the first quarter and up from 898 ounces produced in the second quarter of 2017.
The company said average copper prices declined slightly to USD3.13 per pound from USD3.15 in the first quarter. In the second quarter of 2017, average copper price was USD2.56.
Turning to gold prices, the second quarter saw an average of USD1,307 per ounce, down from USD1,334 in the first quarter, but up from USD1,255 in the second quarter 2017.
"The second quarter of 2018 showed improved financial performance over the first quarter, driven by a 14% increase in mill feed tonnes together with higher copper and gold head grades," said Chief Executive Norman Williams.
"As we continue to work towards embedding continuous improvement in mine planning, mine operations and maintenance we look towards sustaining all our targets every day," added Williams.
Shares in Rambler were trading 3.9% lower on Wednesday at 3.98 pence per share.
