LONDON (Alliance News) - Rambler Metals & Mining PLC shares dropped by a third on Friday morning after the company said it has implemented a revised plan for the Ming copper-gold Mine in order to cut costs and said it has faced further issues in the dilution of ore production stopes at the site.
Rambler shares were down 33% to 13 pence in early trade, the worst performer in the AIM All-Share and a new 52-week low, after the company said it has started implementing short-term cost-cutting measures at the site as it also addresses grade and production issues.
The fall in the copper price in January has resulted in the company conducting a complete review of its financial plans for 2015 as it works to evaluate the full impact the lower copper price will have on its business.
In addition to the copper price fall, the company faces a problem over unplanned dilution of ore production stopes, due to ground stability issues within the active stoping areas at the Ming site. This has resulted in a fall in the run-of-mine head grade in the past couple of weeks and will mean further ground support and large pillar sizing will be needed for some existing and new stoping areas in order to ensure stability.
In response to the problems, the company has implementing cost-cutting measures, including laying off employees, along with the suspension of all non-critical spending plans. It said the review of the costs at the site is ongoing.
"Though the copper price is outside our control the measures, we are taking are intended to ensure that other issues affecting the business have only a short-term impact," said Rambler Chief Executive Officer Norman Williams.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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