(Alliance News) - Rambler Metals & Mining PLC on Monday reported its first half loss narrowed on a revenue rise, while it separately said it has received USD5.0 million of financing through a convertible loan.
In the six months to June 30, revenue rose by 29% to USD17.5 million from USD13.6 million, pretax loss was USD6.8 million compared with USD10.7 million the year before. Loss in earnings before interest, taxes, depreciation and amortisation fell to USD1.8 million from USD5.6 million.
Administrative expenses narrowed slightly to USD2.3 million from USD2.5 million and Rambler made a USD508,000 exchange gain, compared with a USD897,0000 loss last year, helping to offset a 17% rise in production costs to USD17.7 million from USD15.1 million.
Average copper prices fell to USD2.78 from USD3.14 with average gold prices falling to USD1,309 from USD1,318.
It was a more productive period for the firm however, concentrate production rose by 54% to 10,222 dry metric tonnes from 6,644 dry metric tonnes in the first half of 2018. Copper production was up by 47% to 2,624 saleable dry metric tonnes from 1,801 with gold production rising by 32% to 2,450 dry metric tonnes from 1,861.
President and Chief Executive Andre Booyzen said: "The year-to-date mine and mill performance has demonstrated the effectiveness of the focus on continuous improvements that were started in late 2018 and still continue. Our staff and contractors are focused on producing safely and exceeding production targets."
"As a result of the operational improvement, we see that the financial performance is beginning to turn around as well. Revenue is up by USD3.9 million while incremental cash operating expenses have only increased by USD2.6 million, leading to an improvement in overall financial performance."
Looking ahead, the company is on target to achieve full-year copper production between 5,000 and 6,000 tonnes, in line with previous guidance.
Gold operations however, are not on target to achieve full year production between 5,000 and 7,000 ounces.
The company expects to mill between 400,000 and 450,000 dry tonnes during 2019 and is on track to do so after it achieved a semiannual throughput record of 211,090 tonnes.
In a separate announcement, the company said it has received USD5.0 million in funding through a convertible loan in order to improve tonnage, grades and reduce debt.
CE Mining III Rambler Ltd and Lombard Odier Asset Management Ltd have both invested USD2.5 million and the loan notes have an annual interest rate of 7%. They are convertible at a price of GBP0.014 pence per share and will mature a year after they are issued.
Shares in Rambler were 4.8% higher at 1.10 pence each in London on Monday morning.