Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
A lot to take in but the main thing for me is here's another mine which helps to derisk the overall risk long (long) term once it's in production. Has decent levels of graded ore so good future for Rambler whilst the price of copper is high.
I'm fairly relaxed with quarterly mining productions levels and drilling. Each RNS costs money and not cash generative until quarter one. Best to keeps expenses to a minimum.
If your a day trader maybe beneficial but don't think company are too interested in those investors.
My concern is that this mine could be a drain on any income generation at BP. What I'm interested in is how is AP and his team going to make this succesful?
Comment on Gem Diamonds BB:
'davethehorse
Mon 08:13
Posts: 426
Price: 62.20
Great news, Ghaghoo was a huge and expensive mistake and has been a drain on finances whilst on care and maintenance. All fair deal for all parties I think.'
HI Onthebeach and others. I often see you post this will rebound very quickly from these crazy lowball levels or other similar remarks.
I'm not invested currently as sold out following bad RNS by previous BoD. Got out at a loss but felt more comfortable considering dropping oil per day and increasing water cut (even though not increasing as much as expected and recent work over). What's changed since the change in BoD. Is there now an expectation bond holders will be repaid in full and their will be sufficient flow to continue exploration work afterwards?
There is no doubt the takeover by bondholders was wrong for shareholders as the assets alone should hopefully give you a better return.
Sorry for the questions but not totally up to date.
I'm trying to work out what potential there is going forward and what a fair SP could be. Is it worth re buying?
KnowO, as you know from the AGM I was not at all impressed with their financial forecasting these past few months. Obviously a lot of their planning involved the revenue from the collapsed stope and they subsequently have had stopes with lower grade of copper. By year end they will have 6 stopes to work from with continuing development.
A lot of the mine has been upgraded in the past 8 months as shown in the latest investor presentation from July. This puts the company in a good position going forward with general maintenance/replacement. Large costs taken up. There's more to be done hence the loan for further development/upgrading and whatever else planned (your guess as good as mine).
They are forecasting profit from 1st quarter 2022 which we'll take with a pinch of salt until we get confirmation. Even if this is 2nd or 3rd quarter it's a lot better position than companies which are still in exploratory stage.
Further exploration drilling has been undertaken and updates are expected in next few months which could increase current reserves which have already been increased once this year!
There has been further work undertaken at Little Deer so expect result from this as well.
So much has been achieved in past few months and mine would be profitable if the building blocks were not being put in place for ensuring continuous ore mining going forward.
Yes not a good Q&A session yesterday but we know more about their financial position and actual cost saving with placement.
All about 2022/2023 and nothing has changed from financial update in June.
This SP decline does not seem to be warranted and an over reaction by the market.
The company have stated today they should be cash positive in quarter one 2022. Doesn't seem long away at all. Of course depends upon your view point but really quick for a company which had the lower part of mine flooded just 7-8 months ago!
Unfortunately no insider position. Just some normal analysis in respect to further funding finance drawn it moves me to the assumption a shipment has not been made. To confirm a million only requested makes me assume a shipment is not far away.
Sales have increased since the West Face placement with daily regular 25,000 sales with larger sales mixed in of over 100,000. Looks to be a slow selling of shares to ensure maximisation price rather than dumping the lot which would have forced SP to 20p by now. Just my reading of matter not backed up by any concrete facts. I know many disagree with my view and believe West Face are maintaining their position for greater SP later.
With positive recent RNS's over past couple of months on:
- reserves,
- grades of copper from exploration drilling
- joint venture approaches
- stope mining increasing
You would have expected SP to significantly increase but this has not been the case. No bad news released and hence my reasoning on West Face selling. I expect this to continue but SP to staberlise as they are not looking to flood the market with their shares.
2phevs totally agree. I am invested for the long term in this share as believe the risk reward is well worth the investment.
These short term fluctuations in SP do not concern me in the slightest provided the BoD plan is being executed. There will be hiccups along the way as mining is that type of industry where the unexpected does and will continue to happen. Its how the company mitigates these risks going forward and mining from multiple stopes will ensure a steady and constant amount of ore for the mill going forward.
Drawing down on finances is going to happen whilst the plan is executed.
SP drop in the short term is due to West Face selling their shares for a good profit in my opinion. Once this is cleared I expect SP to recover. This doesn't bother me in the slightest and was not prepared to sell my holding in the interim in case a joint venture was announced or at these prices something else is announced!
I have seen so much posted about short term share price which is probably true but for longer term investors this just represents a buying opportunity.
Just my view point
Bod were hoping 2m would be sufficient but had stated, 'The need for further advances will depend on operating results, metal prices and currency exchange rates prevailing in H2 2021.'
Whilst loan with new gen is completed finances will be tight. I don't believe next Shipment of copper concentrate has been made
Been a good couple of days but really just the start in my view.
First the debt needs to be paid off (interest payments overdue) and these gold pours absolutely covers this. Think the company needs to invest in toll treatment or expanding its own processing facility to include an elution plant and gold room. Think second option is best but more expensive. Believe this can be funded via a loan as cash flow should be sufficient to cover this. The alternative is to wait and pay this off but could cause delays to mining.
Real payback will be in 2022 when mining ramps up.
Good luck to those invested especially LTHs who have stuck by Goldstone. I'm a relative newbie as invested early this year.
The presentation last week by BoD was very positive from my point if view. They did point out that H1 was challenging and with the mine being turned around I expect this to continue over next 12 months as they get all the building blocks back to a position of strength. This is definitly a risky investment but I believe the rewards outweigh the risk.
If you did not attend the presentation I had given a general overview in an earlier post from my view point.
All the best
Think I will have will have to filter all the people who talk about....to get anything meaningful out of this BB.
Well I saw it as a real positive. Not only has the company managed to secure $50m facility but other investors are emailing to provide additional funding.
Director asked for Thomas to email him directly so offer could be considered. Who knows may have funds to start work at Little Deer!
Went into presentation with an open mind, considering stope collapse earlier this year and need for additional funding.
Really clear presentation in respect to current position and where the company wants to be at the end the year. Summarised mine turnaround and now back on track following stope collapse. Check list on what's been achieved for the year so far and what the aims are for next half of year. Something us shareholders can measure them against rather than just TPD.
Extremely focused in respect to short to medium term and where they see production and completion of hedge requirements. The shelving of mill at mine as would take away from immediate re-establishment of full mine and production levels. Looking to hit 1400-1500 TPD by year end.
Benefits of ore sorter to be arrived from it next year. Clearly stated profitability not dependent on ore sorter, it would just increase it. Future investment in mine medium to long term would be through positive cash flow therefore no need for future placements. Exploration work should enhance mine life which is already 20 years plus. Other key growth opportunities outlined for the future.
What I found was a very open and transparent BoD willing to engage with share holders with questions and answers. A real relief when considering most AIM BoD.
MY overall view was the mine is now back on track and an very experienced BoD with a team in place to action the plan put in place late 2020. Those who are still sceptical of turnaround should wait until the end of year to confirm tbut I have taken confidence from today's presentation. d
Banning of Diesal and petrol cars. Months of negotiation ahead but if agreed will increase demand for copper as all EU member nations transition away from fossil fuels. RMM by this stage should be at full mining production with ore sorter, mill in place to take full advantage. I could be invested a very long time unless you guys and girls can find me a better investment...
https://www.bbc.co.uk/news/world-europe-57833807
24.143 million tonnes of Measured and Indicated Resources grading 1.69% copper and 0.32 grammes per tonne ("g/t") gold, containing 900 million pounds (408,199 tonnes) of copper and 251 thousand ounces of gold at 1% copper cut-off. This compared to Little Deer at 2.9M tonnes at 2.13% copper ("Cu") containing 135.4M pounds or 61.4K tonnes at 1% Cu cut-off. Yes Little Deer is smaller but copper grades are good.
The Inferred Mineral Resources remain at 5.023 million tonnes grading 1.89% copper and 0.41 grammes per tonne gold containing 209 million pounds of copper and 66 thousand ounces of gold at 1% copper cut-off. Little Deer an Inferred Mineral Resource of 6.2M tonnes at 1.79% Cu, containing 243.8M pounds or 110.6K tonnes (at 1% Cu cut-off).
Just on these current Little Deer figures the mine is very lucrative at current copper price when you look at cost indicate:
A copper price of US$3.60/lb (May 31, 2021 Consensus Economics long term price) and a USD:CDN exchange rate of 0.76 was utilized to derive the 1% Cu cut-off grade. Mining costs were C$50/t, process costs were C$22/t and G&A was C$18/t. Concentrate freight and smelter treatment charges were C$10/t mined. Concentrate mass pull was 7%, process recovery was 97%, smelter payable was 96% and Cu refining was US$0.08/lb.
What this also shows is how depressed SP is for Rambler when you look at reserves at Ming Mine and current position of production and where company will be in 6 months time!
I wasnt expecting updated Little Deer reserve forecasts for a month or so and thought this would be off the back of drilling exploration. Looks like they had enough data to provide an independent report and must have submitted detail over a month ago to get this update.
Looks like exploration to be undertaken as well:
'Cash generated from the Ming Mine will enable us to invest in our other assets and provide for future growth and creation of shareholder value.
Exploration, development and ultimately operation of the Little Deer Complex can benefit from the expertise and synergies with our existing operations, and we plan, through the balance of this year, to advance this important project with further exploration.'
This share is going to heat up as news is released.
Just gets better and better. Updated reserve forecasts for Little Deer.
The updated Indicated Mineral Resource reflects a 6.5% increase in tonnes and a 4.8% increase in contained copper metal, based on a 1% Cu cut-off;
· The updated Inferred Mineral Resource represents an 47.4% increase in tonnes and a 27.5% increase in contained copper metal.
As reported in a release on 7 May, 2021, the Company has received a number of unsolicited offers of interest in its Little Deer Complex and is actively seeking arrangements that can advance these projects while retaining a significant interest."
Well will need to review SP for 12-24 months as looks like JV is likely to go ahead and could be producing ore by late 2023/2024 in my view. Loving new management and their action to increase Shareholder value. Looking forward to JV news.
That the way I look at it. I have a number of stocks I trade but my core investments are longer term. There is risk in investing here but my view is that longer term there are significant profits to be made here and last two RNS have supported this understanding on how money would be raised and invested.
People have different investment strategies. Some like to day (weekly, monthly) trade others like to invest medium to long term following extensive research into a company. RMM falls into this category. A great investment case, great fundamentals which just needed a good management team behind it. Now in place following changes in BoD. They have been clear and open in correspondence which shareholders love to see. A clear strategy in place.
There are also a number of factors which could see a 50% increase in SP in a day but even if this doesn't happen long term we are seeing multiples of current SP with limited risk following finance and new plans in place.
Great company to invest in whilst SP is depressed.