Rambler goes on and on- BUY17 May 2012 11:28
http://www.growthcompany.co.uk/recommendations/2100988/rambler-goes-on-and-on.thtml
Canadian miner Rambler Metals & Mining could be a suitable pick for commodity-hungry investors as it nears maiden profits. The AIM-quoted concern joined the junior market in 2005 and in 2007 took out a dual listing on the Toronto Stock Exchange. The company owns the Ming Mine project, located in the Baie Verte Peninsula on the North East of the Canadian island of Newfoundland.
The Ming Mine was once a serious copper/gold producer but last produced in 1996. In 2010 Rambler agreed a $20 million funding agreement with the Toronto Stock Exchange-listed Sandstorm Resources, and in 2011 Ming returned to life and again began processing gold.
In addition to the mine itself, Rambler also owns a milling operation 40 km from Ming, which is capable of processing up to 1,000 metric tonnes per day of sulphide ore. The mill itself first began production in 1997, when it was able to produce 350 metric tonnes per day, and was later upgraded so that it could produce 500 metric tonnes per day.
It was previously owned by the Greenland-focused Crew Gold, which used the site to process gold from its Nalunaq gold deposit, but was bought by Rambler in 2009 for C$3.5 million (£2.2 million).
Rambler is led by Scottish engineer George Ogilvie, who previously worked at mining giant Angle America before joining Rambler in 2006 as vice president and chief operating officer. Two years later he became chief executive officer.
Overseeing the action is Harry Dobson, a former chairman of the Honduras-focused American Pacific Mining. The non-executive team includes Greek ex-commodity trader Stanley Neamonitis, geologist Merv Roberts and lawyer and corporate finance specialist Leslie Goodman.
In March, Rambler issued its results for the three months to January, in which it enthused that a total of 4,022 ounces of gold had been processed from the Ming Mine, of which 3,563 ounces were poured and shipped for refining. Gold recoveries stood at nearly 91 per cent in its first quarter of gold production, while 38,922 tonnes of gold ore were mined.
A loss of C$1.04 million on turnover of C$2.5 million was also reported, while cash stood at C$4 million. The group also announced that Tinma International, the investment vehicle of what the company described as a ‘China-based investor’, took a stake worth 9.9 per cent in a deal worth C$4.58 million. This mysterious investor subsequently appointed Dalis Chan, who worked for the Tinma Group, to represent its interests on the board at Rambler.
Analysts at house broker Seymour Pierce estimate a net present value of $251 million at a discount rate of 5 per cent. Rambler is, of course, exposed to the hefty Indian and Chinese markets, and any slump in the two Asian giants would damage the company, as it would the sector as a whole. However, with a considerable upside to its share price, the company is a suitable
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