Will production be higher? Yes it will. Why? There are two sources of ore to the mill; stoped ore (production) and development ore. There are two types of development - capital (primary) and operational (secondary). Primary development mines waste, a lot ofvthe rock from secondary development (stope preparation) is payable - typically at full production around 25% of ore comes from development, at present it will be higher, with multiple stopes being developed
There's a reason for that, rambler recieves 90% payment for the contained copper when it's delivered to the port. Once it's then delivered to the refinery they are paid the remaining 10% plus the gold and silver credits.
With regards to ore sorting, it will normally be on milestone payments or periodic valuation of work completed, I don't think Tomra are likely to looking at finance options as they have a good order book at present.
By the end of tge quarter, tge design work for tge ore sorting will gave been completed and tenders possibly recieved, with the updated mine plan complete, which will enable a 12 month cashflow plan to be put together, so then what needs to be raised can be raised.
Right, let's get dome perspective on the cash situation, at the end of q1, there was $6.27 million on hand, with a further $2 million recieved in April. IF production is maintained at the same level as Q1 (it will be higher), we will recieve a further $7.5 million, so that is available cash for the quarter of $15.77 million - the company do not NEED to raise in the next few days or weeks.
I posted first thing this morning, but I do have a day job that is pretty full on and this week has been exceptionally busy.
The first thing for everyone is this is q1 I.e. until the end of march not the 2nd week of May.
What is clear is at the beginning of January we had a very poorly mine - flooded, lacking personnel, mined out of accessible reserves, just about every bit of capital plant on its knees, equipment breaking down on the mine and in the plant, so the focus for the quarter was: -
1. Fixing/replacing plant 2. Recruitment 3. Dewatering and refurbishing the mine 4. Opening up new production areas 5. Diamond drilling
This work started in Januaty/February, so a lot was achieved in those 12 weeks of Q1.
On the development front, the overwhelming majority was capital development I.e. mining waste to get to new areas, which is expensive as it brings no revenue, going into q2 that development will be switching to secondary development. I.e. developing in the ore body, which will slow the cash burn as that produces revenue.
Pretty much, one point, but its probably a terminology issue - it is one production area not one access point. Its a hangover from last years disaster where development was not in front of mining. The aim for this year needs to be to open 4 production stopes up and then maintain that, that permits mining to interchange between production areas to maintain a consistent head grade and to maintain continual mill feed - mining follows a cycle: - 1. Drill and blast 2. Support 3. Muck & Haul 4. Service. With one production stope, it is not possible to constantly Haul so it limits your production rate.
It looks like the production revenue for the year is going to be around $50 Million, which will still amount to a very good year for a turnaround year.
Bear in mind that is Q1 - we are nearly half way through q2 now. Work on the turnaround didn't start until pretty much days of q1 due to Christmas, the mine has been dewatereed, a lot of equipment gas been fixed - that is apparent in the mill performance. Development was barely in front of mining, tfat is going to take time to rectify.
Exactly Bertie, at the end of tge day, we've invested because we believe the management can turn this around. Although strangely at present they don't need to, one day though copper prices will retreat again, so they are going ahead and sorting everything out so the mine will be profitable in those days.
For tge next bunch of investors, they want to see some results - they'll come
I think what he's saying is "there's been a lot of refinancing that I don't really understand, in a business that I don't really understand, but the shareprice has moved a lot in the last month, for reasons that I Don't really understand
I'm not saying there isn't risk, but I don't believe they are the same as for most junior miners - fo starters two of the biggest risks for junior miners are the geological model not being accurate and metallurgical performance - neither are a risk here.
At present people buy or not on whether the operation can hit the turnaround plan - its ultimately for the individual to assess that risk - all the information required to make that judgement is out there.