Member Info for Cornishknocker

Something is afoot at South Crofty, the car park is filling up at the mine, new perimeter fencing and gates are being installed at the tuckingmill decline and the route for tge discharge pipework to the red river appears to have been cleared.

Ultimately ming mine and rambler have a great potential future. Ming mine is a relatively large, relatively high grade deposit, it will essentially be a new mine after this year, but it us imperative tgat it is set up right.
The fact they were mining from one stope on the deposit they have, is s huge failing of past management, it leaves tge mine vulnerable to varying grades and changes in ground or ground collapses.
It is for this reason tge mine only ever hit nameplate capacity for a short period of time. Get to the point where miningbis taking place from 4 stopes and the planners and geologists can keep a steady head grade to the mill, the development team have a relatively easy job keeping development in front of mining, if something goes wrong it doesn't have a drastic effect on production.
Many mines (this one included) have failed due to undredevelopment, there is a golden opportunity here to get the mine working to its full potential which will pay rich dividends in the future.
With regards to funding, for all the people saying a raise is imminent,I believe you are wrong, I believe funding is likely to be leveraged on Little Deer. Lots of people want copper mines - we have 2 - Ming and Little Deer/Whalesback. The focus for Rambler has to be Ming mine, so what I would be aiming for is this: -

1. Sell a 25% share of LB/WB for a cash settlement, which will solve short term funding needs.
2. Give the purchaser an earn in agreement for 25% over the next 2 years, incentivising them to progress LD/WB.
3. In 2 years time we can work with the partner tobring that mine to production

I would say from the RNS no, not at tge moment as they are behind on their delivery schedule

I would say not, although it can't be ruled out, particularly if transamine think tge price is going to keep climbing. The bottom line is the creditors (now the majority shareholders) insisted that the company hedge half a proportion of this years production, the company hedged at close to the spot price (they can't do any more than that).

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.

On the outgoings side, we have $2.5 million on payroll for the quarter, $0.25 million on diamond drilling, $500k on underground development, $750k on transport, $750k on processing.

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.

Because that was the terms of the financing and some of that debt was short term debt from suppliers

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 love it!

That's a dreadful cross you have to bear LB, you have my sympathy! ;-)

Anyway I started a project by the mine today, tge car park is filling up nicely - they have themselves a lovely branded hilux over there.

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.

It's good to see but the lazy stockline "like all junior miners there is a significant risk" - which basically translates to I have to paint a balanced picture but I can't be arsed to research it.

I want to know what those significant risks are?

Buying its the easy part, moving it is a different ball game altogether.

That sounds very close to my estimates pre consolidation, I had it at 7p post turnaround

I assumed he was talking post consolidation