The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Good point! Sorry.
Levi, in cash terms they are only paying £30k now and another £20k p.a for another 4 years before a £150k final payment in 5 years’ time. Hopefully, by then such a payment should considered very small for Panther.
‘Worth of resources’…
Copper just hit $4.55!
RMM just need to execute the plan, with over £3bn with of resources in the ground that are becoming more valuable it will be done. I’d prefer sooner rather than later but it will be done and RMM will be very profitable. Once the mine is operating at its optimum and the ore sorter is in place the MCAP could easily be between £200M and £300M. Just patience needed.
Welcome on board Titam,, refreshing to read a post that makes sense from a long-term investment perspective based on straightforward research, experience and common sense.
Tonnes per day (produced). By the end of this year RMM plans to produce 1350 tpd at a grade of 2%. At that rate, 1350 x 2% x $9,500 (current copper price per tonne) would equate to £183,000 of revenue per day.
Back on track to be very profitable in a reasonable time period. Risks significantly reduced/mitigated, those who can see the significant opportunity are, and will continue, buying back in. Following the reversal in the SP decline it should start heading back to at least the 60p range over the coming months. Good end to the week.
Absolutely Cornish and it takes time, don't we know it, to get financing arranged, the best turnaround management team in place, the optimum strategy agreed, proper staffing on the ground, the mine repaired and functional (with contingencies developed). In my view, the ducks are very much being lined up. The SP may remain at these very low levels until all the above is finished and evidence of planned production levels and head grades is achieved but from my perspective I am becoming ever more confident that in less than just 6 months the Ming Mine can at last start to be very profitable. So now is a absolutely a good buying opportunity and then hold for at least a year or two. Additionally, we could receive some great news from left field such as a JV re: Little Deer or even a T/O approach. The risk of bad news (insolvency, insufficient finance to make the necessary investments, continued low production, further mine damage/deterioration) are also reducing month by month. Just patience needed now, GLA.
Absolutely Musey, the current SP does not reflect anything like true value for the business but sentiment is understandably low until Rambler proves it can produce to plan. When that comes, hopefully within 6 months, things will look much, much more rosy.
Great RNS, not only does it highlight the very significant resources and opportunity at Little Deer but it also provides enormous confidence that the Ming Mine will soon, at last, be producing in a ‘reliable and consistent’ and profitable manner, generating very significant free cash flow.
This company is worth a lot more than £30M, hold on to those shares!
Personally, I think the financing deal achieved is about as good as long term investors could have hoped for. We now have certainty of the company’s solvency and capacity to ‘capitalise’ the mine to ensure, with contingency and flexibility, that it will be brought back to achieve at least the production level previously managed pre-covid and the mine being allowed to fall into disrepair, namely 1350 tpd. The plan to hit 1500 tpd in 2022 would be extremely welcome and sounds eminently doable. By my reckoning that should enable revenues of at least £70M per annum and significant profits and free cash flow. Rambler has c. £3 Billion of inferred resources and as long as the Copper price remains higher than about $3.2 then there is a lot of money to be made. At the price I believe ‘where there is a will there is a way’! It looks highly likely that the price will exceed $4 for quite sometime. Toby and team are turnaround experts and they’ve done it all before and I see no reason why they won’t do it again. Once 1500 tpd production is achieved Rambler has to be worth £100M minimum. So great news this week now let’s all wait, good things will come.
There will be volatile fluctuations in the SP in the shirt term as the traders make their 10% but the current SP doesn’t reflect anything like the value of a world class resource with a mine funded to achieve a very profitable production level. True value will be achieved even as early as just 6 months away.
Brilliant to have the financial uncertainty put to bed and to have contingent debt available. With the stopes being developed hopefully the new 1500 tpd target can be achieved within 6 months and then this will be a very profitable company.Patience is the key to make very good money here.
Broker, I agree. Since the 8th the overhang shares from the 20p placing are saleable ( in an orderly fashion so as not to disrupt the market). Some of those will be sold inevitability but purely for short term profit not because the company will not be valued much higher in the future.
I love this line used by the company in their staff recruitment adverts used most recently today:
Our Company has received substantial financial backing to set it on a new course for a long and prosperous future.
I’m looking forward to that long and prosperous future, the next few weeks and months are not of concern to long term investors.
https://www.kitco.com/commentaries/2021-05-25/Copper-con.html
Musey, I think we will see the 63p again and much higher once production levels of 1350 tpd are achieved and reported. That is the game changer for Rambler in my opinion. Sounds like the second stope is needed for that. Hopefully, that isn’t too far into the future now.
Nimrod, I don’t believe there was a unwarranted ‘ramping phase’ rather people became over optimistic and impatient for the mine to be brought back to its production capacity, myself included. I’ve bought in because of the excellent fundamentals, the funding acquired that derisks the mine upgrade stage and simply the present and forecast copper price. Very simply Rambler’s share price reflects the fact that the company has never been profitable hitherto and therefore never paid a dividend nor been in control of its own destiny. However, the opportunity to reverse that is now much more likely to be achieved than not. The new management, who are incentivised to succeed and raise the SP to at least £1.25 just need to get the mine back to its previous production level/capacity, with the copper price where it is to generate profits and very significant free cash flow. That aim has been delayed by 3 to 6 months and for that period more cash will need to be raised and that is very annoying and disappointing but it should be just a small set back and the good times are at last within the grasp of the company and shareholders will be rewarded if they can remain patient.
Good buying this morning, do you think 35p is the bottom as we await news?
Worth looking at the cash flow forecast in the October presentation, it may be delayed by 6 months but very large free cash flow before long and that is even before factoring in the copper price 50% increase since the presentation was produced.