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Anyone think the SP has been marched down to facilitate the 2 very large buys shown after trading hours today?
Great to get the consolidation sorted. With production works/stopes progressing, the short term finance will be sorted out, even though production target will be lower this year (priced in to the SP) once that 1350 tpd production is achieved (TB totally confident of that) the SP will hit at least the £1 mark. My view is that will be Christmas this year latest. The profit targets for 2022 onwards should be great!
Thanks Aubery
Did TB say at the AGM when he expects the second stope to be completed?
We need the 'production improvement' works to be successfully completed and then the SP will fly but that will take a few months. I for one am happy to wait as on AIM you never know when the take-off could start.
It just tells us what we already now really plus another 6% copper and 5% gold. Rambler owns billions pounds worth of copper and gold but we are valued at a pittance. To realise true value Toby and the team need to prove they can effectively extract that copper/gold. Toby has told us that he has ‘full confidence’ that he will achieve that goal by the year end at the latest. That will be one hell of a RNS when that comes. At this time Toby just simply seems to remind the world of the enormous value and potential RMM has, maybe just a sweetener ahead of the AGM?
stu - The net asset worth of RMM as per the last set of accounts was £67M and of course that does not include the c. £3 billion of indicated and inferred reserves underground..
Absolutely, accumulate and wait. Full production by year end, happy days.
I don't believe it was a pump and dump, just an over leveraged position for the short-term. Holding 67m is still pretty significant.
Cornish, therefore investors would be better off buying RMM (Ming Mine) for a mere $100 million wouldn't they? Showing again why the current MCAP valuation is so far too low.
Thanks Musey and on your very rational analysis, raising a small number of millions of pounds now in order to develop the business from a Mcap of £45M to at least £250M in a commodities super cycle would seem like a very good investment and very likely to happen wouldn’t it?
Just patience needed. Personally, I’m hoping and expecting for great return here by Christmas at the latest and then preferably I’d like to hold until 2025-2027 if my financial situation will allow.
If, after one day of the SP falling, people have started to worry about the Rambler transformation this year, it would be worth Reading Toby Bradbury’s words below (as included in the RNS of just 10 days ago):
“The effort to complete reinvestment and recovery to restore the Ming Mine to its designed 1,350 tpd of ore production should not be underestimated. From a standing start in the middle of December 2020, we expect it to take 9 to 12 months to achieve this recovery. There is complete confidence that all the issues can be addressed and the true potential of the Ming Mine will be realised."
The words ‘complete confidence’ are particularly reassuring.
All that is needed here for the MCAP and SP to reflect true value is patience.
Redorwhite - and from RMM's perspective - even if the copper price fell to $7,000 a tonne (and I doubt that) it would still be 4% higher than the assumed long-term average price used in the Company presentation.
Just means, before too long, we can have a £1 party instead of a 1p party!
Xenor - GGP did rise from c.2p to the 37p in the first place so after the retrace its still a 12 bagger for some in just 18 months!
For what it is worth I also expect GGP to rise to over 37p again in the future. RMM has just started on its transformation/rebirth - the production and exploration RNS's over time during this copper 'super-cycle' should provide the facts to underpin a market cap of least £200M.
I totally agree MJ-analyst, the results in 2020 are far better than I expected.
Tony Bradbury's statement below is all that is important now:
"The effort to complete reinvestment and recovery to restore the Ming Mine to its designed 1,350 tpd of ore production should not be underestimated. From a standing start in the middle of December 2020, we expect it to take 9 to 12 months to achieve this recovery. There is complete confidence that all the issues can be addressed and the true potential of the Ming Mine will be realised."
I love the terms 'complete confidence' and 'true potential...will be realised'.
As for the block admission and the warrants, as discussed last week they do represent a known and expected future increase in shares of c. 1 billion but will provide another £2M in cash for RMM. Fundamentally the company is trading at least 50% below its true value presently.
Copper price just broke $4.5. We are in the right company at the right time. Just patience needed now.
Next week.
Definitely, I certainly couldn't help myself!
The very impressive financials/profits forecast over 20 years in the company's presentation are based on a copper price of $2.9 for 2021 and an average of $3.0 over the full 20 years. Therefore, the current copper price is already 50% higher than forecast this year and 45% higher than the long term average forecast and the experts' estimate it going far higher still over at least the next 5 years. If copper really is the new oil, one can assume a much higher rate for the full 20 years!