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Just in case any newbies haven’t read this statement from Toby Bradbury (CEO) on Feb 16th, well worth a read ahead of the next quarterly update due next week or the week after:
"This year is a transformation year for Rambler. In the past two months, we have made good progress with our turn-around plan. We have resumed development in the lowest levels of the mine with a mining fleet that continues to improve in availability. We have successfully increased the strength of our mining team with excellent recruits in management, supervision, training and operating. This enhanced capability has enabled us to re-evaluate the mine development strategy, internalising certain elements, with cost saving benefits.
"The first diamond drill rig is already in operation with the planned in-fill program underway. With proceeds from this financing, we will look to accelerate and extend the exploration spend in 2021, picking up on our exciting prospectivity and resource conversion potential.
So much exciting news to come!
Still rising. The stars are aligning.
https://www.ramblermines.com/files/rumble-ii-investor-presentation-october-2020-for-rns.pdf
Just keep reading that.
Fire ant, if the turnaround plan is implemented as planned, the 1350 tpd is achieved (and then grown) and the copper price remains over $3 then the company should be very profitable as is shown in the last company presentation. I have every faith in Toby Bradbury and his team achieving that and fully expect the copper price to be way higher than $3 for a fair few years. The history, I’m afraid, is irrelevant now.
Xenor, as ever, with a company with strong fundamentals (a profitable operating model) during a period where the commodity prices are favourable the big money will be made by the patient. The ducks are aligning for RMM so well, we just have to sit and wait.
Absolutely St-tropez, key today was moving on from the resistance at 0.5p. Another great day for RMM, 5% to 8% increases a day to get the re-rate of the SP to 'true value' as opposed to 20% up one day and 15% down the next is much more preferable.
Once we get past .57 and then .59, next resistance isn't until .88 according to Barchart UK.
Stopped looking down at .5p now and started looking up towards the 1p!
Absolutely Saint-tropez considering RMM already has 264,131 ounces of measured and inferred ounces of gold, worth £339.4M at today's price..
Totally agree with MU345.
The SP will test .5p again very soon..
Copper price flying again. Here's to another good week as the RMM year of transformation continues at the perfect time. GLA.
Monkeydluffy, the only dilution mentioned, that would be relatively immaterial and unconcerning relates to the outstanding warrants. The choice to exercise them is with the warrant holders not the company. I agree with you that I think the probability of the company choosing to issue more shares themselves is low. I’ll go and buy my t-shirt now.
Thanks. Based on the warrants issued and exercised since the share restructuring announced on Nov 13th last year by my calculations the unexercised warrants stand at 1.1 billion. I can’t imagine any warrants issued prior to the restructuring would still be exercisable either due to time limits or because of a likely much higher exercisable price. Therefore, the numbers and points I raised before all stand. I.e. when all the warrants are exercised they could result in net dilution of between 5 and 10% but for medium and long term holders that dilution should be set against a targeted increase in value of the company of 100 to 300% (a Mcap of £100M to £200M). If the copper price rises as predicted by many sector experts and the targeted production rate increase is achieved, even a Mcap of £200M could look very low in a few years’ time (see Cornish’s excellent calculations, from Friday I think). The potential upside is huge based on the equity and funding in place (there could be more funding required for exploration but only because the upside there looks enormous too and I would hope that would be funded from free cash flow over the next couple of years). So now we just need a competent management and staff optimising the use of an updated, fully operational mine (I’m sure there are significant opportunities to improve the efficiency of operations and bring the cost of production down too)and in my opinion I believe we are getting close to having that now.
Ps. If the no. of outstanding warrants is 1bn (based on your assertion that the company would receive £2M and I guess the least they would be exercisable at would be 0.2p) then that would result in a share dilution of c. 9.3% for a cash receipt the equivalent of c.4% of the market cap. So logically, with a dilution greater than the value it would generate then, it would be better for us shareholders for the warrants to not be exercised. However, they will of course be exercised and I actually think the company is in such a strong position now to create very good added value from using that £2M that I would conclude that I don’t mind when they are exercised because I absolutely plan to be a long term holder. I think the company over the long term could use the £2M to generate more value than 9.3% of the Mcap (c. £4.6M) so I’d prefer them to be exercised sooner. Day traders may have a different view. However, as the company is so clearly undervalued, I also think the warrants, even at a billion, are not a concern. I think the company should be valued, by the end of this year, between £100M to £150M. At an average of £125M the SP would be 1.17p. If all warrants are exercised the SP would fall to 1.07p. I’d be very happy with either!!
Sam spade, how many warrants have not yet been exercised and where is that data made public?
Thanks in advance for any advice?
Indeed FigTree - looking ever better today.
Looks to me as if the price is being held around the .45 mark for whatever reason, buys much greater than twice the sells but no upward movement so far..
I’d guess it will stay in the .4s range but hopefully have another crack at .5 before the end of April and then the Q1 production update will be the catalyst for the next leg up.
Exactly right OfficeManager and the rampers/derampers cannot determine the copper price, the production figures, the resource upgrades and the profit margins that should be reported in the coming quarters and years and once they have been proven the SP will be multiples of today's price whatever nonsense is written on this BB and whatever the MMs do.