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I can't imagine the sales figures will be significant yet, in these very early, covid impacted times, but they will come and with the distribution and retail partners now signed up, unmatched by any competitor, to sell the highest quality products in an enormously burgeoning market, this company will be huge. So buying in now is a great opportunity whatever the current figures look like. In just 3,6,12 months time the revenue and profits will increase exponentially with the roll out to thousands and then tens of thousands of stores.
I'm not surprised. Cannacord's estimate for the average copper price is $3.5 for 2021 (see link below). RMM's business case (investor presentation) was based on a price of $2.9 for 2021, so the revenue should be up by 20% based on price alone.
https://www.spglobal.com/platts/en/market-insights/latest-news/metals/011821-copper-price-to-rise-in-2021-analysts#:~:text=%22We%20now%20expect%20copper%20prices,mt)%2C%22%20Canaccord%20said.
With the new management team in place, including a CEO with turnaround expertise, I'm expecting a clear and professional update soon that explains how the infrastructure improvements are being progressed, the operating model made ever more effective and efficient and early signs in the updated production figures that show the TPD being produced is moving in the right direction and will very likely to hit the 1350 target soon. That together with the copper price holding up should allow good financial figures to be reported for the first time in a long time. Sentiment will then turn and we will be on our way, in my view, back to at least a SP that starts with 1p. GLA
Worth re-reading this RNS announcement on 5 March 2020 just prior to the Covid crisis.
Rambler Increases Mineral Resources at its Ming Copper-Gold Mine
London, England & Newfoundland and Labrador, Canada - Rambler Metals and Mining plc (AIM: RMM) ("Rambler" or "the Company"), a copper and gold producer, explorer and developer is pleased to announce increases in copper, gold and silver contained in estimated Mineral Resources at the Ming Copper-Gold Mine, located in Eastern Canada.
A depleted mineral reserve estimate is also being reported. This mineral reserve is not based on the newly updated mineral resource but rather a mining depletion from the previous estimate announced on 5 March 2018.
RESOURCE SUMMARY
· The new mineral resource estimate includes 24.506 million tonnes of Measured and Indicated Resources grading 1.70% copper and 0.34 grammes per tonne gold, containing 920 million pounds of copper and 264 thousand ounces of gold at 1% copper cut-off.
· Additionally, Inferred Mineral Resources include of 5.023 million tonnes grading 1.89% copper and 0.39 grammes per tonne gold containing 209 million pounds of copper and 64 thousand ounces of gold at 1% copper cut-off.
· Contained copper, gold, and silver in the Measured and Indicated category have increased 8 to 12% over the previous September 2017 Mineral Resource estimate, at 4 to 7% higher grades. (See Table 4 below)
· Contained copper, gold, and silver in the Inferred Mineral Resource category have increased 64 to 102% over the previous Mineral Resource estimate.
· All zones remain open for extension with further drilling, especially down dip from the current resource.
End
Seeing what resource the company has, please try and explain to me how its Market Cap can only be c. £35M?
With the much needed processing improvements, following the required investment in the plant, now made possible and the Copper and Gold price increases it must be able to operate very profitably, if not now, very soon!
Very much looks like a buy to me and the SP has been brought down to get it through.
Kempey - Absolutely, me too.
Todays chunky buys will no doubt be reported on Monday...
Typical AIM and MM management of the situation with a big rise and then consolidation with no news. There hasn't been a mass sell off. A this juncture c. £220k sells have gone through and £215K buys. To have that and see an 11% fall is nonsense but as I say that is AIM. When the real news comes and quarter by quarter should look impressive and progressively so the SP should absolutely re-rate. Based on the company's plan and projection the market cap should be at least £200M and there is a good chance that the copper price will be significantly higher than anticipated so the future should be very bright here - As ever we just need to be patient imvho.
Thanks
Any idea why there were so many sells today and the resulting SP drop?
https://gov.capital/commodity/copper/
If the prediction in this link is anywhere near accurate then AAU's future development, directly and through Venus Minerals, into copper exploration and mining would be enormously valuable.
https://gov.capital/commodity/copper/
Imagine the profit levels and RMM's value if this prediction is anywhere near accurate.
Absolutely. It would be good to test 0.40/0.41 again today or next week and get through it as quickly as possible in January and then with reported improved production rates and a continued high copper price we should see a steady rise (re-rate) throughout 2021. GLA.
Large buy orders from yesterday and today being filled. Hopefully the MMS can let the SP go soon.
Another day where buys have been significantly higher than sells and the price has been pretty much held. Just the way AIM is played. Bring on 2021 and some real news on production/progress.
Gavster - This company has clearly been a disaster for long-term holders and the SP has reflected that. However, it is now under new management, is funded, has great infrastructure as well as significant copper and gold. The prices of these commodities have grown significantly in 2020 and for many reasons they are more than likely to continue to rise. The company’s presentation show a clear plan to generate excellent returns over the next few years/decades based in a copper price of $2.90. The investment opportunity is about the future potential not the historical terrible performance due to the previous management and lower copper price. I certainly am not ramping the company I am just highlighting the facts and assumptions included in the company’s own plan/presentation.
Moneymaker, I absolutely agree. The article about the find at Sogat is very encouraging not only due to the size of the find but it again highlights how important gold exploring and production is to Turkey’s economy and the Turkish government.
https://www.hurriyetdailynews.com/turkey-reports-major-gold-discovery-161074
BluetigerUk, that cash flow projection used an assumption of a copper price per lb of $2.90. It is already $3.56 and likely to rise. The company is massively undervalued as it was nearly run into the ground and bust by the previous management. The plan now, with the necessary cash and funding in place, is to use their assets much more effectively and soon generate huge free cash flow. It made a lot of sense before the copper price rise but the price of copper now makes it totally compelling. I really think ‘true/potential value’ could be represented in the SP sooner rather than later.
Lafitte, thanks, patience is definitely a good idea for us who can see very significant long term gains here but because the potential upside is huge for RMM the SP rise could still be very impressive over the next 3 to 6 months prior to lock-in agreements ceasing.