Member Info for Fukurokuju79

What are you thinking then Ant in terms of that consultancy.
Seems to relate more to transparency at co level a bit like UK banks do to perform kyc of retail customers; limited cos, charities and such.
To avoid conflicts of interest, corruption, bribery, Anti money laundering etc.

What you thinking?

LL, that's true about the operational viability statement in the RNS. You may well be right about RMM making some profits. I can't conclusively disagree of course.

The use of the words in the recent RNS about the cash being for the balance sheet and not about operational viability did also suggest the same to me.
Other elements of the recent RNS conflicted that for me, it wasn't overly clear to be fair. Plus the previous known C1 & C3 figures in the financials for 2021, against the backdrop of increased costs this year and lower copper price (significantly below the previously issued costs), are not stacking up ATM, to me, to demonstrate how it's a cash positive and profitable operation.

Even the presentation in June 2022 says they are building toward cash positive operations.

They've clearly made strong progress in mining production and consistency in almost (if not all) metrics. It's just the major cost saving initiatives like the ore sorter, location of mill, tailings, electrification, hoist etc are at study stage or not yet exploited.

No doubt on the resources in the asset(s), it's just the cost ratios seem very high at this stage without those key initiatives and Dev capex spends.

I'm certainly keen to see how those costs have changed, since the operational improvements, in the upcoming financials.
Clearly the share price will deserve to be catapulted up on resolution of the balance sheet weakness if it's largely debt based and of any evidence that the costs have come down to below the current copper price in the financials. Well find out over the next couple weeks.

I'm dubious based on what I've seen and so I think short term their is likely to be equity elements to the raise (which may be significant) and I'm not convinced the costs have reduced materially i.e. to a point where the all in costs of RMM are below the current copper price.

I'm not an expert in mining operations, or an accountant. These are just views as an experienced investor. They may well be wrong and no one including myself gets it right all the time.

I think mid to long term, dependent on the shape of the financing and the major cost initiatives being progressed, RMM can return healthy profits for investors. It's just a case of time and good financial and operational management.

Certainly looking forward to financials and updates to clarify the uncertainty.

Atb

In the 2021 financial report the 30.818 million usd / 7228 saleable copper gave a c1 cost of $4.26. C1 costs don't include things like dev, exploration costs or reclamation (I believe)

C3 (fully allocated costs) was $5.83

I'm not sure how much this has changed but we'll find out hopefully in the financials that are due imminently.

Improvements in mining efficiency and head grade'should' have created economies of scale but then inflationary impacts seem to have driven up costs.

Who knows

Happy I decided to buy back in yesterday.
I agree, it's time the share price ascends.
If the selling pressure is starting to subside it should be good timing for news.
Atb all

Last half year financials stated Direct cash costs net of by-product credits ('C1 costs') for the period were $3.01 per pound of saleable copper. This then went to $4.26 in the annual accounts.

Increases in costs may have this higher now or efficiencies may have it lower but my point is at this cost it's loss leading to take it out.

They can get this cost down with capex spending while improving grade and efficiency but the big question is where are the costs now, how much money do they need, by when and will they be able to raise it without the need to issue more shares.

I think they may need to go to equity markets for some and the amount they need may be significant. Until then RMM may be mining at a loss but we have no idea. Need more detail.

Good to get that confirmed and they can crack on.

I think Botswana announced they were creating a elec cadastre last year. Not sure I've seen one completed yet so assume it's still a work in progress?

Would be good to find out about the new licence. (although we have enough of it) ;)))

If it was a way of justifying just getting an ore sorter earlier it'd be like writing a death threat as a love letter tbh.

No ones knows didly until we have more financial information from the company. For example (illustration only / made up mums)... if it costs $3.80 to mine and we can sell at $3.50 then the fact we have billions in copper underground means we can extract it efficiently as a loss.

The market needs (and has needed for some time) to be advised what the costs are, and
what the operational improvements mean to profit.

All that can be done is wait for the financials. Then use that to determine shareprice forecasts etc

Stan you must really like the assets to choose to be invested everyday despite your clearly strong negative views of the CEO.

No not particularly Seiz. Just banter today I believe.

They didn't say it's disseminated either Ella ;)
However, I'm sure if it was massive they'd have issued a more specific and purposeful RNS about the drill. Early days, lots more to come etc.

Yep, short but sweet update: Bots license renewal; Casa cash in and progressing shares; visible sulphide mineralisation observed in the initial hole drilled through the D'Kar and Ngwako Pan contact.
Need Zambia to open up again and approve the licenses for the AA deal.......

I've tranched back in earlier this morning.
Will likely add in time.
Atb

Thanks Elprofessor.

If it comes down to equity then they would have to give consideration to existing shareholders for any serious amount.
1:1 RI or any other existing shareholder participation approach would be a decent idea in this event.
It'll boil down to urgency, process and perceived success of each possible avenue.
Atb

FTSE, I get your sentiment. It's a great mine and some great resources and grades in the ground. Trouble here isn't one of poor asset but economics.
If the cost to extract those billions in metals and run the business is greater than the price we can sell the for metals for then RMM will never be able to gather the capital to reduce those costs.
They would need either a higher copper price or capital injection to allow then to reduce the operational costs by spending to make improvements and reduce the AISC.
I'm very bullish on copper. However because of many factors RMM can't continue to gamble on the price of copper. Honestly it seems like theyve taken this taxt up until now and have finally said or realised they no longer can do this. Whatever that is paved way to this latest RNS.

Atb

Note I haven't included exploration spend in my list as that's optional. I'm assuming now they've realised a gaping hole they'll baton down and prioritise other tasks for the time being.

FTSE, the debt repayment may be that much but it all comes down to the cost to mine the copper they sell. In the absense of those figures the RNS suggests the current copper price isn't enough to support opex to run the mine, capex to improve the mine and a balance sheet to protect the mine let alone too pay back debt.

They need to get capex to improve the mine and reduce the opex/production costs for the long term. They need to hold the debt payments while this is happening. To catch up on any shortfall on accounts with suppliers and they need to have cash on the balance sheet to not be a low hanging fruit from competitors and be more resilient.

I agree equity won't be the default preference for RMM. Rearrangement with NewGen probably will plus any green energy funding they are eligible for.
Then it will be some form of alternative debt based financing e.g. alternative lenders.
Had they spotted this sooner, depending on the severity of the exposure, they could have looked at something like NON convertible bonds. A bit like pxc.
Hopefully they don't need to go down a placement route at this price but even that would be preferable to convertible bond route where the lender can exchange for shares at any time normally at a discount to prevailing price (death spiral).

Bottom line is RMMs strength is it's asset, it's weakness is its financial position as outlined above. Without more detail from the company any attempt to guess share price over any period is futile tbh.

Making this RNS announcement without a plan or detail is strange. I don't buy into a conspiracy plan to 'let mates in' that some share here. I can only assume they were forced to do so because of their precarious position, or it genuinely was poor and I'll thought out Comms.

Time will tell

Atb

Thanks IntheDeep.

I assume it's been delayed due to the broader constraints in supply/people etc?
Sounds good anyway and they are clearly still looking at methods to reduce costs which is critical at these times.
Ammonium Thiosulfate leaching and aerial tramming from the open pit to the processing facility etc

I'll wait until it's published then in due course.
Atb

Their....

I'm with you the Stan.

Atb

I agree strummer about what you said you think the issue is. I think previous CFO leaves and new CFO drains up uncovering a pile of poop etc. That's what I felt yesterday.

If they are going to pay off (restructure) debt to lower payments, to have capital to do improvements to lower cost of mining, shore up balance sheet, catch up on payments on accounts etc and resolve this on a permanent basis then we're talking significant money. Many multi tens of millions IMO..

The question is if they can do this via debt and if not how much equity. I'm uncertain in this regard. Clearly they'll favour debt, it's whether it's too much for NewGen or other lenders etc. On the flip it can be asset backed depending on any existing agreements etc etc

I'm sure there is a million creative ways a deal can be structured. It'll be a waiting game.
Toby hasn't strengthened the negotiating position with this RNS though.

Equity raise could be 50% could be 100%, could be 0%.

It worries me when people keep asking for info and target prices from others on these boards as they simply won't know. No one knows. This is the issue with the RNS.

Atb everyone