George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Copper is up again today and is closing in fast on $5lb. The copper price is now so far into the comfort zone for Rambler the gift that has happened over the past few days will look quite ridiculous in a few months time.
As the dust settles from the Friday RNs it’s looking less and less likely there will be a placing as it surely would have been done already and announced via RNs.
MU345 - that is a great summary of all the salient points, good luck trying to put a negative spin on that. This investment is about late 2021 into 2022 and beyond ! Saying that if we get short term finance in place along with a JV for LD we are looking at 1p in no time
Wow this is mental - can only HODL lol
There was something about this In the daily mail of all places yesterday, I thought exactly the same - ideal for Rambler !
Just watched an interview with David Hunter and he is saying gold @ $2500 by end of year - that’s a very nice bonus for Rambler ohh and gold at $10,000 by end of the decade. Copper to only go higher
https://youtu.be/7xeMbrhL6s4
Closing .47 (hopefully)
Two things panicked people in to selling -
1) the thought of another placing - my view is that whatever finance is taken on It should be sorted ASAP as scaling up production is number one priority along with making improvements for the future of the mine. They shouldn’t hold back because of a small shortfall of cash. Got to think of the big picture !
2) Reduction in production to lower than the lowest guidance figure- fortunately the higher copper price will cover the shortfall so perceived problem number 2 is not really an issue
The potential of a JV on currently non producing assets wasn’t even a thought a few months ago but with new higher copper prices this will happen now. So the JV and the higher copper price mean that we more than offset any temporary cashflow shortfall situation (which does not appear imminent). Really glad I didn’t panic sell on Friday and that I have had more of a chance to confirm my beliefs after re-reading the RNs.
Abrahim - Revenue for 2018/19 was 37 mil usd with 11 mil usd loss. Rmm would be showing a profit this year but the free cashflow will be invested for the future. It’s not hard to understand really
Forgot to add back Q1 so circa $60 mil actually which revenue wise must be one of ramblers best ever.
- 7 mil revenue in Q1 on based on 850 tonnes and some gold ...
March onward revenue should be based on 6600 tons new production guidance less Q1 production
*$7700 x (3000 tons left at 2021 hedge price) = 23.1m usd
*$9500 x 2600 tons (actual higher copper price) = 24:7 m usd
Add 3mil usd for gold plus plant sale @ 2 mil usd
I calculate revenue to be around 52 mil usd for the year which means things aren’t exactly bad! The 2020 hedge price was awful and that’s finished now anyone who says we won’t benefit from a rising copper price this year is an idiot.
Tardis without going back through all the RNs I believe we have circa 3000 tonnes left to sell at $7700 so that means that the other half of production this year will be at the spot price which is now drastically higher than ever anticipated even a few months ago. I assume all the free cashflow will be spent improving the mine infrastructure along with any new finance cash. There will be some kind of JV for little deer which will bring in unexpected cash, this combined with the mine set for an incredibly profitable 2022 will send the SP soaring and I’m certainly not selling up to chase rainbows elsewhere.
MU so the value of all the copper in the ground at little deer is circa $650 mil at today’s prices? If I’m correct a mining co could easily pay 5% (roughly $30 mil) of this and still have significant upside after extraction costs are factored in.
The more I think about it why would they kill the sp before doing a placing, copper now over $4.70 a lb the mines alone doing nothing would be worth the current Mkt cap. Debt is minimal so shouldn’t be a problem taking on 5/10 mil at a low interest rate.
5 mms now on .43 looks like they are getting read to move this up again now panic is over
As others have mentioned it’s unlikely that they would pre-announce a placing, it would appear that even if there was a placing announced now it would already be priced into the market due to the bloodbath after the RNS. My hopes are some potential JV partner will provide an upfront payment as they have “multiple unsolicited offers” which means demand is high for mothballed mines. It would make sense to take that money and optimise the Ming mine whilst earning cashflow from the JV. This could be transformative for the company, TB appears to be a matter of fact guy and the coms isn’t great but we have many more doors open to us now and the copper price will ensure that he is able to take the most favourable option on the table. Maybe a highly regarded institution wouldn’t lend to RMM unless there was a consolidation we don’t know. Would I be concerned if copper was $3 a pound yes I would but not at over $4.5.
My money is on next rns being a JV for little deer with an upfront payment to assist with Ming mine development.
So after today’s panic sellers are out we know the following :
1)copper going to surpass ath soon
2) the company needs some more cash for investment to generate massive cashflow for the future- debt will not be on punitive terms like before
3) we have a potential jv on our hands for a currently non income producing asset
4)circa 6 mil in the bank
Can’t see them doing a placing when consolidation is around the corner, maybe it’s just me but surely they have other ways to raise cash now the price of copper is at ATH
Or anty here is an alternative view, the short term punters will move on and the people who see the big picture will buy in. TB clearly doesn’t pump his RNS up like others on AIM - key takeaway for me is that we will have another mine in operation as quickly as possible “retaining a substantial interest” with some kind of JV happening soon. A few weeks ago the mothballed mines weren’t even really a thought. I have just added some funds to the wife’s isa to take advantage should the opportunity arise
Looks Like the Next Rns will be some kind of JV for little deer which will send this to the moon