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A number of potential catlysts here which would send the SP soaring, all of which could drop anytime.
Without considering any progress on the other fully owned assets beyond the Ming Mine.
GLA.
There are certainly some chunky buys taking place this morning. Very nice to see.
Argubly now is probably the best time to buy. With the investment case de-risked and before it makes a substantial move North.
Interesting to see if low/mid 30s are assaulted again this afternoon. GLA.
At least knocking on the door of 30.00.
Simply excellent news on Friday afternoon, which means Rambler Metals & Mining is now a completely different beast altogether.
- Cu price remains sky high with inventory levels worsening and now sitting critically low.
- Stunning grades; e.g. '11.00 metres at 4.32% copper, 5.00 metres at 8.45% copper, 48.59 metres at 6.30%'
- Existing hedge due for completion in Q4 2021.
- Substantial funding now allows for progress on other assets, likely much more favourable terms if JV.
- tpd to increase heading into 2022 and throughout.
- Multiple stopes available shortly
On announcment of the bridging loan the SP surpassed 25.00 with ease. I expect 30.00 will be tested if not broken early next week. However, it's what this funding means for the longer term prospects of the company, allowing it to comfortably turn into a profitable miner. After the inevitable strong rise over the next week or two I'd expect a long & consistent uptrend as mine development progresses, margins improve and substantial revenues are attained.
I have been invested here for little over a year, fair to say in that time the compnay has never been in a better position, especially with such a favourable macro-environment. I just hope im able to add to my already not so insignificant holding under 30.00. Because this could really rocket in the near term. GLA.
Can you believe folk wanted shares cheaper than 20.00. I'm more than happy to be paying under 30.00. As has been pointed out 30m mcap is a bit daft really. Especially once you know roughly how much revenue will be generated per quater in 2022. I'd suggest it's now also in the best interest of the loan provider to have that wrapped up ASAP.
I had previously planned to slice some shares in the mid 30's. However given how the bigger picture is starting to look, I think I'd be selling myself far short!
With copper at $4.80/lb and Rambler announcing 'again' quite phenominal drill results, i'd say financing is more likely to occur now than ever.
Shortly. Multiple high grade stopes available, hedge complete and selling at full Cu price. 2022 is simply mouth watering. GLA!
Copper up 4% to $4.50. Hedge nearing completion. High grade copper deposits due next. Multiple stopes online shortly to drastically minimise any potential risk. Vastly increased TPD heading into 2022. Current market cap £27.0m, that's is less than what has been invested into the Ming Mine in the previous 18 Months alone.
As we have seen today, it will take very little to move the SP severely northwards.
As everyone is aware, once that finance is signed off, this will no doubt become a very successful company, whilst being this close to generating substantial revenues even if the highly unlikely scenario occurs and it doesnt, I still see significant upside from these levels.
Lots of positive information currently overlooked with regard to progress on mine development, eventually the market will soak it up, progress on other assets could occur next year post financing completion, providing yet more upside. GLA.
Was never going to stay in the mid 20.00 range for long. Well done to all those were able to pick up shares. Expect the SP to extend gains on approach to 2022 Where we have multiple stopes open and will be selling unhedged at almost twice current tpd. Plenty to be excited about here. GLA.
- Copper remains expentionally strong at $4.35. Backed by a constantly improving macro environemnt.
- Significant amounts of development work have now taken place.
- Plenty of hints that there is huge value in Little Deer and Whalesback deposits, interesting to see how these come online.
- As each day passes we move closer to completing the hedged contract. To begin selling at the current Cu price, at which point saleable metal will be far in excess of current levels.
- The current £28,000,000 mcap. Which wouldnt even cover a firesale of the assets in current condition.
- A highly experienced BOD who I have complete confidence in to complete the turnaround.
- All issues encountered so far have had short term implications.
Meanwhile, the downside is the current SP for traders. However, this would be a concern if there was a potential need to raise further funds, however, should the turnaround proceed as planned Rambler will never likely have to raise again.
"2022 will see steady production rates of ~1,500 tpd through H1, with rates climbing through H2 to reach 2,000 tpd by end of Q4 2022. The contractor development project is expected to finish in Q1 2022 following which company crews will maintain development at ~5,200 meters for the remainder of the year."
Simply phenominal numbers for a company valued at less than a pittence. I'm just concerned as to what they're going to do with all the money!
I could consider a bearish scenario if copper was $3.00 or less. However, at its current level and forcast to rise it makes almost anything here achieveable. GLA.
With regard to the proposed 'shorters' here, lol. They're uninformed 'traders' who panicked on Friday and sold after the drop. Now they're doing all they can to justify their decision to sell an undervalued producing copper mine at the foothills of a commodity bullrun. They'll await the next positive RNS, scramble to get back in paying a 30% premium, then disclose to the board that the company is in fact "going to the moon". They should be on a stage.
The reason they're so persistent with their fearmongering views is because deep down they know they're fighting an uphill battle, they're just trying to convince themselves otherwise.
Anyhow, nice bounceback today. Picked up another chunk at 0.38. Class.
The last time I was this confident on a share was ODX. Bought at 45.00, rose to 90.00. Dropped to 33.00. Sold 6 months later for 120.00. I was listening to deramping from 33.00 to 120.00. Made no impact on my decisions. Usually when they arrive in droves it suggests a great buying opportunity has arrived.
With regard to RMM. Since friday I have almost doubled my position with a view to add further. I only have aspirations to increase my holding for the remainder of 2021. Like many, I viewed the RNS as a positive which it was for the long term holder, Just not for the short term penny flippers (you'll notice all the moaners are predicting tomorrows SP etc.) . If you've done your dd and you're greedy when others are fearful you wont go far wrong. Intrinsic value will be achieved.
Toby Bradbury "2021 is a year of re-birth for the company". All about setting up for 2022 onwards, although, as mentioned this years revenue will still be susbtantial even at the hedge of $7,700 (which at the time, only recently, was a great price), now what remained of the 2020 hedge at $5800 is also completed. 2021 Q4 saleable metal potentially sold at current Cu cost also, dramatically improving bottom line.
Initially focusing on the Ming Mine; Cu mineral reserve of $1,541,600,000 ($4.70/lbs) & Au minral reserve of $209,190,000 ($1835/oz). Not including mineral resoucres inferred. We're aware of potential bonanza grades yet to be further exlored.
Rough forecast Production for 2022;
10,500/t saleable Cu @ $4.70/lbs Cu Cost = $108,798,129
5,500/oz saleable AU @ $1835/oz Au Cost = $10,092,500
Total Revenue = $118,906,629
Not necessarily best case, 'actual' could be greater, just a prediction on readily avaulable info.
"Completion of the purchase of the 2,200 tonnes/day Duck Pond pland and planning for its dismantiling and relocation to the Ming Mine site, beginning Q3 2021. The asset is a cornerstone of the Company's strategy to further expand operations and reduce operating costs" - Will also result in substantially reduced production costs, improving bottom line.
Personally, dont feel the BOD would have disclosed the need to raise funds prior to carrying out a placing, I have never seen this before. Numerous "financing options" available. Luckily for buyers. The market has priced in dillution with a circa 38% drop from last week. If rambler achieve a JV or a short term loan on competitive terms expect an instant re-rate. The company still has around 15/20% of its Mcap as cash. I think the proposed fundraising is to get copper out of the ground quicker than initially planned imo, given particularly, the meteroic rise of copper.
The above does not also incorperate Little Deer & Whalesback which have brilliant strategic locations. Combined resource of 2,708,000/t Cu @ 2.16%. Circa $589,240,740. Inferred resource of 4,191,000/t Cu @ 2.07%. Circa $951,579,710. Hardly a shock there has been "a number of unsolicited offers of interest". "actively seeking arrangements to advance these projects while retaining *signifiant interest*".
Hopefully the above puts it into perspective, that a minor 'delay' in the intial months of a turnaround year is incredibly insignificant over the longer term prospects of the company which remain impecible, especially under such highly experienced, reputable management behind a constantly strengtheneing macro invironment for all of ramblers saleable metals. As the turnaround continues, the fundamental value here rises as we head towards 2022. Especially with the commodity supercycle gathering pace. GLA.
Too much focus on the SP volatility rather than fundamentals by some imo. Mine turnaround continues. Prospects couldn’t be in better hands, so we await further updates. GLA.
“Doesn't the revelation that interest has been shown in Little Deer , feel like a smoke screen?.”
Revelation? Not sure I’d say it was a revelation for a “number of unsolicited offers” when copper has just broke the ATH. Never been a better time RMM to conduct a JV. As a shareholder I’d expect to be made aware of this so wouldn’t class it as a “smoke screen” either.
“Is the 100/1 rerate part of an equity fund raising plan ?......“
International banking institutions often require the reorganising of shares in issue prior to any potential funding facility. “ The Directors consider that having a more manageable number of shares in issue post Consolidation is in the best interests of the Company and will better allow it to progress its future growth and development objectives.”
The financing is a short term matter. There are multiple options available. Given the future prospects of the fully developed, operational mine(s). I’d expect many suitors are available to provide funds on very competitive terms. It may be that it’s a combination of options.
Most importantly, it’s about achieving the fully operational mine as soon as possible, particularly prior to 2022 when copper will be no longer sold at the hedged $7,700/t. Additional finance to make that happen is very insignificant in the scheme of things.
I also added considerably on Friday. Removing circa 35% of the Market capitalisation from last weeks highs due to ‘delays’ during a turnaround is severely exaggerated. Not to mention the numerous positives within the RNS which have gone completely overlooked (for now).
You’ll struggle to find a better long term investment:
- Very Experienced, reputable BOD.
- Phenomenal Macro Environment.
- Safe Jurisdiction.
- fully owned assets with significant proven resource.
- Current Mcap of a junior explorer.
27/04/21 Toby Bradbury “ 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."
Only those with a really short term outlook have a glass half full at the moment. For me 2021 is laying the foundations (although substantial revenue will still be generated). From 2022 onwards we are really are aiming to be in an excellent position.
“On our projects, we are busy with preparations for ore sorting at the Ming Mine which will improve margins and profitability from 2022, once the developed state of the mine has been re-established.“
In years gone by, forecasts for Ramblers saleable metals were “The estimate assumes a long-term metal price US$2.79 per lb. copper and US$1,100 per oz. gold”
However they’re currently US$4.765 per lb ($10,470/t) copper and US$ 1830 per oz. gold. With forecast for copper to even double from current levels.
“The world risks "running out of copper" amid widening supply and demand deficits, according to Bank of America, and prices could hit $20,000 per metric ton by 2025.”
“Global copper demand from wind, solar, EVs and battery technology alone is expected to grow by nearly 600% by 2030 to 5.4mt per year.”
“The current pipeline of projects likely to start producing in the next few years represents only 2.3% of forecast mine supply. This is well down on previous cycles, including 2010-13 when it reached 12%. Projected capital expenditure is suffering as a consequence.“
All about positioning the company for the years ahead. 3x 100% owned copper mines all of which in time will generate substantial income.
The need for some additional funds in a turnaround/ development year is nothing short of trivial.
“The combined Indicated Resources at Little Deer and Whalesback currently stand at 2,708,000 tonnes grading 2.16% copper (129.1 million pounds of copper) and Inferred Resources stand at 4,191,000 tonnes grading 2.07% copper (191.3 million pounds of copper).”
“A positive Preliminary Economic Assessment (PEA) was completed on the Little Deer copper deposit, on a stand-alone basis, which demonstrates the potential technical and economic viability of establishing a new, profitable copper mine at current copper prices.”
“Both deposits remain open along strike and at depth and the potential exists to expand the known mineral resources through additional drilling.“
2013 - Average copper spot closing price = $3.3385
2021 - current copper spot closing price = $4.7650
https://www.canadianminingjournal.com/features/little-deer/
“ The Company has received a number of unsolicited offers of interest in its Little Deer and Whalesback Mines and is actively seeking arrangements that can advance these projects while retaining significant interest. These deposits have existing NI 43-101 Resource Statements which are in the process of being updated.”
And yet the current measly Mcap probably won’t even cover this years (turnaround) revenue from the Ming Mine alone... I love it when buying opportunities are so blatant! GLA.
I agree. That’s a great point Broker.
Today was only a bad day if you needed to sell to fund other things. If you’re in a position where you don’t need to sell why on earth would the share price bother you. If anything a good day for me as I was able to add. Fundamentals remain the same if not improved.
In the future when the whole world focus is on producing renewable energy and electric vehicles to save the planet, copper is priceless, Rambler are producing ore at breakneck speed. It doesn’t take a genius to realise that buying in here will cost an absolute premium. (Copper +3% today wow).
I remember when I was invested in VAST they attempted to achieve an asset backed debt facility but were rejected and needed to carry out a consolidation.
Imo. This is potentially the reason for the consolidation and Rambler have never been in a better position to achieve a favourable asset backed debt facility which would be hugely positive for speeding up the turnaround and maximise production whilst copper is soaring.
The fact the need for further finance was pointed out on the RNS also makes me believe further that a placing is highly unlikely. As always imo.