Member Info for pedro57

I was on the call and what I viewed as extremely positive was the CEO talking about $2 per pound cash costs ultimately possible for Ming. I have struggled with modelling C1 costs and the $2 is much lower than I expected them to envisage.

In their last quarterly update when they withdraw guidance RMM stated the following "...will not provide an updated guidance until such time as funds are received and an updated work programme has been thoroughly re-developed and reviewed. Notwithstanding, it is anticipated that the full copper forward sale contract for 2021 will be delivered into this year". When do people here expect an update now where we received the money? This would be a major catalyst, from the share price rise recently it seems this could happen soon. Thank you for your help!

Hi, great to see the recent upward move. I am a big shareholder there and enjoying the more active and useful debate. I have noticed how many have done great work on the revenues to expect for RMM, which is easy to model. Where I have struggled is the C1 to apply? I have asked some time and will again what are people's view on a reasonable C1 cost to expect for 2022 and 2023? This is very important as it really is EBITDA and net income that will drive the share price not revenue. Also very important and often forgotten we have huge tax loss carry forwards and there will be no tax for a few years meaning high EPS. The value of the tax loss carry forward is larger than the market cap.

Hi afbouer I am impressed with your valuation. I was attempting the same today but struggling with what C1 cost to use per lbs. If possible can you please let me know what C1 you were using in 2022 and 2023 and beyond (do you deduct gold credit as this is what financial results assume for C1)? I was assuming no near-term tax due to accumulated tax losses (big positive factor for valuation). Also what assumption did you make on days of operation per year does 355 days make sense?

I am a big holder in RMM and could not be happier. The closing of the debt financing already derisks RMM substantially, but I also though the 1H21 results announcement was much better than expected driven by three statements: 1) "most of the remedial works have been completed by the end of Q3 2021". 2) "By the end of Q4 2021, we are targeting completion of the development for 735L and 760L of the Lower Footwall Zone and 770L and 790L of the Upper Footwall Zone". 3) "We look forward to crystallising our improving performance into positive cashflow at the end of 2021 from which all of our stakeholders will benefit.”. I read this that the remedial work is essentially done, we are getting 4 stopes by end of the year and the comment of positive cashflow by end of 4Q21 is slightly earlier than previously indicated. This should rerate aggressively into year-end. Question to the RMM experts what net income are you getting to in 2022 and 2023? Modelling the revenue line is relatively easy but struggling with C1 costs and other expenses. What are you assuming for C1 in 2022 and 2023 and for other expenses (I was thinking $5.5m per annum for administrative expenses)?

I have been adding at this level and will do so every month into year-end already being a large shareholder. Having criticised management in the past I now see communication as good. Yesterday’s statement flagged three big catalysts this month: “We will be making further announcements on our drilling, the Little Deer project and the financing within this quarter.". Referring to Little Deer as a project now tells you all you need to know. We now have a clear plan and excess financing to make it happen. You would never get financing in excess of market cap if the prospects were not very good here. This is priced as distressed company, which is not justified. We will see rapid recovery in 2H21 and the turnaround continue. This is an amazing investment proposition. I am also keeping my fingers crossed that board improves back to the good board it used to be with actual analysis.

I have been adding a little bit at these levels and luckily built most of my position before the hype. Their careers section is even looking at a summer intern which you would not be going for if there really were big terminal issues. Also having watched the AGM the management team did not seem that stressed. Some of the questions from the Q&A even came from me. I would however ask for more people on this board to reach out to IR as I have stated it again and again also to the company that the communication policy is subpar. You would need to be much more proactive communicating rather than the radio silence. There is no excuse for letting the share price slide as management is doing. There is a big opportunity here with the next RNS that frankly I am not even sure management understands.

There is a big opportunity with the next RNS to improve sentiment. I hope management spend a lot of time thinking about the RNS as in my view the May RNS was dreadful. Rather than blaming investors for getting ahead of themselves there is also blame for management for not communicating optimally, which is what a share price below the recent placing price tells you. Since February placing detail has been light on progress getting mine back to where it should be. At a time when there should be a RNS every 2-3 weeks communicating progress there has been radio silence. It is a confidence game and more should have been done my management to address this.

Quick question, has any of the large holders (particularly from Discord group) checked in with IR? The communication from the company has been subpar in recent months and I was wondering what the company was going to do about it? They would need to come out with the promised end of 2Q21 update sooner rather than later. Investor confidence at this early stage is key and I do not think communication has been good by RMM? I am continuing to build position, but will be looking closely at next RNS and hoping for step-up of communication which has been subpar since the Feb raise.

It is interesting that Rambler now is looking for a graduate in finance helping with “ Assist with coordinating debt financing and debt service payments with external vendors”. This would imply some form of debt or vendor financing in the future. Generally I thought if there was a need for a placing it would have happened long ago. There are also a continuation of several more positions implying operations are being ramped up. Generally from 2H21, which starts in three weeks there should be more meaningful operational recovery. This is a good level to top up, which I am doing. I have however stated many times and still believe that communication could be stepped up by RMM. This is still a time where confidence is very important and RMM could be releasing more information rather than dropping the bombshell RNS they did in early May and then switch to radio silence.

I agree that communication could and still could be handled much better by the company. It is all about confidence and RMM needs to much more proactive talking about the turnaround or follow up where we are with financing. There is a lot the company could do update pictures on website, update presentation from autumn last year, communicate something positive that has happened. The share price is important and cannot be ignored to the degree that it is by the company. To have copper prices where they are, some mining peers rising every day, etc and the RMM share price in the doldrums is a joke. Nevertheless, I am adding here as the weakness is all overdone, but this is a result of management miscommunication.

I joined into the AGM as well. I thought they gave the impression that turnaround is continuing and all on track and management seemed relatively confident. The reality is we should know soon what short-term financing will be and think given the time frame since the announcement it will not be a share placement (you would have done this weeks ago).

It is very apparent that this job posting is using much more positive wording to advertise the role and company. I do not think they would have changed the text without feeling much more positive about turnaround progress and financing. This is exactly the kind of wording they should use in future RNS, which I would not be surprised to see more of as current share price is ridiculously low compared to 2H21 and 2022 outlook. I am participating in video feed of AGM, which is the big event next week and should give us more colour.

These are good levels to top up. There is pressure on management here to deliver more clarity with the AGM, which I will listen in to. Personally and I have stated this before management needs to be more proactive with communication. It is all about confidence and they managed to blow that up. I have reached out with this issue to them to discuss at AGM and I would suggest other shareholders do the same. They would need to release updates all the time, new picture on website, new presentation, etc. rather than the radio silence.

The more time passes without the dreaded capital increase the more my view is that it will be a different financing option that will be used. The reality is we will be throwing off cash from 4Q21 and even more next year. This would in theory allow for other forms of required cash inflow to get mine up and running. Has anybody here put in questions for the AGM, which we are allowed to do based on information in last week’s AGM release. I did put a few questions and assessment to company as I feel more can be done to keep us updated and excitement building (at this early stage keeping and maintaining confidence is key).

I agree with this statement. The prospects are very good. I have had issues in the past with the lack of frequent updates which keeps shareholders in the dark of where we are. Currently into year-end it is all about confidence in the turnaround plan. I would suggest rather than posting on this message board for big shareholders to reach out to the company. We have the option to put questions into the AGM. I have sent them my thoughts.

Copper prices are continuing their rally up ~3% today. We’ve also not had the dreaded raise today; with copper this strong and high any incremental finance that is needed to move to full production should not be that hard to get. At current share price we are nowhere near reflecting what this high copper price means for RMM.

One thing for sure the Friday announcement has been a heavily debated event with discussions continuing into Sunday. Generally I would be surprised if you do a placing after announcing and bombing out the share price (but this is AIM). In theory there are many options and I would prefer debt than dilution as in theory this could be repaid easily next year. With copper prices where they are RMM is in a good place despite the teething problems of getting everything going again. I do however have to say that communication has been suboptimal at RMM and one could avoided Fridays issues by continued updates where we are with turnaround plan. I am going to reach out to IR and put a question in at AGM that communication needs to be stepped up.

Copper prices are up another 3% today having reached new all-time highs yesterday. Copper prices are likely to continue to rise. This should open up a lot of opportunities for RMM including more favourable financing.

I am sticking with my large position and did not see today’s announcement as that bad particularly as it flagged potential development of other big copper assets RMM owns that most did not even know existed and reiterated turnaround plans albeit with a delay. I do however agree here that communication of company could be better. We are at a critical time for the company and would need more frequent updates particularly if there is a deviation of plan. I am going to flag this to company via ability to put in questions at the AGM. With copper reaching new all-time highs the share price should be much higher and this is something that would have been the case with managing communication better.