Rambler Metal & Mining (RMM-LN) (RAB-CN)
The company achieved their production target of 241,080 dry metric tons milled at the Ming Mine, a 12% increase over fiscal year 2015. Achieved lower C1 costs of US$1.72 /lbs down from US$2.11/lbs in fiscal 2015. The copper grades of 2.12% and gold grades of 1.40 g/t were in line with guidance resulting in production of 17,412 dmt (2015-17,662 dmt) of copper concentrate containing 4,508 tonnes of copper metal and 7,129 ounces of gold. Milling recoveries for copper were 95.6% and 68.7% for gold. Concentrate grade averaged 26.9% Cu with 13.8 g/t Au.
Revenue for the year was US$30.3m. EBITDA for the year was US$6.1m , (2015:US$1.8m). Net loss after tax for the year was US$12.8m, mainly due to non-cash impairment charge on revaluation of assets in the amount of US$11.2m (loss of US$8.4m 2015). The net loss before impairment was US$4.9m, (US$0.2m profit 2015). Cash flows were US$4.8m (US$7.3m 2015). Net debt US$3.7m. Impairment charge was based on original pre-feasibility adjusted for 2016 depletion and took into account commodity prices, exchange rates and a pre-tax real discount rate of 10.71%.
Financing for Phase II expansion has been completed with CE Mining Fund II L.P. in the amount of US$15m. The expansion strategy is to fully optimise all available infrastructure through the integration of the new Lower Footwall Zone (‘LFZ’) mineral reserves; this will increase projected mine life to twenty-one years, this does not include shaft rehabilitation, ore pre-concentration or current exploration program.
The company plans to initially increase mine mill production to 1,250 mtpd by mid calendar 2017. The company improved throughput from 650 mtpd to 850 mtpd during the fiscal year. A view to further increase production to 2000 mtpd (Phase III) is under way with engineering studies on ore pre-concentration (DMS) and shaft rehabilitation. A detailed study at the mill has also been initiated, with a goal to increase gold recovery and production rate in the copper concentrator.
The company plans to change its financial year-end to December 31st, 2016.