Rambler Metals & Mining reduces costs, meets production target in FY

For the year ended 31 July, earnings before interest, taxes, depreciation, amortisation (EBITDA) was $6.1m up from $1.8m last year.

The net loss after tax widened by 52% to $12.8m, or $4.9m before impairment, compared to the previous year.

The company met its production guidance targets as mill throughput for the year increased 12% to 241,080 dry metric tonnes while concentrate grade averaged 26.9% copper with 13.8 grams per tonne of gold and milling recoveries for copper and gold averaged 95.6% and 68.7% respectively.

Copper grades of 2.12% and gold grades of 1.40 grams per tonne were in line with guidance producing a total of 17,412 dry metric tonnes of copper concentrate containing 4,508 tonnes of copper metal and 7,129 ounces of gold.

The company said it has found exploration potential within the Ming mine footprint that could allow for further growth if proven by drilling expected in the 2017 financial year.

A total of 17,412 dry metric tonnes of concentrate was provisionally invoiced during the year containing 4,508 tonnes of copper metal, 7,129 and 37,701 ounces of gold and silver respectively at an average price of $2.20 per pound of copper, $1,179 per ounce of gold and $15.66 per ounce of silver, which generated revenue of $30.4m, down slightly by 12%.

Cash flows generated from operating activities fell 34% to $4.8m with cash generated relating to the operating profit and changes in working capital.

During the year the company secured financing from CE Mining Fund, to expand the second phase of the expansion strategy at its Labrador mine, to optimise available infrastructure through the integration of the new lower footwall zone mineral reserves, while the new projected mine life of the operation is twenty one years.

An annual impairment review of the Ming mine found that it remains commercially viable however as a result of the current market outlook regarding commodity prices, foreign exchange rates and assuming the current pre-tax real discount rate of 10.71% a provision for impairment was put in the consolidated income statement reflecting the non-cash revaluation of assets.

President and chief executive Norman Williams said: "With the project financing we will continue to focus on accelerating the phase two development, allowing the mine to deliver increased tonnage to surface.

“We are targeting our first expansion milestone of 1,250 metric tonnes per day from the mine by mid calendar 2017. With the operation team focused on delivering the production increase, we look forward to further engineering and evaluation of two very exciting opportunities around shaft rehabilitation and ore pre-concentration.”

Shares in Rambler Metals and Mining were down 4.23% to 6.34p at 0904 BST.