Second quarter losses widen at Rambler Metals

The TSX and AIM-traded company said its EBITDA loss was $1.4m, swinging from earnings of $1.2m a year ago, while its operating loss widened to $3.4m from $2.3m.

Losses per share were 0.5 US cents, compared to 0.1 cents last year, with cash flows from operations coming in at a negative $1.9m, swinging from $0.5m positive.

On the operational front, Rambler reported mill throughput of 94,589 dry metric tonnes (dmt) of ore, up from 86,895 dmt, with a copper head grade of 1.12% falling from 1.41%.

It said 3,643 tonnes of copper concentrate was produced with a grade of 28%, rising from 27%.

Direct cash costs net of by-product credits for the quarter were $3.66, rising from $2.44.

During the quarter, the company received $7.3m from the issue of shares from the exercise of 65 million warrants and the issue of 44.4 million shares from a private placement.

It also commenced a productivity improvement initiative in the mine, with assistance from a third party consultant.

The 24-week initiative was said to be focussed on productivity and efficiency improvements in three main areas - mine planning, mine operations and mine mobile equipment maintenance.

Rambler said the commitment of the project was to return the mine to profitability and positive cash flow at the nominal 1,250 dry tonnes per day processing rate.

“The second quarter of 2018 showed improved financial performance over the first quarter, driven by a 14% increase in mill feed tonnes together with higher copper and gold head grades,” said Rambler’s president and CEO Norman Williams.

“The operational improvement was achieved following the completion of the ventilation upgrade project in March 2018, which reduced operational delays due to blast gas clearing times in the mine.

“While operational performance improved, mine production remained the bottleneck for Rambler in the second quarter.”

Williams said the “single greatest limitation” on plant utilisation, and therefore concentrate production, was the lack of feed at target grade from the mine.

He added that in June, the company began a productivity improvement initiative in the mine, with assistance from a third-party consultant.

“High level targets of the project include mining and hauling a total 1,800 tonnes per day material, 1,300 dry tonnes per day of ore at an average grade of 1.4% copper and 500 tonnes per day waste.

“Since early June the mine has delivered the targeted total material movement during five of the 12 weeks of the project.

“As we continue to work towards embedding continuous improvement in mine planning, mine operations and maintenance we look towards sustaining all our targets every day.”