logo-loader

Rambler Metals focused on expansion after tough year

Last updated: 12:47 08 Sep 2015 BST, First published: 07:47 08 Sep 2015 BST

1-186979_55ee868adc42a
Recoveries in the year to July were better than expected

-- adds broker comment, share price --

Rambler Metals (LON:RMM, CVE:RAB) achieved most of its production targets in 2015 despite a challenging year as the copper price slumped.

Copper and gold metal produced was the one miss, with 4,733 tonnes of copper slightly below the forecast of 5,400-6,700t and gold production of 5,355 ounces also less than the 5,600-6,600 oz forecast.

Copper grades undershot in the final quarter though recoveries in the year to July overall were better than expected. Silver production exceeded targets on all fronts, though it is only a small part of the concentrate Rambler produces from its Ming mine.

In August, the first month of the new trading year, copper grades recovered to 2.55% as higher grade ore was processed as part of the revised mine plan.

Norman Williams, chief executive, said it had been a challenging year with the slump in the price of copper, but actions to streamline the costs at Ming, in Newfoundland, had been beneficial.

"We began the 2015 fiscal year knowing that it would be a transitional step forward for the business as we worked towards finalising the Lower Footwall Zone pre-feasibility study.

“With this work now completed, and final results released in July, we are extremely pleased with the staged, low capital expansion strategy to optimise the operation." 

Broker Cantor said that Rambler meeting its throughput, grade and recovery targets was a respectable result given the rapid changes the company had to make as the copper price fell.

For the current year, management is guiding towards production of between 17,000-21,000t of concentrate, containing 4,500-6,000 copper, 5,500-6,500oz gold and 42- 57,000 oz silver.

“With a difficult year now passed, the focus for the company and the market should be firmly on the development into the Lower Footwall Zone,” said Cantor, which kept its 24p target price.

Shares rose 1% to 8.2p.

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

45 minutes ago