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Rambler Metals expects to hit production target

In what is a normally quiet quarter to January, Rambler processed 56,500 tonnes
Rambler Metals expects to hit production target
The company is on track to meet production guidance this year

Rambler Metals and Mining (LON:RMM CVE:RAB) notched up one its best operating performances since production started at its Ming copper mine in Newfoundland.

In what is a normally quiet quarter to January, Rambler processed 56,500 tonnes compared with 58,000 in the previous three months.

Copper grades fell, which resulted in a drop in copper produced to 960 tonnes (from 1,272) while there were credits of 1,889 ounces of gold and 12,860 oz of silver.

Norman Williams, chief executive, said: “In the past we have normally seen a sharp decrease in throughput during this quarter due to winter conditions; however, as part of our focus on continued improvements at the mill we were successful in maintaining similar production levels seen in the previous quarter. 

Williams added the company is on track to meet production guidance for the fiscal year.

Mill throughput will continue to increase from 700mln tonnes per day (mtpd) in January to 850 mtpd with a steady blend of ore from both the massive sulphides and the Lower Footwall Zone, he said.

Rambler is forecasting copper production of between 4,500 and 6,000 this financial year with added gold and silver of 5,500 to 6,500 ounces and 42,000 to 57,000 ounces respectively.

House broker Cantor said: "Having learnt and adapted from its experiences of operating the Nugget Pond Mill during the harsh winter months in Newfoundland, the plant has performed better this time with throughput levels maintained q-o-q, which puts RMM on track to meet full year production guidance.

"With management reiterating their expectation of meeting full year production guidance we reiterate our BUY recommendation and our TP of 24p," said analyst Asa Bridle.

Shares rose 9% to 3p.

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