Rambler Metal & Mining PLC (LON:RMM CVE:RAB) expects a better performance over the remainder of the year as the benefit of recent cost cutting shows through.
Norman Williams, chief executive, said: "At the half year mark, the operation is on target to meet the forecasted guidance for the fiscal year.”
“With a continued focus on cost control, evident by the reduction in costs year to date, we anticipate returning a stronger financial performance in the second half of the fiscal year.
The Newfoundland–based copper miner was affected by the slide in the price of the metal in the six months to January, especially in the second quarter.
Interim revenues fell to C$19.5mln (C$22.8mln) while there was an operating loss of C$787,000 (C$675,000 profit).
After tax and currency movements however, the net loss reduced to C$1.5mln (C$5.5mln).
Production in the second quarter was higher than a year ago and Rambler expects to increase output even more during the second half of the year.
"Revenues are down slightly from the previous quarter mainly due to a reduced copper grade and lower copper price realized during the quarter,” said Williams.
Cantor Fitzgerald said the results reflect a balance being struck by management between controlling costs and beginning the development of the Lower Footwall Zone at the Ming mine.
"Full year production guidance, which has always assumed an acceleration in throughput during the year, has been reiterated, which should result in a strong second half performance."
'Buy' with a target price of 24p, added the broker.
--update adds broker comment--