Financial Results for Year Ended 31 December 2019
11 May 2020
Rambler Reports Financial Results for the
Year Ended December 31, 2019
London, England; Newfoundland and Labrador, Canada - Rambler Metals and Mining plc (AIM: RMM) ("Rambler" or the "Company"), a copper and gold producer, explorer, and developer, today reports its audited financial results and operational highlights for the year ended December 31, 2019 .
2019 Full Year HIGHLIGHTS SHOW INCREASED PRODUCTION AND DECREASED COST LEADING TO NARROWING LOSSES COMPARED TO 2018
· Total throughput for the year rose to 406,298 dry metric tonnes ("dmt") (2018: 364,176 dmt), a 12% increase which represents the highest annual throughput on record;
· Copper head grade rose to 1.45 % copper (2018: 1.24 % copper) while gold grade was nearly unchanged;
· Saleable copper metal rose to 5,299 dmt (2018: 4,187 dmt), a 21% rise and saleable gold rose to 4,887 ounces (2018: 4,189 ounces), a 17% rise;
· Revenue for the year was US$37.1 million (2018: US$29.7 million), a 25% uplift despite lower copper price;
· Cash production costs for the year were US$34.5 million (2018: US$31.2 million). Net direct cash costs net of by-product credits ('C1 costs') for the year were US$2.77 per pound of saleable copper (2018: US$3.52) , a 21% decrease;
· Operating loss for the year narrowed to US$11.4 million (2018: US$17.2 million). Losses before interest, taxes, depreciation, amortisation ('EBITDA') for the year narrowed to US$1.3 million (2018: loss of US$7.5 million);
· The 2019 financial performance was achieved in a lower copper price environment than in 2018. Average copper price for the year was US$2.73 (2018: US$2.93) per pound of copper and US$1,389 (2018: US$1,265) per ounce gold ;
· Diamond drilling in 2019 intersected significant high grade intercepts of both Massive Sulfide and Lower Footwall Zone (stringer) mineralization.(see press releases of November 4 and 26, 2019).
SUBSEQUENT EVENTS
· In March 2020, the C ompany incorporated 2019 diamond drilling into a revised Mineral Resource estimation (see press release on March 5, 2020). The revision established significantly increased Indicated and Inferred Resources and defined a set of +2% copper mineralized bodies that are the focus of our current mine planning and operations to increase the average grade of mill feed to about 2%.
· In March 2020 the Company signed a non-binding Letter of Intent (LOI) with Maritime Resources ("Maritime") (see press release of March 12, 2020). The non-binding LOI includes an exclusivity period of twelve months for Maritime to evaluate Rambler's Nugget Pond Gold Plant for the purpose of processing feed from the Hammerdown gold project and to complete a feasibility study with the option to negotiate a purchase agreement during that time.
· The impact of the Covid-19 pandemic has been significant in the resource industry, most notably in the way work is accomplished within physical distancing guidelines. Significantly, there has also been an economic slowdown leading to a lower copper price. To manage these impacts, Rambler has scaled back production and reduced staff numbers, whilst also taking advantage of the Canadian Government wage subsidy scheme. Production will slowly ramp up again as the copper price improves, with the aim to be at 1,500 mtpd by Q4 2020.
· In April 2020 the Company, via its wholly-owned subsidiary, Rambler Metals and Mining Canada Limited, received a bridge loan from CE Mining III Rambler Limited ("CEIII") of US$830,000 bearing interest of 10% per annum in support of short-term working capital requirements at its Canadian operation.
KEY annual FINANCIAL METRICS ($US)
|
|
2019 |
2018 |
|
Revenue |
$37.1 M |
$29.7 M |
|
Cash Production Expenses |
$34.5 M |
$31.2 M |
|
G&A |
$4.5 M |
$5.8 M |
|
EBITDA |
$(1.3) M |
$(7.5) M |
|
Operating loss |
$(11.4) M |
$(17.2) M |
|
Loss before tax |
$(12.2) M |
$(18.4) M |
|
Loss after tax |
$(12.2) M |
$(20.0) M |
|
Loss per share (US$) |
$(0.01) |
$(0.03) |
|
Cash Flows from Operations |
$(3.2) M |
$(2.3) M |
|
Cash cost per lb of copper, net of credits (C1) (US$ per pound) |
$2.77 |
$3.52 |
OPERATIONAL HIGHLIGHTS
Table 1 - Ore Throughput and Concentrate Production Summary for Fiscal 2019
(See Note 1 below)
|
THROUGHPUT AND RECOVERY |
Q1 |
Q2 |
Q3 |
Q4 |
|
Fiscal |
|
Fiscal |
|
|
2019 |
2019 |
2019 |
2019 |
2019 |
2018 |
||||
|
|
|
|
|
|
|
||||
|
Dry tonnes milled |
98,411 |
112,679 |
106,783 |
88,426 |
|
406,298 |
|
364,176 |
12% |
|
Copper recovery (%) |
96.3 |
93.7 |
94.0 |
91.6 |
|
93.9 |
|
96.3 |
-2% |
|
Gold recovery (%) |
69.4 |
68.4 |
76.0 |
71.9 |
|
71.4 |
|
70.7 |
1% |
|
Copper head grade (%) |
1.33 |
1.40 |
1.53 |
1.54 |
|
1.45 |
|
1.24 |
17% |
|
Gold head grade (g/t) |
0.58 |
0.60 |
0.59 |
0.59 |
|
0.59 |
|
0.57 |
4% |
|
|
|
|
|
|
|
|
|
|
|
|
CONCENTRATE PRODUCTION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper grade (%) |
26.2 |
27.2 |
29.5 |
27.8 |
|
27.7 |
|
28.1 |
-1% |
|
Gold grade (g/t) |
8.3 |
8.6 |
9.2 |
7.4 |
|
8.4 |
|
9.4 |
-11% |
|
Dry Tonnes produced |
4,797 |
5,425 |
5,212 |
4,490 |
|
19,924 |
|
15,525 |
28% |
|
|
|
|
|
|
|
|
|
|
|
|
SALEABLE METAL PRODUCTION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper (tonnes) |
1,207 |
1,417 |
1,475 |
1,200 |
|
5,299 |
|
4,187 |
27% |
|
Gold (ounces) |
1,128 |
1,321 |
1,379 |
1,059 |
|
4,887 |
|
4,189 |
17% |
(g/t = grammes per tonne)
Andre Booyzen, President and CEO, Rambler Metals & Mining commented:
"The production growth and improved financial performance during 2019 once again showed the positive impact of our changes to the management and operating team and the impact of our ongoing continuous improvement efforts. Our whole team remains focussed on safe production and achieving our targets in all areas of the business. In 2019, we set new records for monthly underground development rates, despite some challenging ground control issues we encountered in Q3 2019. Further improving and sustaining these high development rates will support reaching our eventual target of 1,500 tpd mined at 2% copper grade. Later in 2020, we will be engaging external mining contractors to accelerate our underground development and get us to the developed state which will support growing production at higher grades from more production stopes."
"Developing our team members has continued, as has company-wide cultural changes which has begun creating positive momentum in our workforce. We are seeing low staff turnover and low absenteeism. Our commitment to the local economy remains, with over 95% of our workforce residing within one hour travel from the operations, and the majority of our operating and capital expenditure remaining in Newfoundland."
"We achieved our 2019 guidance tonnes of ore mined, copper grade and saleable copper produced. However lower than expected gold grades resulted in less than forecast saleable gold ounces. During 2019, we completed work ahead of schedule on the new Camp Pond tailings facility and we have been depositing tailings there since July 2019. The tailings project included some critical electrical and water control components necessary to sustain milling rates in excess of 1,400 dry tonnes per day. These were in place and operational by the end of August 2019. Further work is planned for both our tailing facilities in 2020. We also replaced some key mining equipment that had reached the end of its useful life, as well as added to our underground fleet to enable longer hauls as we mine deeper. This has and will continue to pay off as we see our fleet availability and utilization improve. We also made some improvements at our plant, enabling us to ramp up throughput as mining rates increase. Further improvements will be made in 2020 to enable us to sustainably process 1,500 tpd at 2% copper grade."
"All in all, 2019 was a positive year in the operation. However, given the decline in copper price, the improvements, while narrowing our financial losses, did not lead to a shift to profitability. We must further improve our operations to deliver 1,500 tonnes ore processed per day at 2% copper grade."
"In the first half of 2020 our focus is on raising substantial new investment to enable us to expand our operations to the 1,500 tpd mined and processed at 2% copper grade. We will also be focussing on improved systems and processes at the operations and continuing to drive down our absolute and unit costs."
"During this Covid-19 pandemic we will continue our commitment to the safety and health of our staff and all stakeholders, and their families. We are committed to the expectations of our investors and shareholders and plan to get back to sustainable production levels as soon as it is practical to do so and continue building on the previous success we achieved."
OUTLOOK
For 2020 Rambler continues to pursue the following objectives:
ü Continue to monitor the Covid-19 pandemic and its effect on operations and copper prices. Production levels and guidance will be adjusted and communicated when required.
ü In January 2020 the Company initiated a fundraising initiative to enable expanded production to 1,500 mtpd at 2% copper grade. Discussions with investors are at an advanced stage with anticipated finalization of funding by the end of Q2 2020. Funds raised will be used for:
o Following on from the success of the upgraded resource model that was completed in January 2020, focus will be on a new life of mine plan, updated technical report (NI 43-101) and further exploration in the Ming mine mineralized trends both up-dip and down-dip with the goal to increase near-mine resource and reserves.
o Engaging an external contractor to accelerate underground capital development at the Ming Mine. This will set up the mine with enough flexibility to maintain 1,500 tpd at 2% copper grade, by the end of 2020.
o Making improvements to the crushing, grinding and filter circuits at the Nugget Pond concentrator plant. This is in order to sustainably process 1,500 tpd at 2% copper grade.
ü Continue investigations and plans into the feasibility and costs of establishing a concentrator plant at or near the Ming mine site.
The full audited financial statements are now available on the Company's website at http://www.ramblermines.com
Tim Sanford, P.Eng., is the Qualified Person responsible for the technical content of this release and has reviewed and approved it accordingly. Mr. Sanford is an employee of Rambler Metals and Mining Canada Limited. Tonnes referenced are dry metric tonnes unless otherwise indicated.
Note 1: Results reported are accurate and reflective as of the date of release. The Company performs regular auditing and reconciliation reviews on its mining and milling processes as well as stockpile inventories, following which past results may be adjusted to reflect any changes.
Abbreviations:
g/t = grammes per tonne
dmt = dry metric tonnes
mtpd = metric tonnes per day
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
ABOUT RAMBLER METALS AND MINING
Rambler is a mining and development company that in November 2012 brought its first mine into commercial production. Rambler has a 100 per cent ownership in the Ming Copper-Gold Mine, a fully operational base and precious metals processing facility and year-round bulk storage and shipping facility; all located on the Baie Verte peninsula, Newfoundland and Labrador, Canada.
Following the completion of its recent productivity improvement initiative Rambler's focus is on sustaining mine and mill production at over 1,350 metric tonnes per day at 2% Copper at the Ming Mine with a view to increasing this to 1,500 metric tonne per day by the end of 2020. With a return to profitability and positive cash flow, Rambler will continue advancing engineering studies and capital asset additions to further increase production.
Along with the Ming Mine, Rambler also owns 100 per cent of the former producing Little Deer/ Whales Back copper mines.
Rambler is listed in London under AIM:RMM.
For further information, please contact:
|
Andre Booyzen President and CEO Rambler Metals & Mining Plc Tel No: +44 (0) 20 7 096 0 662 Fax No: +44 (0) 20 860 9 0 313 |
Sanjay Swarup CFO Rambler Metals & Mining Plc Tel No: +44 (0) 20 7096 0662 Fax No: +44 (0) 20 8609 0313 |
T im Sanford. P. Eng. Vice President and Corporate Secretary Rambler Metals & Mining Plc Tel No: +1 (709) 532 5736 Fax No: +1 (709) 8 00 1 921 |
|
Nominated Advisor (NOMAD) |
|
|
|
Ewan Leggat, Caroline Rowe SP Angel Corporate Finance LLP Tel No: +44 (0) 20 3470 0470 |
|
|
|
|
|
|
Website: www.ramblermines.com
Caution Regarding Forward Looking Statements:
Certain information included in this press release, including information relating to future financial or operating performance and other statements that express the expectations of management or estimates of future performance constitute "forward-looking statements". Such forward-looking statements include, without limitation, statements regarding copper, gold and silver forecasts, the financial strength of the Company, estimates regarding timing of future development and production and statements concerning possible expansion opportunities for the Company. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief are based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, the price of and anticipated costs of recovery of, copper concentrate, gold and silver, the presence of and continuity of such minerals at modeled grades and values, the capacities of various machinery and equipment, the availability of personnel, machinery and equipment at estimated prices, mineral recovery rates, and others. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, interpretation and implications of drilling and geophysical results; estimates regarding timing of future capital expenditures and costs towards profitable commercial operations. Other factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, increases/decreases in production; volatility in metals prices and demand; currency fluctuations; cash operating margins; cash operating cost per pound sold; costs per ton of ore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to successfully integrate acquired assets; operational risks inherent in mining or development activities and legislative factors relating to prices, taxes, royalties, land use, title and permits, importing and exporting of minerals and environmental protection. Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and the Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise, except as required under applicable security law.
Consolidated income statement
For the Year Ended December 31, 2019
(EXPRESSED IN US DOLLARS)
|
|
Year to |
Year to |
|
|
31 December |
31 December |
|
2019 |
2018 |
|
|
|
US$'000 |
US$'000 |
|
|
|
|
|
Revenue |
37,115 |
29,718 |
|
Production costs |
(34,464) |
(31,204) |
|
Depreciation and amortisation |
(9,584) |
(9,887) |
|
Gross loss |
(6,933) |
(11,373) |
|
|
|
|
|
Administrative expenses |
(4,480) |
(5,823) |
|
Operating loss |
(11,413) |
(17,196) |
|
Exchange losses |
797 |
(1,503) |
|
Loss on disposal of fixed assets |
(75) |
(95) |
|
(Loss)/gain on fair value of Gold streaming |
(269) |
1,323 |
|
Net finance costs |
(1,206) |
(895) |
|
Net expense |
(753) |
(1,170) |
|
|
|
|
|
Loss before tax |
(12,166) |
(18,366) |
|
|
|
|
|
Income tax (expense)/credit |
- |
(1,680) |
|
|
|
|
|
Loss for the period |
(12,166) |
(20,046) |
|
|
|
|
|
Loss per share |
|
|
|
|
|
|
|
|
Year to |
Year to |
|
31 December |
31 December |
|
|
2019 |
2018 |
|
|
|
US$ |
US$ |
|
|
|
|
|
Basic and diluted loss per share |
(0.010) |
(0.033) |
Consolidated statement of financial position
As at December 31, 2019
(EXPRESSED IN US DOLLARS)
|
|
31 December |
31 December |
|
|
2019 |
2018 |
|
|
US$'000 |
US$'000 |
|
Assets |
|
|
|
Intangible assets |
3,339 |
3,168 |
|
Mineral property |
38,013 |
35,441 |
|
Property, plant and equipment |
23,013 |
24,634 |
|
Equity investments |
128 |
102 |
|
Deferred tax |
11,755 |
11,192 |
|
Restricted cash |
3,483 |
3,247 |
|
Total non-current assets |
79,731 |
77,784 |
|
|
|
|
|
Inventory |
2,445 |
2,333 |
|
Trade and other receivables |
1,074 |
1,126 |
|
Derivative financial asset |
1,654 |
730 |
|
Cash and cash equivalents |
1,936 |
241 |
|
Total current assets |
7,109 |
4,430 |
|
Total assets |
86,840 |
82,214 |
|
|
|
|
|
Liabilities |
|
|
|
Interest-bearing loans and borrowings |
12,848 |
6,897 |
|
Gold streaming |
2,019 |
2,514 |
|
Trade and other payables |
11,467 |
11,195 |
|
Total current liabilities |
26,334 |
20,606 |
|
|
|
|
|
Net current liabilities |
19,225 |
16,176 |
|
|
|
|
|
Interest-bearing loans and borrowings |
2,849 |
4,708 |
|
Gold streaming |
6,656 |
7,829 |
|
Provision |
2,106 |
1,855 |
|
Total non-current liabilities |
11,611 |
14,392 |
|
|
|
|
|
Net assets |
48,895 |
47,216 |
|
|
|
|
|
Equity |
|
|
|
Issued capital |
17,872 |
9,524 |
|
Share premium |
99,059 |
95,999 |
|
Merger reserve |
180 |
180 |
|
Translation reserve |
(16,908) |
(19,192) |
|
Other reserves |
101 |
80 |
|
Retained profits |
(51,409) |
(39,375) |
|
Total equity |
48,895 |
47,216 |
Consolidated statement of cash flows
For the Year Ended December 31, 2019
(EXPRESSED IN US DOLLARS)
|
|
|
|
31 December |
31 December |
|
|
|
|
2019 |
2018 |
|
|
|
|
$'000 |
$'000 |
|
Cash flows from operating activities |
|
|
|
|
|
Operating loss |
|
|
(11,413) |
(17,196) |
|
Depreciation and amortisation |
|
|
9,629 |
9,921 |
|
Loss on derivative financial instrument |
|
|
660 |
1,711 |
|
Share based payments |
|
|
132 |
182 |
|
Foreign exchange difference |
|
|
(445) |
458 |
|
(Increase)/decrease in inventory |
|
|
(112) |
134 |
|
Decrease/(increase) in debtors |
|
|
51 |
(297) |
|
(Increase) in derivative financial instruments |
|
|
(1,584) |
(611) |
|
Increase in creditors |
|
|
588 |
3,827 |
|
Cash utilised in operations |
|
|
(2,494) |
(1,871) |
|
Interest and finance cost paid |
|
|
(686) |
(478) |
|
Net cash utilised in operating activities |
|
|
(3,180) |
(2,349) |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
Interest received |
|
|
249 |
78 |
|
Disposal of equity investment |
|
|
- |
485 |
|
Acquisition of evaluation and exploration assets |
|
|
(15) |
(48) |
|
Acquisition of Mineral property - net |
|
|
(5,130) |
(3,879) |
|
Acquisition of property, plant and equipment |
|
|
(2,506) |
(3,189) |
|
Increase in reclamation deposit and others |
|
|
(71) |
- |
|
Net cash utilised in investing activities |
|
|
(7,473) |
(6,553) |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Issue of share capital |
|
|
11,688 |
7,310 |
|
Share issue expenses |
|
|
(280) |
(16) |
|
Loans received |
|
|
8,277 |
3,815 |
|
Repayment of Gold streaming |
|
|
(2,255) |
(1,755) |
|
Repayment of Loans |
|
|
(3,325) |
(1,460) |
|
Capital element of finance lease payments |
|
|
(1,763) |
(2,116) |
|
Net cash generated from financing activities |
|
|
12,342 |
5,778 |
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
|
1,689 |
(3,124) |
|
Cash and cash equivalents at beginning of period |
|
|
241 |
3,351 |
|
Effect of exchange rate fluctuations on cash held |
|
|
6 |
14 |
|
Cash and cash equivalents at end of period |
|
|
1,936 |
241 |
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