Financial Results for Year Ended December 31, 2018
5 June 2019
Rambler Reports Financial Results
Year Ended December 31, 2018
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, 2018.
Year end Highlights
· Revenue for the year was US$29.7 million (2017: US$30.3 million) after certain fair value adjustments;
· Total throughput for the year was 364,176 dmt (2017: 339,631 dmt), a 7% increase which represents the highest annual throughput on record;
· Cash production costs for the year were US$31.2 million (2017: US$26.4 million). Net direct cash costs net of by-product credits ('C1 costs') for the year were US$3.52 per pound of saleable copper (2017: US$2.86);
· Operating loss for the year was US$17.2 million (2017: US$7.4 million). Earnings before interest, taxes, depreciation, amortisation ('EBITDA') for the year was a loss of US$7.5 million (2017: earnings of US$2.8 million);
· Average prices for the year were US$2.93 (2017: US$2.79) per pound of copper and US$1,265 (2017: US$1,257) per ounce gold;
· Intersected significant Ming North Zone mineralization in the underground drilling program including hole R18-722-12 which returned 25.5 meters (downhole length) of 9.4% copper with 5.1 g/t gold.
SUBSEQUENT EVENTS
· In January 2019 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$1 million bearing interest of 10% per annum in support of short-term working capital requirements at its Canadian operation;
· In March 2019 the Company closed a private placement funding of US$11 million by way of an issuance of 599,781,897 new ordinary shares in the capital of Rambler at a subscription price of US$0.018 (£0.014) per ordinary share. The proceeds of the subscription were for working capital purposes and to repay the US$1 million unsecured loan owing to CEIII. The loan was fully repaid in March 2019 including interest;
· An Open Offer for shares was closed in April 2019 with 37,490,043 ordinary shares issued for proceeds of £524,860.58;
· The shares of the Company delisted from TSX Venture Exchange (TSXV) at the close of January 15, 2019. The minimal trading activity of the Company's Shares on the TSXV no longer justified the expense and administrative requirements associated with maintaining this dual listing.
KEY annual FINANCIALS METRICS ($US)
|
|
2018 |
2017 |
|
Revenue |
$29.7 M |
$30.3 M |
|
Cash Production Expenses |
$31.2 M |
$26.4 M |
|
G&A |
$5.8 M |
$3.4 M |
|
EBITDA |
$(7.5) M |
$2.2 M |
|
Operating (loss) profit before impairment |
$(17.2) M |
$(7.4) M |
|
Loss before tax |
$(18.4) M |
$(5.4) M |
|
Loss after tax |
$(20.0)M |
$(4.1)M |
|
Loss per share (US$) |
$(0.03) |
$(0.008) |
|
Cash Flows from Operations |
$(2.3) M |
$1.3 M |
|
Cash cost per lbs of copper, net of credits (C1) (US$) |
$3.52 |
$2.86 |
Key annual Operating METRICS
|
|
2018 |
2017 |
|
Concentrate Production (dry metric tonnes) |
15,525 |
14,907 |
|
Copper (saleable dry metric tonnes) |
4,187 |
3,968 |
|
Gold (saleable ounces) |
4,189 |
3,357 |
|
Concentrate Grade Copper (%) |
28.1 |
27.7 |
|
Gold Concentrate Grade (g/t) |
9.4 |
8.0 |
|
Copper Grades (%) |
1.24 |
1.27 |
|
Gold Grades (g/t) |
0.57 |
0.58 |
|
Avg. Copper Price (US$ per pound) |
2.93 |
2.79 |
|
Avg. Gold Price (US$ per ounce) |
1,264 |
1,257 |
Andre Booyzen, President and CEO, Rambler Metals & Mining commented:
"2018 was a banner year for operations in several areas, including year-over-year improvements in mine output, mill throughput, concentrate production, and metal recoveries. This growth is due to the efforts of all of our employees and contractors, who have continued to keep safe production at the forefront of everything they do."
"While the mine averaged 998 tonnes of ore per calendar day from the underground, the concentrator plant averaged 1,108 tonnes of ore per operating day and hit single-day peak production in 2018 as high as 1,395 dry tonnes per day."
"The completion of the surface ventilation project and the continuation of the Business Improvement Initiative that was started in June 2018 has resulted in improved production metrics from the mine operation (see Table 1 below). These improved KPI's from the mine operation have in turn resulted in better ore blending opportunities for the mill feed, which has positively impacted both throughput and metal recoveries. Additionally, the processing operations group continues to de-bottleneck the copper concentrator plant processing circuit to accommodate the increased production from the mine."
"Given the productivity improvements in the mine operation, which has provided access to better grade material in both the Lower Footwall Zone and the Ming Massive Sulfide deposits, and the positive outlook on long term copper price forecasts, we are now turning our attention to increasing the overall feed grade delivered to the plant and returning the Company to positive cash flows."
FINANCIAL Results
· EBITDA for the year were US$(7.5) million (2017: US$2.2 million). The net loss before tax for the year was US$18.4 million (2017: US$5.4 million);
· Revenue for the year of US$29.7 million (2017 - US$30.3 million);
· A total of 15,525 dmt (2017 - 14,907 dmt) of concentrate was provisionally invoiced during the year containing 4,187 (FY2017 - 3,968) tonnes of saleable copper metal, 4,189 (2017 - 3,357) ounces of saleable gold at an average price of US$2.93 (FY2017 - US$2.79) per pound copper and US$1,264 (FY2017 - US$1,257) per ounce gold;
· Cash flows generated from operating activities for the year were US$(2.3) million (2017: US$1.3 million). The decrease in the cash generated relates to the operating loss and changes in working capital.
· Current cash balance is US$2.8 million at date of release.
OPERATIONAL HIGHLIGHTS
Table 1 - Ore Throughput and Concentrate Production Summary for Fiscal 2018
(See Note 1 below)
|
THROUGHPUT AND RECOVERY |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
|
Fiscal 2018 |
|
Fiscal 2017
|
|
|
Dry Tonnes Milled |
83,016 |
94,589 |
93,128 |
93,443 |
|
364,176 |
|
339,631 |
7% |
|
Copper Recovery (%) |
96.9 |
95.9 |
97.3 |
95.1 |
|
96.3 |
|
95.6 |
1% |
|
Gold Recovery (%) |
68.7 |
68.9 |
72.5 |
72.3 |
|
70.7 |
|
60.7 |
16% |
|
Copper Head Grade (%) |
1.07 |
1.12 |
1.46 |
1.31 |
|
1.24 |
|
1.27 |
-2% |
|
Gold Head Grade (g/t) |
0.41 |
0.63 |
0.54 |
0.67 |
|
0.57 |
|
0.58 |
-2% |
|
CONCENTRATE PRODUCTION
|
|
|
|
|
|
|
|
|
|
|
Copper grade (%) |
28.6 |
28.0 |
29.4 |
26.5 |
|
28.1 |
|
27.7 |
1% |
|
Gold grade (g/t) |
7.9 |
11.2 |
8.1 |
10.2 |
|
9.4 |
|
8.0 |
18% |
|
Dry Tonnes Produced |
3,001 |
3,643 |
4,478 |
4,403 |
|
15,525 |
|
14,907 |
4% |
|
SALEABLE METAL PRODUCTION
|
|
|
|
|
|
|
|
|
|
|
Copper (tonnes) |
823 |
978 |
1,266 |
1,120 |
|
4,187 |
|
3,968 |
6% |
|
Gold (ounces) |
662 |
1,199 |
1,020 |
1,308 |
|
4,189 |
|
3,357 |
25% |
(g/t = grammes per tonne)
OUTLOOK
With the Phase II expansion nearing completion, management continues to pursue the following objectives:
ü Given the productivity improvements in the mine operation, which has provided access to better grade material in both the Lower Footwall Zone and the Ming Massive Sulfide deposits, we are now turning our attention to increasing the overall feed grade delivered to the mill. The guidance for 2019 is highlighted in Table 2 below and reflects our commitment to solidify and extend beyond the improvements we have been able to achieve to date.
Table 2 - Fiscal 2019 Guidance
|
THROUGHPUT |
Fiscal 2019 Guidance
|
|
Dry Tonnes Milled |
400,000 - 450,000 |
|
Copper Head Grade (%) |
1.30 - 1.50 |
|
Gold Head Grade (g/t) |
0.70 - 0.90 |
|
SALEABLE METAL PRODUCTION |
Fiscal 2019 Guidance |
|
Copper (tonnes) |
5,000 - 6,000 |
|
Gold (ounces) |
5,000 - 7,000 |
ü Further evaluate the potential of a Phase III operation with increase in mine production and mill throughput to about 2,000 mtpd.
ü Continuing with the underground exploration program to allow for further exploration of the mineralized trends both up-dip and down-dip with the goal to increase near-mine mine resource and reserves.
ü Continue with the surface exploration diamond drilling program aimed to double the current plunge length of the known massive sulphide and Lower Footwall Zone ("LFZ") mineralization.
For further information see Appendix 1 of this release. The audited financial statements and MD&A 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 1,250 metric tonnes per day. With a return to profitability and positive cash flow, Rambler will continue advancing Phase III engineering studies with a view to further increase production to 2,000 dry tonnes per day at the Ming Mine.
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 7096 0662 Fax No: +44 (0) 20 8609 0313 |
Sanjay Swarup CFO Rambler Metals & Mining Plc Tel No: +44 (0) 20 7096 0662 Fax No: +44 (0) 20 8609 0313 |
Tim Sanford. P. Eng. Vice President and Corporate Secretary Rambler Metals & Mining Plc Tel No: +1 (709) 532 5736 Fax No: +1 (709) 800 1921 |
|
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.
APPENDIX 1 - Supplemental Financial Information
(See Company website www.ramblermines.com for full year 2018 Results)
Consolidated income statement
For the Year Ended December 31, 2018
(EXPRESSED IN US DOLLARS)
|
|
|
|
|
|
Year to |
Year to |
||
|
31 December |
31 December |
||
|
|
|
2018 |
2017 |
|
|
|
US$'000 |
US$'000 |
|
|
|
|
|
|
Revenue |
|
29,718 |
30,339 |
|
Production costs |
|
(31,204) |
(26,444) |
|
Depreciation and amortisation |
|
(9,887) |
(7,798) |
|
Gross loss |
|
(11,373) |
(3,903) |
|
|
|
|
|
|
Administrative expenses |
|
(5,823) |
(3,441) |
|
Exploration expenses |
|
- |
(6) |
|
Operating loss |
|
(17,196) |
(7,350) |
|
Exchange (loss)/gain |
|
(1,503) |
940 |
|
Loss on disposal of fixed assets |
|
(95) |
- |
|
Profit on disposal of equity investments |
|
- |
779 |
|
Gain on fair value of Gold streaming |
|
1,323 |
566 |
|
Net finance costs |
|
(895) |
(379) |
|
Net expense |
|
(1,170) |
1,906 |
|
|
|
|
|
|
Loss before tax |
|
(18,366) |
(5,444) |
|
|
|
|
|
|
Income tax (expense)/credit |
|
(1,680) |
1,296 |
|
|
|
|
|
|
Loss for the period |
|
(20,046) |
(4,148) |
|
|
|
|
|
|
Loss per share |
|
|
|
|
|
|
|
|
|
Year to |
Year to |
||
|
31 December |
31 December |
||
|
|
|
2018 |
2017 |
|
|
|
US$ |
US$'000 |
|
|
|
|
|
|
Basic and diluted loss per share |
|
(0.033) |
(0.008) |
Consolidated statement of financial position
As at December 31, 2018
(EXPRESSED IN US DOLLARS)
|
|
|
31 December |
31 December |
|
|
|
2018 |
2017 |
|
|
|
US$'000 |
US$'000 |
|
Assets |
|
|
|
|
Intangible assets |
|
3,168 |
3,397 |
|
Mineral property |
|
35,441 |
38,834 |
|
Property, plant and equipment |
|
24,634 |
28,443 |
|
Equity investments |
|
102 |
610 |
|
Deferred tax |
|
11,192 |
13,851 |
|
Restricted cash |
|
3,247 |
3,530 |
|
Total non-current assets |
|
77,784 |
88,665 |
|
|
|
|
|
|
Inventory |
|
2,333 |
2,467 |
|
Trade and other receivables |
|
1,126 |
829 |
|
Derivative financial asset |
|
730 |
1,830 |
|
Cash and cash equivalents |
|
241 |
3,351 |
|
Total current assets |
|
4,430 |
8,477 |
|
Total assets |
|
82,214 |
97,142 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Interest-bearing loans and borrowings |
|
6,897 |
3,887 |
|
Gold streaming |
|
2,514 |
2,852 |
|
Trade and other payables |
|
11,195 |
7,314 |
|
Total current liabilities |
|
20,606 |
14,053 |
|
|
|
|
|
|
Net current liabilities |
|
16,176 |
5,576 |
|
|
|
|
|
|
Interest-bearing loans and borrowings |
|
4,708 |
6,072 |
|
Gold streaming |
|
7,829 |
10,624 |
|
Provision |
|
1,855 |
1,961 |
|
Total non-current liabilities |
|
14,392 |
18,657 |
|
|
|
|
|
|
Net assets |
|
47,216 |
64,432 |
|
|
|
|
|
|
Equity |
|
|
|
|
Issued capital |
|
9,524 |
8,061 |
|
Share premium |
|
95,999 |
89,309 |
|
Share warrants reserve |
|
- |
859 |
|
Merger reserve |
|
180 |
180 |
|
Translation reserve |
|
(19,192) |
(14,584) |
|
Other reserves |
|
80 |
86 |
|
Retained profits |
|
(39,375) |
(19,479) |
|
Total equity |
|
47,216 |
64,432 |
Consolidated statement of cash flows
For the Year Ended December 31, 2018
(EXPRESSED IN US DOLLARS)
|
|
|
|
31 December |
31 December |
|
|
|
|
2018 |
2017 |
|
|
|
|
$'000 |
$'000 |
|
Cash flows from operating activities |
|
|
|
|
|
Operating loss |
|
|
(17,196) |
(7,350) |
|
Depreciation and amortisation |
|
|
9,921 |
7,824 |
|
Loss/(gain) on derivative financial instrument (note 5) |
|
|
1,711 |
(2,015) |
|
Share based payments (note 7) |
|
|
182 |
112 |
|
Foreign exchange difference |
|
|
458 |
(259) |
|
Decrease in inventory |
|
|
134 |
29 |
|
(Increase)/decrease in debtors |
|
|
(297) |
455 |
|
Decrease/(increase) in derivative financial instruments |
|
|
(611) |
941 |
|
Increase/(decrease) in creditors |
|
|
3,827 |
1,961 |
|
Cash (utilised in)/generated from operations |
|
|
(1,871) |
1,698 |
|
Interest paid |
|
|
(478) |
(376) |
|
Net cash (utilised in)/generated from operating activities |
|
|
(2,349) |
1,322 |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
Interest received |
|
|
78 |
43 |
|
Disposal of equity investment (note 13) |
|
|
485 |
1,103 |
|
Acquisition of evaluation and exploration assets |
|
|
(48) |
(1,020) |
|
Acquisition of Mineral property - net |
|
|
(3,879) |
(5,277) |
|
Acquisition of property, plant and equipment |
|
|
(3,189) |
(4,103) |
|
Disposal of property, plant and equipment |
|
|
|
- |
|
Net cash utilised in investing activities |
|
|
(6,553) |
(9,254) |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Issue of share capital (note 18) |
|
|
7,310 |
8,436 |
|
Share issue expenses |
|
|
(16) |
(112) |
|
Loans received |
|
|
3,815 |
5,598 |
|
Repayment of Gold streaming (note 22) |
|
|
(1,755) |
(1,105) |
|
Repayment of Loans |
|
|
(1,460) |
(1,137) |
|
Capital element of finance lease payments |
|
|
(2,116) |
(2,593) |
|
Net cash generated from financing activities |
|
|
5,778 |
9,087 |
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
|
|
(3,124) |
1,155 |
|
Cash and cash equivalents at beginning of period |
|
|
3,351 |
2,156 |
|
Effect of exchange rate fluctuations on cash held |
|
|
14 |
40 |
|
Cash and cash equivalents at end of period |
|
|
241 |
3,351 |
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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