Financial Results Period Ended March 31, 2017
25 May 2017
Rambler Reports Financial Results Period Ended March 31, 2017
London, England & Baie Verte, Newfoundland and Labrador, Canada - Rambler Metals and Mining plc (TSXV: RAB, AIM: RMM) ('Rambler' or the 'Company'), a copper and gold producer operating in Newfoundland and Labrador, Canada, today reports its unaudited financial results and operational highlights for period ended March 31, 2017 (Q1/17).
period Highlights
· Production of 75,438 dry metric tonnes ('dmt') of ore (Q4/16: 72,036 dmt, Q1/16: 58,362 dmt) a 5% increase on the previous quarter, with copper head grade of 1.13% (Q4/16: 1.36%, Q1/16: 2.28%).
· Production of 2,930 tonnes of concentrate (Q4/16: 3,168 dmt, Q1/16: 4,260 dmt) containing 794 metric tonnes of saleable copper (Q4/16: 850 dmt, Q1/16: 1,107 dmt) and 391 ounces of saleable gold (Q4/16: 865 dmt, Q1/16: 2,096 dmt).
· Revenue for the quarter was US$5.7 million (Q4/16: US$5.4 million, Q1/16: US$7.7 million).
· Average prices for the quarter were US$2.63 per pound of copper (Q4/16: US$2.36, Q1/16: US$2.13) and US$1,211 per ounce gold (Q4/16: US$1,246 Q1/16: US$1,173).
· Operating loss of US$3.5 million (Q4/16: US$3.4 million loss, Q1/16: US$0.4 million profit) and Earnings before interest, taxes, depreciation, amortisation ('EBITDA') of US$(1.5) million (Q4/16: US$(1.0) million, Q1/16: $2.9 million).
· Direct cash costs net of by-product credits ('C1 costs') for the quarter were US$3.39 per saleable pound of copper (Q4/16: US$2.99, Q1/16: US$1.39).
· Cash flows (utilized)/generated from operating activities were US$(2.1) million (Q4/16: US$0.2 million, Q1/16: US$2.4 million).
KEY FINANCIALS METRICS
|
Financial Highlights (All amounts in 000s of US Dollars, unless otherwise stated) |
Three months ended |
||
|
March 31, 2017 |
December 31, 2016 |
March 31, 2016 |
|
|
Revenue |
5,725 |
5,396 |
7,660 |
|
Production costs |
6,492 |
6,224 |
4,849 |
|
Administrative expenses |
863 |
793 |
730 |
|
Net (loss)/income |
(2,769) |
(1,135) |
737 |
|
Cash and cash equivalents at end of period |
5,094 |
2,156 |
374 |
|
Total Assets |
88,968 |
82,491 |
82,545 |
|
Total Liabilities |
(26,384) |
(26,122) |
(24,895) |
|
Working Capital |
123 |
(3,214) |
(8,308) |
|
Weighted average number of shares outstanding ('000s) |
535,605 |
414,290 |
145,958 |
|
Earnings/(loss) per share ($) |
(0.005) |
(0.003) |
0.006 |
Key Operating METRICS
|
|
Q1/17 |
Q4/16 |
Q1/16 |
|
Production (dry metric tonnes of concentrate) |
2,930 |
3,168 |
4,260 |
|
Copper (saleable dry metric tonnes) |
794 |
850 |
1,107 |
|
Gold (saleable ounces) |
391 |
865 |
2,096 |
|
Concentrate Grade Copper (%) |
28.2 |
26.8 |
27.1 |
|
Gold Concentrate Grade (g/t) |
5.2 |
9.2 |
16.3 |
|
Copper Grades (%) |
1.13 |
1.36 |
2.28 |
|
Gold Grades (g/t) |
0.3 |
0.56 |
1.72 |
|
Avg. Copper Price (US$ per pound) |
2.63 |
2.36 |
2.13 |
|
Avg. Gold Price (US$ per ounce) |
1,211 |
1,246 |
1,173 |
Norman Williams, President and CEO, Rambler Metals & Mining commented:
"Underground development into the Lower Footwall Zone is continuing, and picking up pace as more headings are brought online. While grade for the quarter was below guidance, this decrease in grade during the period was anticipated as we continue to ramp up access development and to transition the blended mill feed to include more LFZ stope ore.
"Development into the core of the LFZ is on the critical path and necessary before steady production can be maintained with ore primarily sourced from LFZ stoping areas. As multiple stoping areas come online, mine production of 1,250 tonnes per day ore can be sustained from mid-2017 onward. With this grade will then increase throughout the remainder of the year causing C1 cost to decline to the targeted $1.70 per pound of copper.
"At quarter-end, the operation was scheduling final upgrades to the mill's grinding circuit in advance of increased ore production from the mine. In addition to the capital expansion projects, the Lower Footwall Zone surface exploration drill program is proceeding on schedule with a planned start date in June. We look forward to providing updates on this project over the coming months."
FINANCIAL Results
· Earnings (losses) before interest, taxes, depreciation, amortisation ("EBITDA") were US$(1.5) million for Q1/17 compared to US$(1.0) million in Q4/16 and US$2.9 million in Q1/16. The net loss after tax for Q1/17 was US$2.8 million or US$0.005 per share which compares with a loss of US$1.6 million or US$0.004 per share for Q4/16 and a profit of US$0.8 million or US$0.006 per share for Q1/16. The increase in losses from Q4/16 was mainly due to a tax credit recognised in Q4/16 and the increase from Q1/16 was mainly due to the lower production of saleable pounds of copper.
· A total of 3,249 dmt (Q4/16 - 3,272 dmt, Q1/16 - 4,297 dmt) of concentrate was provisionally invoiced during the period at an average price of US$2.63 (Q4/16 - US$2.36, Q1/16 - US$2.13) per pound copper and US$1,211 (Q4/16 - US$1,246, Q1/16 - US$1,173) per ounce gold, generating US$5.7 million in revenue (Q4/16 US$5.7 million, Q1/16 - US$6.9 million). Revenue for the quarter was US$5.7 million (Q4/16 US$5.4 million, Q1/16 - US$7.7 million) after adjustments arising from second provisional invoices and final settlement of provisional invoices. The reduction in revenue compared to Q1/16 is due to lower planned copper head grades while the Company continues to develop into the LFZ to achieve its production target of 1,250 mtpd.
· Cash flows utilized in operating activities for Q1/17 were US$2.1 million compared with cash generated of US$0.2 million in Q4/16 and $2.4 million in Q1/16. The utilization of cash in operations for the quarter arose from a cash operating loss offset by changes in working capital.
OPERATIONAL HIGHLIGHTS
Ore and Concentrate Production Summary for the period
|
PRODUCTION |
Q4/16
|
Q1/17
|
|
Q1/16
|
Q1/17
|
|
|
|
|
|
|
|
|
|
|
Dry Tonnes Milled |
72,036 |
75,438 |
5% |
58,362 |
75,438 |
29% |
|
|
|
|
|
|
|
|
|
Copper Recovery (%) |
94.1 |
96.6 |
0% |
96.3 |
96.6 |
0% |
|
Gold Recovery (%) |
70.5 |
64.0 |
-9% |
71.4 |
64.0 |
-10% |
|
|
|
|
|
|
|
|
|
Copper Head Grade (%) |
1.36 |
1.13 |
-17% |
2.28 |
1.13 |
-50% |
|
Gold Head Grade (g/t) |
0.56 |
0.3 |
-46% |
1.72 |
0.3 |
-82% |
|
CONCENTRATE (Produced and Stored in Warehouse) |
|
|
|
|
|
|
|
Copper (%) |
26.8 |
28.2 |
5% |
27.1 |
28.2 |
4% |
|
Gold (g/t) |
9.2 |
5.2 |
-44% |
16.3 |
5.2 |
-68% |
|
|
|
|
|
|
|
|
|
Dry Tonnes Produced |
3,168 |
2,930 |
-8% |
4,260 |
2,930 |
-31% |
|
|
|
|
|
|
|
|
|
Saleable Copper Metal (t) |
850 |
794 |
-7% |
1,107 |
794 |
-28% |
|
Saleable Gold (oz) |
865 |
391 |
-55% |
2,096 |
391 |
-81% |
For further information see Appendix 1 of this release. The audited financial statements and MD&A will be available on the Company's website at http://www.ramblermines.com and on SEDAR.
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.
Along with the Ming Mine, Rambler also owns 100 per cent of the former producing Little Deer/ Whales Back copper mines and has strategic investment in the former producing Hammerdown gold mine.
Rambler is dual listed in London under AIM:RMM and in Canada under TSX-V:RAB.
For further information, please contact:
|
Norman Williams, CPA,CA President and CEO Rambler Metals & Mining Plc Tel No: 709-800-1929 Fax No: 709-800-1921 |
Peter Mercer Vice President, Corporate Secretary Rambler Metals & Mining Plc Tel No: +44 (0) 20 8652-2700 Fax No: +44 (0) 20 8652-2719 |
|
Nominated Advisor (NOMAD) |
Investor Relations |
|
David Porter, Craig Francis Cantor Fitzgerald Europe Tel No: +44 (0) 20 7894 7000 |
Nicole Marchand Investor Relations Tel No: 416- 428-3533 Nicole@nm-ir.com |
Website: www.ramblermines.com
Larry Pilgrim, P.Geo., is the Qualified Person responsible for the technical content of this release and has reviewed and approved it accordingly. Mr. Pilgrim is an independent consultant contracted by 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.
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.
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 or SEDAR for full period ended March 31, 2017 Results)
Rambler Metals and Mining Plc
Unaudited Consolidated income statement
For the Quarter Ended March 31, 2017
(EXPRESSED IN US DOLLARS)
|
|
|
|
|
Quarter ended March 31 2017 |
Quarter ended March 31 2016 |
|
|
|
|
|
US$'000 |
US$'000 |
|
Revenue |
|
|
|
5,725 |
7,660 |
|
Production costs |
|
|
|
(6,492) |
(4,849) |
|
Depreciation and amortisation |
|
|
|
(1,900) |
(1,695) |
|
Gross (loss)/profit |
|
|
|
(2,667) |
1,116 |
|
|
|
|
|
|
|
|
Administrative expenses |
|
|
|
(863) |
(730) |
|
|
|
|
|
|
|
|
Exploration expenses |
|
|
|
(5) |
(4) |
|
Operating (loss)/profit |
|
|
|
(3,535) |
382 |
|
|
|
|
|
|
|
|
Bank interest receivable |
|
|
|
11 |
6 |
|
Loss on derivative financial instruments |
|
|
|
(26) |
(227) |
|
Finance costs |
|
|
|
(557) |
(175) |
|
Foreign exchange differences |
|
|
|
201 |
1,044 |
|
Net financing expense |
|
|
|
(371) |
648 |
|
|
|
|
|
|
|
|
(Loss)/profit before tax |
|
|
|
(3,906) |
1,030 |
|
|
|
|
|
|
|
|
Income tax credit/(expense) |
|
|
|
1,137 |
(293) |
|
(Loss)/profit for the period and attributable to owners of the parent |
|
|
|
(2,769) |
737 |
Earnings per share
|
|
|
|
|
Quarter ended March 31 2017 |
Quarter ended March 31 2016 |
|
|
|
|
|
US$'000 |
US$'000 |
|
|
|
|
|
|
|
|
Basic and diluted earnings per share |
|
|
|
(0.005) |
0.006 |
Rambler Metals and Mining Plc
Unaudited Consolidated balance sheet
As at March 31, 2017
(EXPRESSED IN US DOLLARS)
|
|
Note |
Unaudited |
Audited |
|
|
|
March 31 2017 |
December 31 2016 |
|
|
|
US$'000 |
US$'000 |
|
Assets |
|
|
|
|
Intangible assets |
3 |
2,198 |
2,169 |
|
Mineral properties |
4 |
34,928 |
34,453 |
|
Property, plant and equipment |
5 |
24,092 |
23,056 |
|
Available for sale investments |
6 |
1,650 |
1,333 |
|
Deferred tax |
|
12,788 |
11,545 |
|
Restricted cash |
|
3,328 |
3,243 |
|
Total non-current assets |
|
78,984 |
75,799 |
|
|
|
|
|
|
Inventory |
7 |
2,346 |
2,496 |
|
Trade and other receivables |
|
1,288 |
1,284 |
|
Derivative financial asset |
8 |
1,256 |
756 |
|
Cash and cash equivalents |
|
5,094 |
2,156 |
|
Total current assets |
|
9,984 |
6,692 |
|
Total assets |
|
88,968 |
82,491 |
|
|
|
|
|
|
Equity |
|
|
|
|
Issued capital |
|
8,055 |
6,374 |
|
Share premium |
|
89,280 |
81,442 |
|
Share warrants reserve |
|
858 |
2,089 |
|
Merger reserve |
|
180 |
180 |
|
Translation reserve |
|
(18,386) |
(18,749) |
|
Fair value reserve |
|
786 |
476 |
|
Retained profits |
|
(18,189) |
(15,443) |
|
Total equity |
|
62,584 |
56,369 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Interest-bearing loans and borrowings |
9 |
14,688 |
14,412 |
|
Provision |
10 |
1,835 |
1,804 |
|
Total non-current liabilities |
|
16,523 |
16,216 |
|
|
|
|
|
|
Interest-bearing loans and borrowings |
9 |
4,678 |
4,814 |
|
Trade and other payables |
|
5,183 |
5,092 |
|
Total current liabilities |
|
9,861 |
9,906 |
|
Total liabilities |
|
26,384 |
26,122 |
|
Total equity and liabilities |
|
88,968 |
82,491 |
Rambler Metals and Mining Plc
Unaudited statements of cash flows
For the Quarter Ended March 31, 2017
(EXPRESSED IN US DOLLARS)
|
|
|
|
|
Quarter ended March 31 2017 |
Quarter ended March 31 2016 |
|
|
|
|
|
US$'000 |
US$'000 |
|
Cash flows from operating activities |
|
|
|
|
|
|
Operating (loss)/profit |
|
|
|
(3,535) |
382 |
|
Depreciation and amortisation |
|
|
|
1,907 |
1,712 |
|
Share based payments |
|
|
|
23 |
9 |
|
Foreign exchange difference |
|
|
|
(116) |
(55) |
|
Decrease/(increase) in inventory |
|
|
|
150 |
(548) |
|
(Increase)/decrease in debtors |
|
|
|
(4) |
368 |
|
(Increase)/decrease in derivative financial instruments |
|
|
|
(526) |
117 |
|
Increase in creditors |
|
|
|
56 |
502 |
|
Cash (utilised in)/generated from operations |
|
|
|
(2,045) |
2,487 |
|
Interest paid |
|
|
|
(78) |
(83) |
|
Net cash (utilised in)/generated from operating activities |
|
|
|
(2,123) |
2,404 |
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Interest received |
|
|
|
11 |
6 |
|
Acquisition of evaluation and exploration assets |
|
|
|
(7) |
(74) |
|
Acquisition of mineral properties - net |
|
|
|
(1,162) |
(1,083) |
|
Acquisition of property, plant and equipment |
|
|
|
(798) |
(1,082) |
|
Net cash utilised in investing activities |
|
|
|
(1,956) |
(2,233) |
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
Share issue proceeds |
|
|
|
8,407 |
- |
|
Share issue expenses |
|
|
|
(119) |
- |
|
Acquisition of subsidiary (net of cash) |
|
|
|
- |
(49) |
|
Repayment of Gold loan (note 9) |
|
|
|
(145) |
(373) |
|
Repayment of Loans |
|
|
|
(563) |
- |
|
Capital element of finance lease payments |
|
|
|
(588) |
(535) |
|
Net cash utilised in financing activities |
|
|
|
6,992 |
(957) |
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
|
2,913 |
(786) |
|
Cash and cash equivalents at beginning of period |
|
|
|
2,156 |
1,166 |
|
Effect of exchange rate fluctuations on cash held |
|
|
|
25 |
(6) |
|
Cash and cash equivalents at end of period |
|
|
|
5,094 |
374 |
This information is provided by RNS
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