Q3 2022 Operational Results
21 October 2022
Q3 2022 Operational Results
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, is pleased to announce its reconciled operational results for Q3 2022, with the exception of gold values which are awaiting final assay results for September 2022.
PRODUCTION
· For the quarter ended 30 September 2022 (the "Quarter" or "Q3 2022"), the Ming Mine averaged ore production of 998 dry metric tonnes ("dmt") per day (Q2 2022: 1,073 dmt per day). Consistent feed to the mill was achieved from inventory with 4,741 dmt remaining in stock at the end of September.
· During the Quarter, the Nugget Pond copper and gold milling facility achieved throughput of 1,177 dmt per operating day at a feed grade of 1.75% copper (Q2 2022: 1,163 dmt per operating day at a feed grade of 1.69% copper).
· Plant throughput of 102,189 dmt for the quarter represents the highest such value since Q3 2019 while the copper head grade of 1.75% matches that of Q4 2021 and stands as the highest since Q3 2016 (July-September 2016).
· Recovery of copper metal to concentrate was 95.8% for Q3 2022 (Q2 2022: 96.5%).
· During the Quarter, the operation produced 6,263 dmt of concentrate containing 1,716 tonnes of recovered copper and 714 ounces of recovered gold (Q2 2022: 5,891 dmt containing 1,627 tonnes and 834 ounces of recovered copper and gold respectively).
· The saleable metal production in Q3 2022 was 1,654 tonnes of saleable copper and 513 ounces of saleable gold (Q2 2022: 1,569 tonnes and 645 ounces of saleable copper and gold respectively). The quarterly saleable copper production in Q3 (and Q2) of 2022 represent the highest such achievements since fiscal 2014 when the plant was processing high grade material (3.68% average copper grade) from only massive sulfide feed sources.
· Development during the Quarter totalled 931 meters (Q2 2022: 1,040 meters).
Q3 2022 Production Results
Table 1 below summarizes the Ming Copper-Gold Mine's production and development results for the last 5 quarters going back to Q3 2021 and period to date comparisons between 2021 and 2022.
Table 1 : Quarterly mine development and production results for the last five quarters and period to date comparisons between 2021 and 2022
|
See Note 1 below |
Q3 2021 |
Q4 2021 |
Q1 2022 |
Q2 2022 |
Q3 2022 |
|
Q1-Q3 2021 |
Q1-Q3 2022 |
|
PRODUCTION & STOCKPILES |
|
|
|
|
|
|
|
|
|
Ore Stockpiles (dmt) at period end |
3,361 |
3,713 |
17,188 |
15,128 |
4,741 |
|
3,361 |
4,741 |
|
Mine Production (dmt) |
57,580 |
67,002 |
89,053 |
97,627 |
91,804 |
|
171,349 |
278,484 |
|
Total Development (m) |
974 |
1,093 |
1,242 |
1,040 |
931 |
|
2,410 |
3,213 |
|
|
|
|
|
|
|
|
|
|
|
Dry Tonnes Milled |
60,381 |
66,651 |
75,577 |
99,687 |
102,189 |
|
169,252 |
277,453 |
|
|
|
|
|
|
|
|
|
|
|
Copper Recovery (%) |
93.4 |
97.2 |
96.4 |
96.5 |
95.8 |
|
94.8 |
96.2 |
|
Gold Recovery (%) |
67.1 |
77.4 |
75.1 |
75.0 |
69.6* |
|
66.2 |
73.1* |
|
|
|
|
|
|
|
|
|
|
|
Copper Head Grade (%) |
1.43 |
1.75 |
1.52 |
1.69 |
1.75 |
|
1.51 |
1.67 |
|
Gold Head Grade (g/t) |
0.46 |
0.17 |
0.31 |
0.35 |
0.31* |
|
0.54 |
0.32* |
|
CONCENTRATE PRODUCTION |
|
|
|
|
|
|
|
|
|
Copper grade (%) |
27.5 |
27.5 |
26.4 |
27.6 |
27.4 |
|
27.6 |
27.2 |
|
Gold grade (g/t) |
6.3 |
2.2 |
4.2 |
4.4 |
3.6* |
|
6.9 |
4.0* |
|
Dry Tonnes Produced |
2,939 |
4,109 |
4,191 |
5,891 |
6,263 |
|
8,764 |
16,345 |
|
SALEABLE METAL PRODUCTION |
|
|
|
|
|
|
|
|
|
Copper (tonnes) |
778 |
1,090 |
1,066 |
1,569 |
1,654 |
|
2,327 |
4,289 |
|
Gold (ounces) |
502 |
155 |
424 |
645 |
513* |
|
1,649 |
1,582* |
* Awaiting final assay results for gold in September 2022
Operational Update
Production and Developed State
Mining progressed in all four of the main production areas in the mine, with production occurring from the Lower Footwall Zone ("LFZ") on 510L and 760L, the Upper Footwall Zone ("UFZ") on 790L, and the Ming North Zone ("MNZ") on 785L. Average mined grades during the quarter were 1.78% copper with ore being mined from the 510L in the LFZ. At the end of September, there were approximately 10,000 tonnes of ore blasted available for mining, around 30,000 tonnes of ore drilled ready for blasting and approximately 200,000 tonnes available for drilling.
Development was strategically reduced to keep pace with production in all zones through the Quarter, providing sustainable access to production tonnes going forward while preserving cash.
Nugget Pond
The Nugget Pond processing plant has achieved throughput averaging 1,177 dmt per operating day ("tpod") in the period. Plant availability for the Quarter was 94.3% and was impacted by a premature cone crusher liner failure. This resulted in an 8-day period where the average mill throughput was reduced during the latter part of September. The crusher was returned to full operational capacity in early October 2022.
Copper recovered for the Quarter was 1,716 tonnes based on 102,189 tonnes milled at a grade of 1.75% copper and recovery of 95.8%.
FINANCIAL
Discussions continue with several groups, including Newgen Resource Lending Inc. ("Newgen") as the Company's principal secured creditor, to restructure the finances of the Company.
Toby Bradbury, President and CEO, commented:
" Operational performance has continued to improve once again to deliver increasing payable copper production of 1,654 tonnes Cu. Although working capital constraints held us back at the end of September, we have finished the Quarter well placed to deliver 2,000 tonnes of copper in the final quarter of 2022.
"At the start of Q4, we have 10,000 tonnes of ore blasted on the ground available for mining, over 30,000 tonnes drilled ready for blasting and approximately 200,000 tonnes available for drilling. This provides an established ore mining inventory for 6 months.
The ability to switch mining from the 760L in the LFZ to the 510L highlights the value created in the redundancy that we now have in the underground operation. That was not present before.
"Consensus pricing at the start of July 2022 remained above US$4.00/lb through 2022 and into 2023. At these levels, it was anticipated that the working capital needs of the operations could be met from cash generation. The current lower copper prices (US$3.40-US$3.50/lb) mean that, while operations are generating a cash margin, the margin is not adequate to service the legacy debt of the Company. As we previously advised the market, Rambler is seeking a financial restructure to address the legacy debt that sits in the Company. During this period, the Company remains vulnerable to its working capital constraints.
"The current share price of around 5p indicates an enterprise value for Rambler, including all its debt, of approximately US$40million. That is US$40 million for an operating copper-gold mine in eastern Canada with a billion pounds of copper in measured and indicated resource with significant exploration potential and several cost-reduction and expansion projects in the pipeline.
"The past two years have been a turn-around story for Rambler which, in similar fashion to a pure exploration project, delivers value by increasing the size of the "pie". The Company has been successful in achieving its broad objectives (namely mine development, creation of multiple mining zones, and sustainable increased production and grade) despite the constraints of a weak balance sheet and the physical "pie" is now substantially bigger than 24, 18, 12 and even 6 months ago. While debt has increased, that is reflected in the improved developed state of the mine, which has reduced the operational risk. The debt is still small in the context of the overall resource value.
"Today, under the stewardship of a competent operations team, we have four distinct underground producing zones with six months of developed ore reserves ahead of us. The primary reason we struggle is for lack of working capital, which also causes costs to be higher than they would otherwise be. Examples of this include being trapped in short-term rentals for known long -term equipment requirements, inferior creditor terms, and having limited ability to execute capital efficiency improvements with short payback timelines.
"We are in conversations with several groups as we seek to restructure the finances of the Company. Central to this process is Newgen as our principal secured creditor. However, there can be no certainty at this stage that Newgen will agree to defer or reschedule the repayment of its loan which is due to start being repaid at the end of this month, or the terms on which any deferral is agreed. We are still strongly of the view that Rambler's current valuation represents an exciting opportunity and will update the market on the outcome of our financing discussions in due course. "
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
tpd = 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') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. 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.
The Company has established a production profile to meet current mill capacity of 1,350 metric tonnes per day with a target grade of 2% Cu and is evaluating growth opportunities from that base .
Along with the Ming Mine, Rambler also owns 100 per cent of the former producing Little Deer Complex.
Rambler is listed in London under AIM:RMM.
For further information, please contact:
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T oby Bradbury President and CEO Rambler Metals & Mining Plc Tel No: +1 (709) 800 1929 Fax No: +1 (709) 800 1921 |
Celeste Van Tonder CFO Rambler Metals & Mining Plc Tel No: +1 (709) 800 1929 Fax No: +1 (709) 800 1921 |
T im Sanford. P. Eng. VP & Corporate Secretary Rambler Metals & Mining Plc Tel No: +1 (709) 532 5736 Fax No: +1 (709) 800 1921 |
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Nominated Advisor (NOMAD) |
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Ewan Leggat, Caroline Rowe SP Angel Corporate Finance LLP Tel No: +44 (0) 20 3470 0470 |
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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.
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