Rambler Metals upbeat on third quarter production

21st Oct 2022 14:58

(Sharecast News) - Rambler Metals said in a production update on Friday that the Ming Mine averaged ore production of 998 dry metric tonnes per day in its third quarter, down from 1,073 per day in the second quarter.

The AIM-traded firm said consistent feed to the mill was achieved from inventory, with 4,741 dry tonnes remaining in stock at the end of September.

During the quarter, the Nugget Pond copper and gold milling facility achieved throughput of 1,177 dry tonnes per operating day at a feed grade of 1.75% copper, compared to 1,163 tonnes per operating day at a feed grade of 1.69% copper in the second quarter.

Plant throughput of 102,189 dry tonnes for the quarter represented "the highest such value" since the third quarter of 2019, while the copper head grade of 1.75% matched the fourth quarter of 2021, and stood as the highest since the third quarter of 2016.

Recovery of copper metal to concentrate was 95.8% for the period, compared to 96.5% in the second quarter.

During the three months, the operation produced 6,263 dry metric tonnes of concentrate containing 1,716 tonnes of recovered copper and 714 ounces of recovered gold, compared to a second quarter performance of 5,891 dry tonnes containing 1,627 tonnes and 834 ounces of recovered copper and gold, respectively.

The saleable metal production in totalled 1,654 tonnes of saleable copper and 513 ounces of saleable gold, compared to 1,569 tonnes and 645 ounces of saleable copper and gold in the prior three months.

Rambler said the quarterly saleable copper production in the second and third quarters of 2022 represented the highest such achievements since the 2014 financial year, when the plant was processing high grade material of a 3.68% average from only massive sulphide feed sources.

Development during the quarter totalled 931 metres, down from 1,040 metres in the second quarter.

"Operational performance has continued to improve once again to deliver increasing payable copper production of 1,654 tonnes copper," said president and chief executive officer Toby Bradbury.

"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."

Bradbury said the board was "in conversations" with several groups as it looked 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."

At 1431 BST, shares in Rambler Metals and Mining were up 4.38% at 5.48p.

Reporting by Josh White at Sharecast.com.