Rambler Metals & Mining (RMM) had a very successful first nine months as a commercial producer of copper, gold and silver, as these financial results for the year ended 31 July attest. Cash flow from operations of C$12.6m (£7.5m) during the period reveals the Ming mine in Canada's Newfoundland province is performing at or above expectations.
Investors can now look forward to a first full year worth of production from Ming. Operating costs of $2.03 per pound of copper-equivalent, against an average copper price of $3.38, should allow the emerging producer to keep paying down debts and deliver on its strategy of regional expansion. To that end, Rambler has signed agreements to explore or acquire interests in three projects within trucking distance of the Ming mine.
True, Rambler still has some work to do firming up the resource base and grade at Ming for the next few years' worth of operations. And profit after tax of C$9m this year was boosted by C$6m of tax credits. But analysts from Cantor Fitzgerald forecast that EPS will almost double to 12¢ in the current financial year as the company ramps up production and cash flow in its first full year as a producer.
RAMBLER METALS & MINING (RMM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 27.75p | MARKET VALUE: | £39.7m | |
| TOUCH: | 27.5-28p | 12-MONTH HIGH/LOW: | 39p | 22p |
| DIVIDEND YIELD: | nil | PE RATIO: | 7 | |
| NET ASSET VALUE: | 54¢* | NET DEBT**: | 29% | |
| Year to 31 Jul | Turnover (C$m) | Pre-tax profit (C$m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2009† | nil | -1.08 | -1.8 | nil |
| 2010 | nil | -2.46 | -2.9 | nil |
| 2011 | 3.52 | -0.08 | -0.1 | nil |
| 2012 | 1.22 | -3.37 | -2.6 | nil |
| 2013 | 34.66 | 2.99 | 6.3 | nil |
| % change | - | - | - | - |
£1=C$1.67 *Includes intangible assets of $17.5m, or 12¢ a share **Includes restricted cash of $3.26m †Figures in pounds sterling | ||||
