As foreshadowed, Rambler Metals & Mining (RMM) exceeded production guidance on a range of metals at the full-year stage - that drove a fivefold increase in operating profits to C$17.9m (£9.9m). A step-up in cash generation also left Rambler able to repay its pre-production loans.
The Toronto dual-listed miner - whose key asset is the Ming Copper-Gold Mine in Newfoundland - reported copper production 9 per cent ahead of its high-end guidance range. Moreover, gold output was 26 per cent higher, while silver production was 35 per cent up on earlier expectations. As expected, production has fallen slightly during the early part of the current financial year, after mining operations moved to an area with lower copper grades. Indeed, grades are expected to be marginally lower overall in 2015, with an estimated copper grade for the year of 2.5-3.5 per cent. But Rambler continues to boost the dry metric tonnage processed, so overall production should ramp up substantially as the year progresses.
Looking ahead, Rambler has multiple growth options in play. Perhaps most significantly is the lower footwall zone at the existing Ming mine, where evaluation work is planned for next year, along with a reserve estimate.
Broker finnCap expects adjusted pre-tax profit of C$14.1m for 2015, with adjusted EPS of 7.1¢ (from 5.9¢ in 2014).
| RAMBLER METALS & MINING (RMM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 26p | MARKET VALUE: | £37m | |
| TOUCH: | 25-26p | 12-MONTH HIGH: | 33p | LOW: 23p |
| DIVIDEND YIELD: | nil | PE RATIO: | 7 | |
| NET ASSET VALUE: | 61¢* | NET DEBT: | 15%** | |
| Year to 31 Jul | Turnover (C$m) | Pre-tax profit (C$m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | nil | -2.5 | -2.9 | nil |
| 2011 | 3.5 | -0.1 | -0.1 | nil |
| 2012 | 1.2 | -3.4 | -2.6 | nil |
| 2013 | 34.7 | 3.0 | 6.3 | nil |
| 2014 | 62.1 | 13.5 | 6.3 | nil |
| % change | +79 | +352 | - | - |
Ex-div: - Payment: - *Includes intangible assets of C$18.5m, or 13¢ a share **Includes restricted cash of $3.26m £1 = C$1.81 | ||||
