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Market: TSX-V AIM
Sector: General Mining
EPIC: RAB
Latest Price: 0.51  (-1.92% Descending)
52-week High: 0.65
52-week Low: 0.38
Market Cap: 68.97M
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Rambler Metals & Mining
www.ramblermines.com

Rambler Metals and Mining plc was established to invest in the base metal sector in politically stable jurisdictions. Its principal project is the Rambler copper-gold property, located on the Baie Verte Peninsula of Newfoundland and Labrador, Canada.

Full Rambler Metals & Mining profile here
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Rambler Metals and Mining looks forward to increased production; releases Q1 results

19th Dec 2011, 7:20 am by Giles Gwinnett
Cash flow from operating activities stood at C$1,284,000 for the three months (Q4/11: $573,000). The increase in the cash generated is due to changes in working capital, said the company Cash flow from operating activities stood at C$1,284,000 for the three months (Q4/11: $573,000). The increase in the cash generated is due to changes in working capital, said the company

Rambler Metals and Mining (LON:RMM, CVE:RAB) made a gross profit of C$545,000 from the sale of gold ounces during its first quarter, it said.

The firm released figures for the three months to October 31 this year, having revealed last week that it made its first gold pour on December 12 - as it moved from development into production at the Ming mine.

The gross profit of C$545,000 (Q1/11: C$374,000) in the three months was due to the sale of 621 ounces of gold from the firm's Tilt Cove East Mine satellite deposit and 74 ounces of gold from refining of Nugget Pond Crown Pillar slag materials.

The net loss for the period was C$845,000 compared to a net profit of $577,000 for the precious quarter - Q4/11 and a net loss of C$268,000 for the first quarter of 2011.

Cash flow from operating activities stood at C$1,284,000 for the three months (Q4/11: $573,000). The increase in the cash generated is due to changes in working capital, said the company.

As at October 31, the cash resources, including short-term investments, stood at C$8.2 million and as of December 19, 2011, these had decreased to C$3.2 million. A further C$5 mln is available under the company's credit facility agreement with Sprott Resource Lending Partnership upon delivery of an executed off-take agreement.

President and chief executive of Rambler, George Ogilvie, said today: "This has been a transformational quarter for Rambler. Following the end of the quarter the company has made the first gold pour a reality on December 12."

He said the firm owed this success to the dedication of employees in their commitment to rehabilitating the once profitable mine.

"Rambler is now in a strong position to continue the momentum achieved in this quarter in order to increase gold
and copper production.

"We look forward to continued successes as ore is moved initially from the high-grade zones and then increasingly from the LFZ (Lower Footwall Zone) in creating additional value as a bulk tonnage operation."

Last Thursday (Dec 15) , broker Seymour Pierce, said Rambler's first gold dore bar from the Ming Mine marked a significant step for the company, as it is now in production from its own mine.

The start of production from the flagship mine on Newfoundland and Labrador's Baie Verte Peninsula was announced - with the first dore bars having been shipped for refining.

The firm will begin processing high grade gold ore from the 1806 zone through its gold hydrometallurgical plant while completing the commissioning of the copper concentrator.

It said the construction of the copper concentrator had now been completed along with "pre-rock" commissioning and it expected to start commercial production from Ming before the end of the 2012 fiscal year.

The plant is now ready for "live" ore testing using Lower Footwall material once the first stoping blocks in the 1806 Zone are finished being processed.

The milling of the 1806 zone started on November 28 this year and so far, 6,877 tonnes have been milled at an average head grade of 4.29 grammes per tonne gold, Rambler said.

The firm has 3,509 tonnes of 1806 zone ore stockpiled at an average grade of 4.10 grammes per tonne gold with an additional 78,599 tonnes of this material having been blasted, drilled, developed or designed.

Analyst Asa Bridle, of Seymour Pierce, said today: "The key point for us in today's statement is the reminder that the company currently has access to nearly 80,000 tonnes ore (10,000 ounces of gold contained) in the 1806 zone, which can be processed ahead of the full copper concentrate production later this year.

"The ongoing Preliminary Economic Assessment (PEA) on the bulk tonnage opportunity presented by the Lower Footwall Zone should not be forgotten either.

"News on this is expected later in the year and could lead to the mine being ramped up to a 10,000 tonnes per annum plus operation, a potential step change for Rambler," he said.

The broker rates the stock a 'buy' with a target price of 55 pence (89 Canadian cents) for the shares.

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