Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
CANADA’ S NEWEST COPPER AND GOLD PRODUCER
MINING MILLING MARKETS
INVESTOR UPDATE PRESENTATION21 MAY 2013
FORWARD LOOKING STATEMENT
RMM financial and operational press releases and presentations are available, together with Management’s Discussion and Analysisand supplemental data about our property portfolio and other information, on the Company’s Web Site at www.ramblermines.com.
All Company audio, visual and written presentations normally contain forward-looking statements, including those identified by theexpressions “anticipate” “believe” “plan” “estimate” “expect” “intend” and similar expressions to the extent they relate to theexpressions anticipate , believe , plan , estimate , expect , intend and similar expressions to the extent they relate to theCompany or its management. The forward-looking statements are not historical facts but reflect the Company’s current expectationsregarding future results or events and are based on information currently available to management. Certain material factors andassumptions are applied in providing these forward-looking statements.
Management believes that the expectations reflected in forward-looking statements are based on reasonable assumptions; howeverManagement believes that the expectations reflected in forward-looking statements are based on reasonable assumptions; however,management can give no assurance that actual results will be consistent with these forward-looking statements. Statements aboutpotential discoveries or extensions of mineralization and deposits are examples of forward-looking statements. There is no guaranteethat any discovery of commercial mineralization will be made on any of RMM’s properties. The material factors or assumptions thatwere applied in providing these forward-looking statements are contained in various security filings, including the Company’s MD&Acontained in the 2008 Annual Report and quarterly MD&A’s all of which are available on SEDAR at www sedar com and thecontained in the 2008 Annual Report and quarterly MD&A’s, all of which are available on SEDAR at www.sedar.com and theCompany’s website.
Undue reliance should not be placed on any of the Company’s audio, visual or written forward-looking statements. Further, aforward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation topublically update any such statement or to reflect new information or the occurrence of future events or circumstances except aspublically update any such statement or to reflect new information or the occurrence of future events or circumstances, except asmay be required under applicable security laws.
RMM’s qualified person, Mr. Larry Pilgrim, P. Geo., is responsible for verification and quality assurance of the exploration data andthe analytical results set forth in this presentation. RMM is in full compliance with all NI43-101 rules and regulations.
2
CORPORATE INFORMATION
Management
George Ogilvie, P. Eng. (CEO, Director), Norman Williams, CA, (CFO), Peter Mercer (VP Corporate Development), TimSanford, P. Eng. (VP Technical Services) and Bob McGuire, P. Eng. (General Manager)
Board of Directors and Officers
Harry Dobson, John Thomson, Brian Hinchcliffe, Stanley Neamonitis, Leslie Goodman, Dalis Chan and Eason Chen
Market Facts (May 17th, 2013 )
Shares Outstanding: 143,235,614Options: 4,002,000F ll Dil dFully Diluted: 147,237,614
Current Share Price: £ 0.2452 Week Range: £ 0.24 - £0.38Market Cap: £ 36 MMarket Cap: £ 36 MCash: £ 3.5 M*
(*Additional $ 2M in Inventory and $ 3M in Credit Facility)
3www.ramblermines.com
MAJOR SHAREHOLDERS
Holder Shares Percent
1. Tinma International Limited 22,736,992 15.87
2. Henderson Global Investors 21,502,477 15.01
3 Legal and General Investment 19 375 000 13 533. Legal and General Investment 19,375,000 13.53
4. Whitmill Trust Co Limited 8,838,000 6.17
5. Majedie Asset Management 8,340,542 5.82j g , ,
Total Insiders 81 M 56%
Average Trading Volume on AIM – 290,671 shares
Average Trading Volume on TSX-V – 43,042 shares
4www.ramblermines.com
as of April 2013
ASSETS
Ming Copper-Gold Mine, Baie Verte, NL, Canada
The Ming Copper-Gold Mine is 100% owned by Rambler and was brought back into production in December2011. Initially producing Gold Doré before switching over to Copper Concentrate production with Gold andSilver credits in the concentrate from May 2012.y
Nugget Pond Gold Hydrometallurgical Mill, Snook’s Arm, NL, Canada
In 2009 the Company acquired the 500 mtpd Nugget Pond Gold Hydrometallurgical Mill for C$ 3.5M fromCrew Gold. The Company then invested C$15M in a new 1,000 mtpd copper flotation circuit giving the millCrew Gold. The Company then invested C$15M in a new 1,000 mtpd copper flotation circuit giving the milldual functionality of producing a Gold Doré or Copper Concentrate. The plant has a permitted tailings pondwith a minimal 10 year life that could be significantly increased with raising of the two dams.
Krissy‘s Buckle Propertyy p y
Greenfield 2300 Hectare Gold property within 35Km of the Nugget Pond Processing Plant. The property hasanomalous Gold samples including 10.51 g/t over 1.7m within 10m of surface
Minority 17% Equity Stake in Maritime ResourcesMinority 17% Equity Stake in Maritime Resources
Maritime owns the former producing Hammerdown Gold Mine situated within 150Km’s of the Nugget PondMill.
5www.ramblermines.com
LOCATION
Roads Fresh Water Hydro
KrissyBuckle
Hammerdown Mine &
Orion Deposit
Community Airports Port Mill Mill Geo-Political Socio-Economic Tax Regime
6www.ramblermines.com
MING COPPER GOLD MINE
OPERATIONAL REVIEW
7www.ramblermines.com
HEALTH & SAFETY
13.7
11 6
15
Fatalities Lost Times Medical Aids Total Injury Freq. Rate
11.6
10
ber De-Watering Production
45
4
64.3
6.4
2.3
5
Num
b
Construction
14 4
30 0 0 0
02005 2006 2007 2008 2009 2010 2011 2012 2013
• 614 Days Since Last Lost Time Accident• 1 LTA in 7 Years of Continuous Operation• 9 Days Since Last Medical Aid
8www.ramblermines.com
GOLD PRODUCTION – 1806 ZONE
G ld O T l G ld
3,145
2 690 2 713
3,333
14,917 14,000
16,000
3000
3500
Gold Oz Total Gold
2,690 2,608 2,713
11,584 10,000
12,000
2000
2500
Oun
ces
unce
s
6,263
8,871
4,000
6,000
8,000
1000
1500
Tota
l Gol
d
Gol
d O
u
428 3,573
-
2,000
4,000
0
500
D '11 J '12 F b'12 M '12 A '12 M '12Dec'11 Jan'12 Feb'12 Mar'12 Apr'12 May'12
• $25M in Revenue Sales• Cash Cost per Oz $1,000• Gold Recoveries in Excess of 92%
9
• Processed Ore at a Rate of 617 Wet Metric Tonnes per Day
www.ramblermines.com
GOLD PRODUCTION – 1806 ZONE
Bars 037 – 044 @ 40% Purity = $3.2M
10www.ramblermines.com
COPPER PRODUCTION
1 525 1 500 1 500
4.62 4.50 4.554.50
5.00
1,600
1,800
Copper lbs Forecast Cu lbs Copper Grade %
1,030 978 965888
1,5251,400
1,500 1,500
3.32
3.00
3.50
4.00
1 000
1,200
1,400
rade
%
ered
(000
’s) Mill Purposely Shut COB Freezing
455
715 746
405
888
1.50
2.00
2.50
600
800
1,000
Cop
per G
r
. Cu
Rec
ove
405
0.00
0.50
1.00
-
200
400 lbs.
Aug'12 O D F A J• Declared Commercial Production November 2012• Copper Recoveries Averaging 91% with April & May Now at 94%• Average Copper Grade now Over 4.5%
11
• April - Operating Unit Cost was $1.45 per eq. lb. Cu. All in Unit Costs was $2.18 per eq. lb. Cu.
www.ramblermines.com
GOLD IN CONCENTRATE
90100600
Gold Oz's Forecast Gold Oz'sCopper Tailings Re-Processing Gold Recovery
10860708090
400
500
over
y %
unce
s
300 365 341
255 256 305
505 530 550 550107 108
20304050
100
200
300
Gol
d R
eco
Gol
d O
u
124 176
010
-
100
• Gold Head Grade Average 1.18 g/t with April running at 1.52 g/t• Average Gold Recovery 63% with April running at 69%• Re Processing of Tailings Elevated Recoveries to +80% Concept Works
12
• Re-Processing of Tailings Elevated Recoveries to +80%. Concept Works.
www.ramblermines.com
CONCENTRATE SHIPMENTS
1st Shipment(Nov 2012)
2nd Shipment(Feb 2013)
Available 21st May
Wet Metric Tonnes 8,873 3,150 6,200
% Moisture 8.5% 8.5% 8.5%
Dry Metric Tonnes 8,119 2,882 5,307
Cu. Grade % 26.1% 28.6% 28.5%
Ibs. Cu. Metal 4.83M lbs. 1.81M lbs. 3.60M lbs.
Gold Grade g/t 5.6 g/t 6.8 g/t 7.0 g/t
Sil G d /t 47 /t 47 /t 54 /tSilver Grade g/t 47 g/t 47 g/t 54 g/t
Revenue $20M $7M Circa $14M
• Projecting 11 700 Wet Metric Tonnes by 31st July 2013• Projecting 11,700 Wet Metric Tonnes by 31st July 2013• 80,000 Wet Metric Tonne Off-Take Agreement with Transamine Trading SA• Rambler is Paid 90% of Provisional Value of Concentrates when in Warehouse• Clean Concentrate – No Deleterious Material
13www.ramblermines.com
GOODYEAR’S COVE PORT
14www.ramblermines.com
GOODYEAR’S COVE WAREHOUSE
15www.ramblermines.com
FINANCIALS
16www.ramblermines.com
2Q INCOME STATEMENT
CAD $’s (000’s) 2Q (Nov’12 – Jan’13)
Revenue 11,407
Cost of Sales 7,328
Realized Copper US$ 3.52 Realized Gold US$ 1,685
Depreciation & Amortization 2,040
Gross Profit 2,039
G&A 925
Operating Profit 1,114
Net Financing Income 816
Income before Tax 1,930
Tax Credit 28
Net Profit 1 958
$85M in Tax Pool EBITDA $3.68 M EPS $0 014
17
Net Profit 1,958 EPS $0.014
www.ramblermines.com
2Q BALANCE SHEET
CAD $’s (000’s) 2Q (Nov’12 – Jan’13)
Property, Plant & Equipment 30,341
Mineral Properties 47,987p ,
Intangible Assets 17,318
Assets for Sale 1,220
Total Non-Current Assets 96,866Total Non Current Assets 96,866
Cash 7,325
Restricted Cash 3,268
Inventory & Recoverables 4 508Inventory & Recoverables 4,508
Total Current Assets 15,101
Total Assets 111,967
Total Equity 69 233 Fi i L $8 4MTotal Equity 69,233Non-Current Liabilities 21,561
Current Liabilities 21,173
T t l E it & Li biliti 111 967
Financing Leases $8.4M Sprott Debt $7.0M* Sandstorm Gold Loan $24M
* Sprott Debt Currently $6 5M
18
Total Equity & Liabilities 111,967 * Sprott Debt Currently $6.5M (21/5/13)
www.ramblermines.com
SUMMARY OF CASH FLOW
CAD $’s (000’s) 2Q (Nov’12 – Jan’13)
Net Cash from Operations 4,978
Interest Received 21
Acquisition of PP&E (126)
Acquisition of Mineral Property (1 053) Additional Investment in MAEAcquisition of Mineral Property (1,053)Net Cash used in Investing (1,158)
Repayment of Gold Loan (388)
Additional Investment in MAE Awaiting NI43-101
Repayment of Gold Loan (388)
Repayment of Sprott Debt (500)
Capital Portion of Leases (529)
Net Cash used in Financing (1 413)
$600 K to be Paid 31st May reducing Sprott Debt to $5.9M
Net Cash used in Financing (1,413)
Net Increase in Cash 2,407
19www.ramblermines.com
SELECT OPPORTUNITIES
20www.ramblermines.com
1000 MTPD OPTIMIZATION PLAN
• Copper Flotation Circuit Rated for 1,000 metric tpd.
• Production Constrained by Existing Crushing & Grinding Circuit i.e. 600 - 700 mtpd
• Mine Capable of Producing at 1,000 metric tpd with Trucking
• A New Crushing and Grinding Circuit would Improve Productivity• 600 mtpd to 1,000 mtpd Increases Revenues by 67% and Profitabilityp , p y y
• Keeping Existing Crushing & Grinding Circuit means Two Mills in Parallel
• Allows Production of Copper Concentrate and Gold Doré Simultaneously• Ming Mine (Copper), Ming Mine 1806 Zone (Gold), External Gold Properties• Revenues and Profitability Further Increased
21
Revenues and Profitability Further Increased
www.ramblermines.com
NUGGET POND MILL
Existing Gold H dromet
New Copper Flotation Mill@ 1,000 mtpd
Hydromet@ 630 mtpd
22www.ramblermines.com
MING COPPER GOLD MINE - LFZ
Shaft PEA Results:
+20 Year Mine LifeNPV5 = $251 M
• Density Media Separation (DMS)• 50% of LFZ is a Chloritic Schist• Specific Gravity between Chalcopyrite (4 0) and Chloritic Schist (2 7)
IRR = 18%Pre-tax Cash Flow = $861M (undiscounted)5 Year Capital Commitment $231M
Specific Gravity between Chalcopyrite (4.0) and Chloritic Schist (2.7)• DMS Theoretically Halves Tonnage and Doubles Grade• Preliminary Results Show 80% Copper Recovery• Allows Possible use of Nugget Pond, minimizing CAPEX
P i ld ll B kfilli f h Hi i l Mi• Pre-concentration could allow Backfilling of the Historical Mine
• Historical Pillars• 400,000 tonnes @ 3.5% Cu, 2.5 g/t Au and 10 g/t Ag (Non 43-101 Compliant)
Lower/ Upper Footwall Zone18.3 18.3 MMt t @ @ 1.43% 1.43% Cu & Cu & 0.09 0.09 g/t Aug/t Au
Contained MetalContained Metal
, % , g/ g/ g ( p )• Systematic Sampling Required to Make NI43-101 Compliant• Backfilling allows Pillar Recovery
Hi t i l T ili261,258 261,258 tonnes coppertonnes copper52,015 52,015 ounces goldounces gold794,102 794,102 ounces silverounces silver
• Historical Tailings• 4,000,000 tonnes @ 1 – 2 g/t Au 2km from Rambler Property• Metalurgical Testing On-going to Determine if Recoverable
23
All tonnes reported in the indicated category (copper cutoff of 1%) Open at Depth
www.ramblermines.com
KRISSY’S BUCKLE
• 2,300 Hectare Land Package Sandwiched between 3 Former Producing Mines; East Mine, Main Mine & Big Pond
• Numerous Untested Copper and Gold Anomalies with Three Main Trends already Defined• Krissy Trend – Priority Target 10.51 g/t gold over 1.75 m (including 31.9 g/t over 0.5 m)• Brass Buckle Trend• SB Trend
• Negotiated Property Arrangement Positive for Rambler with Low Upfront Capital Costs and Reasonable NSR
• Within 40 km of the Nugget Copper and Gold Processing Facility
24www.ramblermines.com
MINORITY INTEREST
Hammerdown Mine
Former Producing UG Mine Mined 2000 – 2004 Mined 2000 – 2004 Mined 315,000 @ 16.1 g/t Gold Produced 157,000 oz. Gold Processed at Nugget Pond Recovery 97%
Hammerdown Mine &
Orion Deposit
y Closed 2004 Gold Price $325 oz. NI43-101 Expected 2Q 2013
Orion Deposit
Newly Discovered 2Km from Hammerdown Open Pitable NI43 101 119K @ 5 2 /t NI43-101 119K oz. @ 5.2 g/t
Rambler Owns 17% of Maritime
25www.ramblermines.com
LOOKING FORWARD
• Continue to Pay Down Sprott Debt Facility Fully Re-Paid by Calendar YearendContinue to Pay Down Sprott Debt Facility. Fully Re Paid by Calendar Yearend
• Continue to Explore on the Ming Mine and Within the Immediate Area (e.g. Krissy Buckle)
• Continue with Project Work – 1000mtpd Optimization Plan and LFZ Opportunities
• Investigate Further Acquisitionsest gate u t e cqu s t o s• Market Conditions Favour Producers with Cashflow
26www.ramblermines.com
SUMMARY
• Producing Profitable Mine with Free Cash Flow
• Good Exploration Potential both On-Site and in the Immediate Area
• Stable Low Risk Jurisdiction in Historical Mining District with Good Infrastructure• Stable Low Risk Jurisdiction in Historical Mining District with Good Infrastructure
• Dual Functioning Mill Capable of Processing Base Metals and Gold
• Credible Management Team bringing Mine to Production in Volatile Markets
• Organic Growth Opportunities
• Acquisition Targets within Atlantic Canada
27www.ramblermines.com
R bl M t l & Mi i PLC Rambler Metals & Mining Canada LtdRambler Metals & Mining PLCSalatin House, 19 Cedar Road Sutton, Surrey, SM2 5DATel: +44(0)1483 419942
Rambler Metals & Mining Canada LtdP.O. Box 610, Baie Verte, NL, A0K 1B0Route # 418, Ming's Bight Road, NL, A0K 3S0 ( )
Fax: +44(0)1483 429255E-Mail: [email protected]
, ,Tel: 709-800-1929Fax: 709-800-1921
Our Company Vision is to become “The Leading Mine Operator
and Resource Developer in Atlantic Canada.”
www.ramblermines.com