MINING MILLING MARKETS A LEADING COPPER-GOLD PRODUCER IN ATLANTIC CANADA

Transcription

1 MINING MILLING MARKETS A LEADING COPPER-GOLD PRODUCER IN ATLANTIC CANADA OCTOBER 2014

2 FORWARD LOOKING STATEMENTS Caution Regarding Forward Looking Statements: Certain information included in this presentation, including information relating to future financial or operating performance and other statements that express the expectations of management or estimates of future performance constitute forward looking statements. Such forward looking statements include, without limitation, statements regarding copper, gold and silver forecasts for fiscal 2014 (including the information provided in any tables relating to production and concentrate forecasts for fiscal 2014), the financial strength of the Company, estimates regarding timing of future development and production and statements concerning possible expansion opportunities for the Company. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief are based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, the price of and anticipated costs of recovery of, copper concentrate, gold and silver, the presence of and continuity of such minerals at modeled grades and values, the capacities of various machinery and equipment, the availability of personnel, machinery and equipment at estimated prices, mineral recovery rates, and others. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward looking statements. Such risks include, but are not limited to, interpretation and implications of drilling and geophysical results; estimates regarding timing of future capital expenditures and costs towards profitable commercial operations. Other factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, increases/decreases in production; volatility in metals prices and demand; currency fluctuations; cash operating margins; cash operating cost per pound sold; costs per ton of ore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to successfully integrate acquired assets; operational risks inherent in mining or development activities and legislative factors relating to prices, taxes, royalties, land use, title and permits, importing and exporting of minerals and environmental protection. Accordingly, undue reliance should not be placed on forward looking statements and the forward looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward looking statements contained herein are made as at the date hereof and the Company does not undertake any obligation to update publicly or revise any such forward looking statements or any forward looking statements contained in any other documents whether as a result of new information, future events or otherwise, except as required under applicable law. RMM s qualified person, Mr. Larry Pilgrim, P. Geo., is responsible for verification and quality assurance of the exploration data and the analytical results set forth in this presentation. RMM is in full compliance with all NI rules and regulations. 2

3 ABOUT RAMBLER Copper Gold Producer in Newfoundland Operates the Ming Mine & Nugget Pond Mill Stable low risk jurisdiction Meaningful Growth Potential High tonnage Lower Footwall Zone (LFZ) Regional exploration properties and investments Proven Mine Developer and Operator Building a mid tier base metals company Assessing merger and acquisition opportunities Financially Strong Cash flow positive Solid, unlevered balance sheet *Note: Fiscal Year-End of 31 July 3

4 SHARE STRUCTURE Shares Outstanding 144,168,228 Options 5,506,000 Fully Diluted 149,674,228 Ticker RMM RAB Share Price (Oct 20, 2014) 0.25 $ Week Range ( ) ($0.36-$0.62) Cash Debt $9.0M nil Daily Volume (3 month) 195,000 11,500 Market Cap 36 M $ 63M HOLDER (as of September 2014) SHARES PERCENT Henderson Global Investors 28,878, AIM Price 0.35 Rambler Metals and Mining PLC TSX: RAB.V AIM: RMM.L TSX Price $0.60 Tinma International Limited 22,736, BlackRock Investment Management 13,053, Majedie Asset Management 10,988, $0.55 $0.50 $0.45 $0.40 $0.35 Legal and General Investment Management Whitmill Trust Co / Zila Corporation Hargreaves Landsdown Asset Management 9,691, ,838, ,274, Total 99,461,211 69% 0.20 Combined Volume 6,000,000 4,000,000 2,000,000 0 $0.30 4

5 MANAGEMENT & BOARD OF DIRECTORS MANAGEMENT Norman Williams,CA PresidentandCEO Chartered Accountant with over 15 years of financial and management experience. CFO of Rambler from 2010 to Tim Slater,ACA,CTA InterimCFO Managing Director of Harmer Slater Chartered Accountants United Kingdom. Has worked with Rambler since Peter Mercer Vice President, Corp. Secretary in the Geologist with nearly 15 years of exploration and development experience. Responsible for corporate development and managing the investor relations aspect of the business. Tim Sanford, P. Eng. VP Technical Services Professional Engineer with 17 years of experience at various supervisory levels, primarily related to underground development. Bob McGuire, P. Eng. General Manager Professional Engineer with over 35 years experience in underground mining, with a diverse background in supervisory and managerial positions in Canada and internationally. BOARD OF DIRECTORS George Ogilvie,P.Eng. Chairman Professional Engineer with over 20 years experience in the industry. Joined Rambler in 2006 with the mandate to bring the former producing Ming Mine back into production. Norman Williams,Director Harry Dobson Non Executive Director A mining industry veteran bringing many years of experience to the Company. Has been and remains as Director of several exploration and mining companies worldwide. John Thomson Non Executive Director CFO of Kirkland Lake Gold. Has worked internationally in a variety of senior roles for companies. Leslie Goodman Non Executive Director M.A. in Law from Cambridge University and practiced as a Solicitor in London. Dalis Chan Non Executive Director Brings international experience in the processing and marketing of non ferrous metals. Eason Chen Non Executive Director Has extensive knowledge and experience in Canadian and cross border listings, corporate governance and internal controls. 5

6 OPERATIONS NEWFOUNDLAND Geo Politically Stable Favourable Tax Regime Supportive Communities Experienced Workforce Paved Roads Fresh Water Electrical Grid Airports Port Ming Mine Goodyear s Cove Port Nugget Pond Facility Operations Exploration / Strategic Investment Kilometers St. John s Newfoundland and Labrador 6

7 HEALTH & SAFETY Fatalities Lost Times Medical Aids Total Injury Freq. Rate Number Dewatering Production 6.4 Construction Fiscal Year Frequency Rate 1 LTA in 7 Years of Continuous Operation 1,113 Days Since Last Lost Time Accident 157 Days Since Last Medical Aid Fiscal 2015 TIFR Target < 3 Over 1,408,401 person hours Worked 7

8 MING COPPER-GOLD MINE Underground copper gold mine Commercial production November 2012 Massive sulphides (Cu, Au, Ag, Zn) with stringer zones Sub level long hole mining method Production of ~630 tpd, capacity to increase to 1,000 tpd 2015 fiscal production forecast of 5,400 6,700 tonnes copper, ~6k ounces of gold and ~42k ounces of silver Mine sequencing 1806 high grade gold zone produced early in mine life 1807 copper rich and current focus Other high grade massive sulphides (North & South Zones) Phase I High grade Low tonnage Potential new crushing/grinding circuit at Nugget Pond Lower (LFZ) and Upper (UFZ) Footwall Zones large tonnage stringer zones Phase II Mine/Mill Optimization Bulk tonnage LFZ 8

9 FINANCIAL HIGHLIGHTS (YEAR ENDED JULY 31, 2014) Key Financial Highlights (CAD$, 000 s) * Revenue 62,110,000 34,669,000 Production costs 29,684,000 20,936,000 Profit before tax 13,503,000 2,985,000 Profit after tax 9,015,000 9,053,000 Earnings per share *Note: Commercial production commenced on November 1, 2012 The net profit for the year ended July 31, 2014 was $9,015,000 ($13,503,000 before tax) or $0.063 per share which compares to $9,053,000 ($2,985,000 before tax) for the year ended July 31, 2013 or $0.063 per share, representing an increase of $10,518,000 in before tax profit. Earnings before interest, taxes, depreciation, amortisation ( EBITDA ) for the year were $27,270,000 (2013: $9,419,000). Average production costs (before depreciation and amortisation) for the year were $138 (2013 $145) per tonne of ore milled and $1.51 (2013 $2.03) per equivalent pound of copper. The reduction in costs per tonne and equivalent pound of copper are mainly attributable to more tonnes milled compared with the previous year. Generated cash of $24.8 million (2013: $11.5 million) from operations during the year. Repaid its credit facility and became debt free in February

10 PRODUCTION SUMMARY PRODUCTION Q (Aug, Sep, Oct) Q (Nov, Dec, Jan) Q (Feb, Mar, Apr) Q (May, Jun, Jul) Fiscal 2014 (Actual) 2014 Guidance Dry Tonnes Milled 55,659 50,957 49,355 59, , , ,000 Copper Recovery 95.9 % 96.8 % 96.4% 96.7 % 96.4 % 92 94% Gold Recovery 61.7 % 69.1 % 66.2% 71.0 % 67.1 % 63 67% Silver Recovery 76.1 % 81.9 % 79.2% 75.9 % 78.1 % 55 65% Copper Head Grade (%) Gold Head Grade (g/t) Silver Head Grade (g/t) CONCENTRATE (Produced and Stored in Warehouse) Copper (%) Gold (g/t) Silver (g/t) Dry Tonnes Produced 6,591 6,818 6,238 6,000 25,647 20,000 24,000 Copper Metal (tonnes) 1,956 1,978 1,829 1,708 7,472 5,700 6,840 Gold (ounces) 1,655 1,551 1,608 2,107 6,921 4,500 5,500 Silver (ounces) 11,870 10,764 13,196 16,708 52,539 32,000 39,000 10

11 2015 FISCAL GUIDANCE Tonnes Milled Actual/ Forecast Copper Head Grade % Dry Tonnes 70,000 60,000 50,000 40,000 30,000 20,000 10,000-44,717 50,957 49,335 59,526 56,810 55, ,958 56, Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 *Note: Fiscal Year-End of 31 July * Quarter Actuals Copper Head Grade % PRODUCTION Fiscal 2015 CONCENTRATE Produced Dry Tonnes Milled 215, ,000 Dry Tonnes Produced 20,000 24,000 Copper Recovery % Copper (%) Gold Recovery % Gold (g/t) 6 8 Silver Recovery % Silver (g/t) Copper Head Grade (%) Copper Metal (tonnes) 5,400 6,700 Gold Head Grade (g/t) 1 2 Gold (ounces ) 5,600 6,600 Silver Head Grade (g/t) 6 8 Silver (ounces) 39,000 46,000 Fiscal 2014 Achieved 215,496 Dry Metric Tonnes 3.68% Copper Fiscal 2015 Guidance 215, , % Copper New crusher purchased to help further optimize Grinding Circuit ( DMT per Day) 11

12 MING MINE PHASE I Ramp Shaft 1806 Zone % Cu & 2.96 g/t Au South Zone (upper) % Cu & 1.12 g/t Au 1807 Zone % Cu & 2.04 g/t Au 1,800 ft level > 2.3% CuEq Reserve Cutoff 1806 Gold Reserve Historically Mined Areas Resource Outline (Excluding LFZ) Historically Mined Unmined Resources % Cu & 2.00 g/t Au South Zone (lower) 1, % Cu & 2.26 g/t Au Open at Depth North Zone Open at Depth 12

13 RESERVES AND RESOURCES (AS OF JANUARY 27, 2014) Reserve Summary (Phase I)* Quantity Grade Contained Metal (000't) Copper % Gold g/t Silver g/t Zinc % Copper lbs Total Proven Reserves 1, M 101, , M Resource Summary (Combined Measured and Indicated, Inclusive of Reserves)** 1807 Zone M 17, , M Other Massive Sulphide Zones 1, M 128, , M Total Massive Sulphide Zones 2, M 146, , M Gold oz Silver oz Zinc lbs 1806 Zone (gold rich) M 23, , M Phase II Resources (not currently included in reserve estimate targeting calendar Q2 2015) Stringer Sulphides (LFZ + UFZ) 18, M 51, , M * All figures are rounded to reflect the accuracy of the estimate. This reserve statement reflects changes to reserves in the 1807 and 1806 zones based on i) 1807 Zone depletion due to mining, ii) 1807 Zone additions due to new exploration drilling results, and iii) 1806 Zone depletion due to mining. The NSR of the 1807 zone reserve material was calculated using all in costs of $146.86/tonne of ore milled, and forecast metal prices of US$3.15 per pound copper and US$1294 per ounce gold, and US$19.13 per ounce silver. The US/CAN FX rate is 1:1. The calculated reserve cut off grade (in copper equivalent terms) is 2.33 per cent copper. ** Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the accuracy of the estimate. Cut off grades of 1.0 per cent copper for the massive sulphides, 1.25 grams per tonne gold for the 1806 zone, 1.00 per cent copper for the stringer sulphides have been used in the estimate. Cut offs are based on an NSR model and long term metal prices of US$3.15 per pound copper and US$1294 per ounce gold, and US$19.13 per ounce silver. Zinc does not contribute to the revenues. 13

14 MING MINE PHASE II (LFZ/UFZ) The Lower Footwall Zone (LFZ) is located ~100 m below Ming s massive sulphide zones Typically between 20 m and 70 m thick, has potential to be a low cost bulk underground mining operation PEA March 2012 envisioned a bulk tonnage operation at 3,750 tpd with a 20 year potential life of mine Company currently evaluating a stage approached with a more efficient use of capital utilizing Dense Media Separation (DMS) Allows possible use of Nugget Pond, minimizing CAPEX +95% Copper Recovery, Head Grade Increased from 1.4% to % Cu 30 40% Waste Material can be removed Further engineering work including a reserve and resource statement being planned for calendar 2015 Allows for stage upgrade as required over a period of time Shaft Lower/ Upper Footwall Zones % Cu & 0.09 g/t Au Open at Depth Bench scale work completed Pilot plant completed Plan for demo on site fiscal Q1/Q

15 NUGGET POND MILL & GOODYEAR S COVE PORT Nugget Pond Mill Snook s Arm, NL 40 km from Ming Mine; ~95% copper recovery Crushing & grinding circuit capacity: tpd Copper flotation circuit capacity: 1,000 tpd Ming Mine capable of producing at 1,000 tpd by ramp Low capital option to increase mill throughput to 1,000 tpd without separating the circuits A new crushing and grinding circuit will improve and optimize productivity 630 tpd to 1,000 tpd increases production by 59% Allows two mills, copper (floatation) and gold (CIP), to be run in parallel Production of Copper Concentrate and Gold Doré simultaneously allows opportunity for second revenue stream Baie Verte Peninsula Ming Mine Nugget Pond Facility Goodyear s Cove Port Gold Hydromet Copper Concentrator 630 tpd 1,000 tpd Goodyear s Cove Port Facility South Brook, NL Deep water, year round access to North American and European shipping lanes 15,000 wmt concentrate storage facility capable of loading ships at a rate of 850 wmt per hour 15

16 CONCENTRATE SHIPMENTS 1 st Nov 12 2 nd Feb 13 3 rd May 13 4 th Oct 13 5 th Jan 14 6 th Apr 14 7 th Jul 14 8 th Sep 14 Total Warehouse Inventory* Wet Metric Tonnes 8,873 3,150 6,103 7,765 6,641 8,925 5,378 5,295 52,130 2,400 % Moisture 8.5% 8.5% 8.4% 7.9 % 8.5% 8.4% 8.4% 8.2% 8.3% % Dry Metric Tonnes 8,119 2,882 5,590 7,152 6,057 8,175 4,928 4,858 47,761 2,200 Cu. Grade % 26.1 % 28.6 % 28.3 % 29.0 % 28.3 % 28.5% 28.0% % % Ibs. Cu. Metal 4.83M 1.81M 3.49M 4.42M 3.78M 4.95M 3.04M 2.98M 29.30M M Gold Grade g/t 5.6 g/t 6.8 g/t 6.6 g/t 8.0 g/t 7.36 g/t 7.2 g/t 10.0 g/t 10.9 g/t 7.6 g/t 9 10 g/t Silver Grade g/t 47 g/t 47 g/t 50 g/t 61 g/t 51 g/t 55 g/t 83 g/t 83 g/t 59 g/t g/t Revenue (approx) $20M $7M $13M $17M $13M $18M $11 $11 $110M *As of 20 October ,000 Wet Metric Tonne Off Take Agreement Rambler is Paid 90% of Provisional Value of Concentrates when in Warehouse Off take allows Rambler to Hedge Concentrate in Storage if so Desired Clean Concentrate No Deleterious Material 16

17 REGIONAL EXPLORATION Krissy s Buckle Hammerdown/Orion Little Deer Operations Exploration / Strategic Investment Valentine Lake Kilometers St. John s Newfoundland and Labrador 17

18 NEAR-MILL OPPORTUNITIES Little Deer Project (50%) Two former producing copper mines connected by drift 276 Mineral claims in 4 mineral licenses over 65 km 2 96 diamond drill holes for 54,998 m and historical information $8M invested by Cornerstone and Thundermin in last 5 Years Excellent infrastructure (roads, power, water,) 2014 (fiscal) drill program completed Krissy s Buckle (100%) 2,300 hectare land package located between 3 former producing mines: East Mine, Main Mine & Big Pond Within 35 km of Nugget Pond Numerous untested Copper and Gold anomalies with three main trends already defined: 1. Krissy Trend (10.51 g/t gold over 1.75 m incl g/t over 0.5 m) 2. Brass Buckle Trend 3. SB Trend Planning for (fiscal) exploration program underway Little Deer Whalesback 3D View (Looking West) Resources* Tonnes Cu % Cu lbs (M) Indicated 2,708, Inferred 4,191, *Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the accuracy of the estimate. Visible Gold 18

19 STRATEGIC INVESTMENTS Maritime Resources Corp. (17.6% Ownership) Near Mill Opportunity: leverage Rambler s infrastructure Hammerdown Mine (Green Bay Property) Former Producing UG Mine ( ) Mined 15.8g/t Gold (7 g/t cutoff) Recovered 143,000 oz. Gold (97% recovery) Processed at Rambler s Nugget Pond Mill Closed at gold price of $325 per ounce Marathon Gold Corp. (3.6% Minority Interest) Advanced exploration Valentine Lake Project 100% owned by Marathon Gold Corporation Gold deposits form part of a 23 km, highly prospective gold bearing mineralized corridor Drilling to expand the open pit resources at the Victory Deposit and to test the new mineralization at Sprite Hammerdown Tonnes (kt) Grade (g/t) Gold (oz) Measured & Indicated ,100 Inferred 1, ,000 Orion Tonnes (kt) Grade (g/t) Gold (oz) Measured & Indicated ,500 Inferred ,100 *While Maritime Resources Corp. has completed a NI technical report on the property, a qualified person from Rambler has not done sufficient work to classify the work as current mineral resources or mineral reserves; as such Rambler is not treating the historical estimate as current mineral resources or mineral reserves. Leprechaun Gold Deposit Tonnes (kt) Grade (g/t) Gold (oz) Measured & Indicated 10, ,000 Inferred 1, ,000 Victory Gold Deposit Tonnes (kt) Grade (g/t) Gold (oz) Indicated ,000 Inferred ,000 *While Marathon Gold Corporation has completed a NI technical report on the property, a qualified person from Rambler has not done sufficient work to classify the work as current mineral resources or mineral reserves; as such Rambler is not treating the historical estimate as current mineral resources or mineral reserves. 19

20 LOOKING FORWARD Near Term Focus Optimize mine and mill to increase throughput up to 1,000 tpd Further advance optimization studies for game changing Lower Footwall Zone (prefeasibility planned for 2H 2015) Continued near mine exploration Longer Term Strategy Focus on identifying new resources and conversion of existing resources to reserves Exploring select regional growth opportunities Continue to assess high quality merger and acquisition opportunities 20

21 INVESTMENT SUMMARY Producing profitable copper gold miner with free cash flow and clean balance sheet Lower Footwall Zone has game changing potential Management with strong track record of mine development and operation Stable low risk jurisdiction in historical mining district High potential to leverage existing infrastructure Regional exploration portfolio upside 21

22 Rambler Metals & Mining PLC Salatin House,19 Cedar Road Sutton, Surrey, SM2 5DA Tel: +44(0) Fax: +44(0) E Mail: investors@ramblermines.com Rambler Metals & Mining Canada Ltd P.O. Box 610, Baie Verte, NL, A0K 1B0 Route # 418, Ming's Bight Road, NL, A0K 3S0 Tel: Fax: Our Company Vision is to become Atlantic Canada s Leading Mine Operator And Resource Developer