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Rambler Metals (RMM) Share Price Rallied 11.8% As Copper Production Improves

Updated: 15 Nov 2021

Rambler Metals and Mining PLC (LON: RMM) share price rallied 11.76% after releasing positive operations update for the three months from June to October 2021.

The copper and gold mining company with operations in Canada’s Newfoundland and Labrador province revealed that it had more than doubled the rate at which it produced salable copper from 197 tonnes in June to 521 tonnes in October.

The company attributed the improved results to higher feed grades and rates during the period, the underground miner’s arrival on the site, and the acceleration of its operations.

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Rambler Metals told investors that the first ore was found in the Upper Footwall Zone (UFZ) and the Lower Footwall Zone (LFZ). The company noted that it mined high-grade development ore at the UFZ, which produced ore with 2% to 12% copper.

Investors cheered the announcement, as evidenced by today’s rally. However, the mining company’s share price has been rising for the past month since it is up 83.95% during the period.

Rambler Metals shares have been driven higher by positive developments such as the repayment of its convertible notes facility on 1 November 2021.

The company also saw its losses shrink significantly during the first half of 2021, where it reported a $2.1 million loss, compared to the $6.6 million loss recorded in H1 2020.

The miner also secured a bridge loan facility of $1 million from Newgen Resource Lending Inc, which helped cover its operating costs.

Toby Bradbury, President and CEO, commented: “The Company is pleased to provide this update in the context of the turn-around process at Ming Mine, against a backdrop in recent months of constrained financial resources and dealing with Covid-19. In future, the company intends to revert to reporting operational results to the market on a quarterly basis. The operational data presented here shows that, even before closing the financing, we have been steadily improving our operations.”

Investors who missed out on the recent rally in RMM shares should not chase the price higher since the shares are approaching a resistance zone where we are likely to get a pullback. Therefore, I would wait for a pullback before jumping in, and I have identified the 30p level as a crucial support level, which is likely to hold over time.

*This is not investment advice. Always do your due diligence before making investment decisions.

Rambler Metals share price.

IG chart of Rambler Metals share price 15-11-2021
Source: IG

Rambler Metals share price rallied 11.76% to trade at 36.88p, rising from Friday’s closing price of 33.00p.

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