HIGH GRADE EXPANDINGCOPPER-GOLD … · of and anticipatedcosts of recovery of, ... title and...
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HIGH-GRADE EXPANDINGCOPPER-GOLDPRODUCER CANADA
NOVEMBER 2017RAB TSXVRMM AIM
FORWARD LOOKING STATEMENTS
CautionRegarding Forward Looking Statements:Certain information included in this presentation, including information relating to future financial or operating performance and otherstatements 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 and gold forecasts for fiscal 2017 (including theinformation provided in any tables relating to production and concentrate forecasts for fiscal 2017), the financial strength of the Company,estimates regarding timing of future development and production and statements concerning possible expansion opportunities for theCompany. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief arebased on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, the priceof and anticipated costs of recovery of, copper concentrate and gold, the presence of and continuity of such minerals at modeled gradesand values, the capacities of various machinery and equipment, the availability of personnel, machinery and equipment at estimatedprices, 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-lookingstatements. Such risks include, but are not limited to, interpretation and implications of drilling and geophysical results; estimatesregarding timing of future capital expenditures and costs towards profitable commercial operations. Other factors that could cause actualresults, 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 ofore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to successfullyintegrate 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 relianceshould not be placed on forward-looking statements and the forward-looking statements contained in this press release are expresslyqualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereofand 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 asrequired under applicable law.
RMM’s qualified person, Mr. Larry Pilgrim, P. Geo., is responsible for verification and quality assurance of the exploration data and theanalytical results set forth in this presentation. RMM is in full compliance with all NI43-101 rules and regulations.
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WHY OWN RAMBLER?
3*Note:Pendingdetailedengineeringstudies.**C1=Netdirectcashcostsperpoundofsaleablecoppernetofby-productcredits
Location HighGradeCopper ExpandingProductionNewfoundland,Canada
Stable,low-riskjurisdiction inhistoricalminingdistrict
RisingCopperMarket
Location
PhaseI
650mtpd
PhaseII
Fall2017
1250mtpd
PhaseIII*
ThroughputIncrease
2,000mtpd
LongMineLife20Years
~16MPoundsofCopper Annually
ImprovingC1CostsTargetingDecreasein
C1Costs**
ExplorationDrillProgramCurrently
Underway
THE RIGHT TEAM
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NormanWilliams,CPA,CA– President,CEOandDirector+20yearsoffinancialandmanagementexperienceFormerCFOofRambler2010-2014
PeterMercer – VPandCorp.SecretaryGeologistwith+15yearsofexplorationanddevelopmentexperience
TimSanford,P.Eng.– VPTechnicalServices+23yearsofexperienceatvarioussupervisory levels,primarilyrelatedtoundergrounddevelopmentandproduction
ScottBritton,P.Eng.– GeneralManager+35yearsexperience inunderground mining
TimSlater,ACA,CTA– InterimCFOMDofHarmerSlaterCharteredAccountantsintheUnitedKingdom
BradfordMills–Director,Chair+30yearsintheresourceindustry. FounderandmanagingdirectorofPlinian.CurrentlyExecutiveChairmanatMandalayResources.
GlennPoulter–LeadDirectorExecutiveMBA,CassBusinessSchool,specializinginfinanceandstrategy.+30yearsofexperiencewithfinancialservicesintheUK.
MarkSander– Non-ExecutiveDirectorPhD inOreDepositsandExplorationandactiveinthemineralresourceindustry for+25years.PresidentandCEOatMandalayResources.
BelindaLabatte– Non-ExecutiveDirectorMBAfromRotmanSchoolofManagementandCFAcharterholder.ChiefDevelopmentOfficeratMandalayResources.
TerrellAckerman– Non-ExecutiveDirector40+yearsintheresourceindustry.FormerinterimCEOatStillwaterMining.
EasonChen– Non-ExecutiveDirectorExtensiveknowledgeandexperienceinCanadianandcross-borderlistings,corporategovernanceandinternalcontrols.
BOARD OF DIRECTORSMANAGEMENT
ProvenTeamwithaTrackRecordofMineDevelopmentandOperations
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STRONG COPPER FUNDAMENTALS
$1.75
$2.00
$2.25
$2.50
$2.75
$3.00
$3.25
CopperCashOfficialComex ($/lb)
ExpandingitsOperationinaRisingCopperMarket
SHARE STRUCTURE
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Ticker RMM RAB
SharePrice(November16,2017)
£0.081 $ 0.13CAD
52WeekRange (£0.08-£0.13) ($0.11-$0.22)
DailyVolume 55,000 18,000
MarketCap. £44M $71MCAD
SharesOutstanding 549M
Options 13M
Warrants(£0.05 June2018) 65M
Cash $2M
ShareholdersAsofAugust31,2017
Institutional Shareholders
CEMiningII 72%
LombardOdier 6%
CIGlobalInvestments 5%
TinmaInternational 4%
UBSAssetManagement 3%
Float&RetailNetwork 10%
StrongInstitutionalShareholderSupport
Unlessotherwise indicatedallcurrency isUSD
COPPER-GOLD PRODUCTION
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§ Underground copper-goldmine§ 100%Ownership§ PhaseICommercialProduction
startedin2012§ LandPackage1640Hectares§ 195Employees
100%OwnershipinProducingCopper-GoldMine
Nugget Pond Mill
Block 1
Block 2
Block 3
Block 4
Block 5
Block 6
Historical Shaft
Lower Footwall Zone
1800 lv
Ramp
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MING COPPER-GOLD MINE
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Mineral ReserveClassification
T(‘000)
Cu (%)
Au (g/t)
Cu M lbs
Au K Oz
Proven* 5,205 1.98 0.43 226.9 71.6
Probable* 3,050 1.99 0.76 133.8 74.2
Total Reserve (diluted, recovered) 8,667 1.79 0.48 341.2 133.5
Note:ProvenandProbable(undilutedandunrecovered)SeeAppendixforfurtherdetail
Development
LongholeDrilling
DrilledStope
BlastedOre
Modified Sub-level Longhole Mining
Transverse Long-hole Mining
Post Pillar Cut and Fill Mining
PhaseIIExpansionFocusesontheAdditionofLFZOreintotheProductionProfile
PHASE II EXPANSION NEAR COMPLETE
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§ Targetingsustainedproduction of1,250mtpd inNovember2017,currentlyaveraging1,246mtpd
§ PhaseIInearcompleteafter14monthsofmineoptimizationanddevelopment
§ MultipleLFZstopesnowinproduction
§ Ventilationupgradeprojectinprogress
§ Highgrade/lowercostorefromLFZstopeswillresultinlowercopper costperpound
§ Addition ofapasteplant(2018/19)
§ Expansionofexistingtailingsdams(2019)
PhaseIIExpansionContinues:Targeting1,250tpdFall2017
CURRENT PRODUCTION & COSTS
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§ WiththemainLFZstopeproduction comingonlinemillfeedgradeisimproving allowingthecostperpound ofproduction toreduce
§ ThiswillcontinuetodriveC1costsdownward§ Thegoalistoprovide flexibilityfortheminetooperateinvaryingcopperprice
environments
Stub 2017 : 5 month period from Aug. 1- Dec. 31, 2016 – transition to calendar year-end
PhaseIIDevelopmentUnderway
*C1–netdirectcashcostperpoundofsaleablecoppernetofby-productcredits
PhaseIIExpansion:OptimizeandImproveOperatingEfficiencies
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
0
0.5
1
1.5
2
2.5
3
3.5
4
Q1/2017 Q2/2016 Q3/2016 Q4/2016 Stub 20175 Month Period
Q1 2017 Q2 2017 Q3 2017
C1
Cos
t
Poun
ds o
f Sal
eabl
e C
u in
Mill
ions
Pounds of Saleable Cu and C1 CostSaleable CU, M lbs C1 $US
FINANCIAL KPIS @ 1,250 MTPD
11*DatasourceNI43-101July2015TechnicalReportwithbasecaseKPI’srepresentedatlong-termCuof$2.79/lb
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$2.25 $2.65 $2.79 $3.00 $3.25
000'spera
nnum
USD$Cu/lb
EBITDA NetOperatingCash FreeCash
AttractiveFinancialProfileatVaryingCopperPrices
FINANCIAL RESULTS & GUIDANCEALL AMOUNTS IN $US ‘000S, UNLESS OTHERWISE STATED.
12*C1=Netdirectcashcostsperpoundofsaleablecoppernetofby-productcredits**RevisedGuidanceasofNovember2,2017
2017Q3 Q2 Q1
Revenue(M) $7.3 $6.9 $5.7
EBITDA(M) $1.1 $1.2 ($1.5)
CashFlowsfromOps.(M) ($2.5) $0.5 ($2.1)
C1CashCosts* $2.87 $2.44 $3.39
Copper(tonnes) 1,004 1,112 794
Gold(ounces) 930 939 391
ConcentrateCopper(%) 28.9 26.6 28.2
ConcentrateGold(g/t) 9.9 7.7 5.2
AverageCopperPrice $2.86 $2.56 $2.63
Fiscal2017Guidance**
DryTonnesMilled 330,000- 360,000
CopperRecovery(%) 94– 96
GoldRecovery(%) 60–65
CopperHeadGrade(%) 1.3- 1.6
GoldHeadGrade(g/t) 0.5- 1.0
ConcentrateCopper(%) 26- 28
ConcentrateGold(g/t) 4.0- 8.0
DryTonnesProduced 14,000- 16,000
Copper(tonnes) 3,800– 4,200
Copper(Mlbs) 8.5– 9.5
Gold(ounces) 3,400– 3,900
ImprovingQuarteroverQuarterFinancialandOperatingResultsin2017
NEAR TERM GROWTH WITH A LONG MINE LIFE
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TargetingAverageproductionof~16MPoundsperyearoverthe20YearMineLife
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Copp
er, L
bs
Mill
Fee
d, T
MillFeedandSaleableCopperProduced
LFZ Mill Feed MMS Mill Feed Saleable Cu, Lbs
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FUTURE GROWTH OPPORTUNITIES
FurtherExpansion– PhaseIII§ Increaseorethroughputbeyond1,250mtpd -
targeting2,000mtpd§ Considerations/benefits include:
I. UGmaterialhandlingoptionsincluding potentialrehabofoldshafttohoist2,000mtpd
II. Improvedprojecteconomicswithhigherannualcopperoutputandlowerunitcosts
§ InitiatefurtherEngineeringstudies– including aDefinitiveFeasibilityStudy (‘DFS’)
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SHAFT
FurtherExpansionOpportunitiestoIncreaseProductionto2,000mtpd
EXPLORATION POTENTIAL - MMS
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1807 Zone
Ming South Zone
Ming North Zone
1806 Zone
Previous Mining HorizonRecent Intersection of:
Ø 16.8 m of 1.8% Cu with 1.8 g/t Au
1800 ft lv
RM03-02 intersected4.1 meters of 3.0 % Cu with 2.8 g/t Au~1 km beyond historic workings
All Zones Remain Open at Depth
Surface SurfacePortal
East West
Short term exploration focused on:
1. Continued Replacement of Reserves & Resources
2. Explore down-plunge of current mining fronts
3. Outward exploration to test extents of known mineralization
§ ExplorationhasbeensuccessfulinreplacingMMSreservesyearoveryear
§ Withfurtherdrillingthereisthepotentialfornewsourcesofhighgrademassive sulphides fortheoperation
§ MingNorthZone(MNZ)washistorically theprimarymininghorizonhoweverremainslargelyunexplored atdepth
§ RecentMingNorthZonehasshown continuedmineralizationatdepth.Highlightsinclude:• R17-675-04:4.00mof3.17%Cu
with6.56g/tAu• R17-675-05:21.00mof3.10%Cu
with1.13g/tAu• R17-675-07:17.97mof2.79%Cu
with1.73g/tAu
HistoricalSHAFT RM17-25
~145 m
~-1,200 m
~-700 m
Lower Footwall Zone
Target Expansion Area
RM17-25aEOH 1771m
RM17-25bEOH 1686m
3D Isometric View Looking North West
1,000 m
SURFACE DRILL PROGRAM ONGOING
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§ Surfacedrilling indicatinggradesandthicknessareimprovingwithdepth
§ Newdrillprogramongoingtestingupto1kmofunexploredground
§ LFZ:40.00metersof1.42%Cu;including 7.57metersof2.27%Cu
§ MMS:Lowerlens6.30metersof2.85%Cuand2.99g/tAu
DrillingToTestingBeyondtheKnownMineralization
SAFETY & HEALTH
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• 1losttimeaccident sincethestartofconstructionin2011
• 2,240DaysSinceLastLostTimeAccident(1044Dayssincelastmedicalaid)
• Fiscal2017TIFRTarget<3
• Over2.4millionpersonhoursworkedontheprojecttodate
Winner of the 2016 John T Ryan Safety Award from the Canadian Institute of
Mining, Metallurgy and Petroleum ('CIM')
• Noreportableexceedancesorenvironmentalincidents in3fiscalyears
• Strongcommitmenttosafetyandenvironment
• Committedtocommunityengagementwithafocusonregionalbenefits
ENVIRONMENT & COMMUNITY
SAFETY, HEALTH, ENVIRONMENT & COMMUNITY
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4.3
6.4
1.14 0.571.26
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5
10
15
2011 2012 2013 2014 2015 2016 2017
FrequencyRate
Number
FiscalYear
Fatalities Lost Times Medical Aids Total Injury Freq. Rate
Construction
Production
ExceptionalHealth,SafetyandEnvironmentalRecord
NearTermFocus– PhaseII
§ Optimizeandimproveoperatingefficiencieswithproductionat1,250mtpd
§ Continuewithexplorationanddelineationdrillingprogramstoreplaceandextendknownorebodies
§ UpdateNI43-101TechnicalReport
LongerTermStrategy- PhaseIII
§ Furtheradvanceengineeringstudiestargetingproductionat2,000mtpd
§ InitiateaDefinitiveFeasibilityStudy
§ Withexpansionplansontrack,wecontinuetoreviewM&Aopportunitiesonanopportunisticbasis
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LOOKING FORWARD
ProducingHighGradeCopper-GoldMinerExecutinganExpansioninanUpwardTrendingCopperMarket
ProducingHighGradeCopper-GoldExecutingOperationsExpansionin
anUpwardTrendingCopperMarket
Rambler Metals & Mining PLCSalatinHouse19CedarRoadSuttonSurrey,SM25DAUnitedKingdomTel: +44(0)2086522700Fax: +44(0)2086522719
Rambler Metals & Mining Canada LtdP.O.Box610BaieVerte,NL,A0K1B0Route#418Ming'sBightRoad, NLTel: 709-800-1929Fax: 709-800-1921
MINERAL RESERVE AND RESOURCE(RESERVE AS OF 20 JULY 2015)
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Classification
Quantity Grade Contained Metal
tonnes Copper%
Goldg/t
Silverg/t
Zinc%
CopperMlbs
GoldKoz
SilverKoz
ZincMlbs
TotalProven Reserve(undiluted, unrecovered)
5,205,300 1.98 0.43 3.08 0.07 226.9 71.6 515.5 8.4
TotalProbable Reserve(undiluted, unrecovered)
3,050,100 1.99 0.76 3.19 0.10 133.8 74.2 312.4 6.6
Dilution (allsources) 1,374,500 0.61 0.06 0.70 0.01 18.5 2.6 30.7 0.3
Reserve(dilutedandrecovered) 8,667,000 1.79 0.48 2.77 0.07 341.2 133.5 772.8 13.8
MineralReserveEstimateSummaryfortheMingCopper-GoldMine 1 (ResourcesareInclusiveofReserves)
MineralResourceEstimateSummaryfortheMingCopper-GoldMine(2)
MeasuredTotal 19,127 1.50 0.23 1.90 0.05 632.0 141.8 1,167.9 19.9
IndicatedTotal 9,199 1.53 0.39 2.07 0.07 310.5 115.3 613.5 14.3
M&I Total 28,326 1.51 0.28 1.96 0.05 942.5 257.1 1,781.4 34.2
InferredTotal 5,086 1.51 0.66 3.75 0.21 169.7 107.8 613.4 23.6
LOWER FOOTWALL ZONE RESOURCE(COPPER CUT-OFF SENSITIVITY)
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CopperCut-offGrade
Quantity Grade ContainedMetal
(000't) Copper%
Goldg/t
Silverg/t
Zinc%
Copperlbs
Goldoz
Silveroz
Zinclbs
0.25 68,622 0.96 0.09 0.98 0.02 1,451,097,627 193,484 2,159,594 29,245,136
0.50 57,632 1.07 0.09 1.05 0.02 1,357,287,418 169,203 1,942,167 24,593,816
0.75 40,936 1.25 0.10 1.16 0.02 1,126,324,596 128,553 1,527,440 17,296,650
1.00 25,958 1.47 0.11 1.28 0.02 839,593,090 87,667 1,071,175 10,875,301
1.25 16,025 1.69 0.11 1.41 0.02 595,434,650 57,649 727,852 6,574,685
1.50 9,427 1.91 0.12 1.56 0.02 396,656,024 36,580 472,111 3,845,516
1.75 5,380 2.13 0.13 1.73 0.02 252,605,662 22,393 298,499 2,220,336
2.00 2,860 2.36 0.14 1.88 0.02 149,083,363 12,685 172,891 1,203,654
MeasuredandIndicatedMineralResourceEstimateCombined
(1) Allfiguresareroundedtoreflecttheaccuracyoftheestimate;numbersmaynottotalduetothisrounding.Thisreserve statementreflectschangestoreservesinthemassivesulphidesbasedondepletionduetominingandadditionsdue tonewexplorationdrillingresults.TheNSRforthereservematerialwascalculatedusingan all-incostsof$147pertonneoforemilledforthemassivesulphidesand$118pertonneof oremilledforthelowerfootwallzone.
ForecastlongtermmetalpricesofUSD$2.79perpoundcopperandUSD$1,100perouncegold,andUSD$15.50perouncesilverwitha longtermUSD/CDNFXrateof1:0.88.
(2)MineralResourcesarenotMineralReservesandhavenotdemonstratedeconomicviability.Allfiguresareroundedtoreflecttheaccuracyoftheestimate.Cut-offgradesof1.0percentcopperforthemassivesulphides, 1.25gramspertonnegoldforanygoldzonesand1.00percentcopperforthestringersulphideshavebeen usedintheestimate.
Cut-offs arebasedonanNSRmodelandforecastlongtermmetalpricesofUSD$2.79perpoundcopper andUSD$1,100perouncegold,andUSD$15.50perouncesilverwithalongtermUSD/CDNFXrateof1:0.88.Zincdoesnotcontributetotherevenues.Resourcesareinclusiveofreserves.