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Rambler Metals & Mining Makes Maiden Profit

Rambler Metals and Mining (LON:RMM, CVE:RAB) has announced its maiden profit in its first full quarter as a commercial copper and gold producer.

In the three months to January 31, 2013, the group logged a pre-tax profit of C$1.93mln, compared to a loss in the corresponding quarter of last year of C$1.04mln.

Revenue was C$11.4mln. A total of 5,353 wet metric tons (wmt) of concentrate were provisionally invoiced during the period at an average price of $3.55 per pound copper, $1,688 gold per ounce gold and $31.86 per ounce silver.

In the previous year there had been no revenue in the quarter.

Earnings per share totalled 1.4 cents, as against a loss of 0.9 cents the year before.

Concentrate produced during the three month averaged 28% copper with seven grams per tonne (g/t) gold and 51 g/t silver, versus 27% copper with 6g/t gold and 49 g/t silver a year earlier.

Milling recoveries for copper and gold averaged 88% (2013:90%) and 62% (2013: 65%), respectively.

Cash resources (including short-term investments) at the end of January were C$7.3mln and had declined to C$5.0mln by March 27. However, operating cash flows are anticipated to continue to build throughout the balance of the fiscal year now the revenues are flowing in.

"Q2 2013 was Rambler's first quarter as a commercial producer, and we are proud to see our first profit from the new operation," said George Ogilvie, president and chief executive officer of Rambler.

"We have retained the financial flexibility to fulfil our operational goals of continuing development and exploration of the Ming Copper-Gold Mine while optimising the Nugget Pond processing facility. We will also continue the work we started in Q1 2013, to reduce costs and improve efficiencies," he added.

Shares in London rose 3.4% to 34p in the first half hour of trading.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.