INVESTOR UPDATE PRESENTATION INVESTOR UPDATE PRESENTATION 21 M 21 M - - PowerPoint PPT Presentation

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INVESTOR UPDATE PRESENTATION INVESTOR UPDATE PRESENTATION 21 M 21 M - - PowerPoint PPT Presentation

MINING MILLING MARKETS C ANADA S N EWEST COPPER AND GOLD P RODUCER INVESTOR UPDATE PRESENTATION INVESTOR UPDATE PRESENTATION 21 M 21 M AY AY 2013 2013 F ORWARD L OOKING S TATEMENT RMM financial and operational press releases and


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SLIDE 1

CANADA’ S NEWEST COPPER AND GOLD PRODUCER

MINING MILLING MARKETS

INVESTOR UPDATE PRESENTATION INVESTOR UPDATE PRESENTATION 21 M 21 MAY

AY 2013

2013

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SLIDE 2

FORWARD LOOKING STATEMENT

RMM financial and operational press releases and presentations are available, together with Management’s Discussion and Analysis and 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 the expressions “anticipate” “believe” “plan” “estimate” “expect” “intend” and similar expressions to the extent they relate to the expressions anticipate , believe , plan , estimate , expect , intend and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts but reflect the Company’s current expectations regarding future results or events and are based on information currently available to management. Certain material factors and assumptions are applied in providing these forward-looking statements. Management believes that the expectations reflected in forward-looking statements are based on reasonable assumptions; however Management 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 about potential discoveries or extensions of mineralization and deposits are examples of forward-looking statements. There is no guarantee that any discovery of commercial mineralization will be made on any of RMM’s properties. The material factors or assumptions that were applied in providing these forward-looking statements are contained in various security filings, including the Company’s MD&A contained in the 2008 Annual Report and quarterly MD&A’s all of which are available on SEDAR at www sedar com and the contained in the 2008 Annual Report and quarterly MD&A’s, all of which are available on SEDAR at www.sedar.com and the Company’s website. Undue reliance should not be placed on any of the Company’s audio, visual or written forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publically update any such statement or to reflect new information or the occurrence of future events or circumstances except as publically update any such statement or to reflect new information or the occurrence of future events or circumstances, except as may 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 and the analytical results set forth in this presentation. RMM is in full compliance with all NI43-101 rules and regulations.

2

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SLIDE 3

CORPORATE INFORMATION

Management Management

George Ogilvie, P. Eng. (CEO, Director), Norman Williams, CA, (CFO), Peter Mercer (VP Corporate Development), Tim Sanford, P. Eng. (VP Technical Services) and Bob McGuire, P. Eng. (General Manager)

Board Board of Dire irectors tors and and Office fficers rs

Harry Dobson, John Thomson, Brian Hinchcliffe, Stanley Neamonitis, Leslie Goodman, Dalis Chan and Eason Chen

Market Fac Market Facts (May 17 s (May 17th

th, 2013

, 2013 ) )

Shares Outstanding: 143,235,614 Options: 4,002,000 F ll Dil d Fully Diluted: 147,237,614 Current Share Price: £ 0.24 52 Week Range: £ 0.24 - £0.38 Market Cap: £ 36 M Market Cap: £ 36 M Cash: £ 3.5 M* (*Additional $ 2M in Inventory and $ 3M in Credit Facility)

3

www.ramblermines.com www.ramblermines.com

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SLIDE 4

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 53

  • 3. 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 5.82 j g , , Total Insiders 81 M 56% Average Trading Volume on AIM – 290,671 shares Average Trading Volume on TSX-V – 43,042 shares

4

www.ramblermines.com www.ramblermines.com

as of April 2013

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SLIDE 5

ASSETS

Ming Ming Copper-Gold Copper-Gold Mine, Mine, Baie aie Verte, erte, NL, L, Canad Canada

The Ming Copper-Gold Mine is 100% owned by Rambler and was brought back into production in December

  • 2011. Initially producing Gold Doré before switching over to Copper Concentrate production with Gold and

Silver credits in the concentrate from May 2012. y

Nugget Nugget Pond Pond Gold Gold Hydrom Hydromet etallurgic lurgical Mill, Mill, Snook’s Snook’s Arm, Arm, NL, NL, Cana anada

In 2009 the Company acquired the 500 mtpd Nugget Pond Gold Hydrometallurgical Mill for C$ 3.5M from Crew Gold. The Company then invested C$15M in a new 1,000 mtpd copper flotation circuit giving the mill Crew Gold. The Company then invested C$15M in a new 1,000 mtpd copper flotation circuit giving the mill dual functionality of producing a Gold Doré or Copper Concentrate. The plant has a permitted tailings pond with a minimal 10 year life that could be significantly increased with raising of the two dams.

Kriss Krissy‘s ‘s Buckle Buckle Pro Propert erty y p y p y

Greenfield 2300 Hectare Gold property within 35Km of the Nugget Pond Processing Plant. The property has anomalous Gold samples including 10.51 g/t over 1.7m within 10m of surface

Minority Minority 17 17% Equity Equity Stake Stake in in Maritime Maritime Resources Resources Minority Minority 17 17% Equity Equity Stake Stake in in Maritime Maritime Resources Resources

Maritime owns the former producing Hammerdown Gold Mine situated within 150Km’s of the Nugget Pond Mill.

5

www.ramblermines.com www.ramblermines.com

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SLIDE 6

LOCATION

 Roads  Fresh Water  Hydro

Krissy Buckle Hammerdown Mine & Orion Deposit

 Community  Airports  Port  Mill  Mill  Geo-Political  Socio-Economic  Tax Regime

6

www.ramblermines.com www.ramblermines.com

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SLIDE 7

MING COPPER GOLD MINE

OPERATIONAL REVIEW OPERATIONAL REVIEW

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www.ramblermines.com www.ramblermines.com

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SLIDE 8

HEALTH & SAFETY

13.7 11 6 15 Fatalities Lost Times Medical Aids Total Injury Freq. Rate 11.6 10 ber

De-Watering Production

4 5 4 6 4.3 6.4 2.3 5 Numb

Construction

1 4 4 3 2005 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

8

www.ramblermines.com www.ramblermines.com

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SLIDE 9

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 Ounces unces 6,263 8,871 4,000 6,000 8,000 1000 1500 Total Gold Gold Ou 428 3,573

  • 2,000

4,000 500 D '11 J '12 F b'12 M '12 A '12 M '12 Dec'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 www.ramblermines.com

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SLIDE 10

GOLD PRODUCTION – 1806 ZONE

Bars 037 – 044 @ 40% Purity = $3.2M

10

www.ramblermines.com www.ramblermines.com

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SLIDE 11

COPPER PRODUCTION

1 525 1 500 1 500 4.62 4.50 4.55 4.50 5.00 1,600 1,800 Copper lbs Forecast Cu lbs Copper Grade % 1,030 978 965 888 1,525 1,400 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 Copper Gr . Cu Recove 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 www.ramblermines.com

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SLIDE 12

GOLD IN CONCENTRATE

90 100 600 Gold Oz's Forecast Gold Oz's Copper Tailings Re-Processing Gold Recovery 108 60 70 80 90 400 500

  • very %

unces 300 365 341 255 256 305 505 530 550 550 107 108 20 30 40 50 100 200 300 Gold Reco Gold Ou 124 176 10

  • 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

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  • Re-Processing of Tailings Elevated Recoveries to +80%. Concept Works.

www.ramblermines.com www.ramblermines.com

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SLIDE 13

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 /t Silver 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

13

www.ramblermines.com www.ramblermines.com

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SLIDE 14

GOODYEAR’S COVE PORT

14

www.ramblermines.com www.ramblermines.com

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SLIDE 15

GOODYEAR’S COVE WAREHOUSE

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www.ramblermines.com www.ramblermines.com

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SLIDE 16

FINANCIALS FINANCIALS

16

www.ramblermines.com www.ramblermines.com

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SLIDE 17

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 www.ramblermines.com

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SLIDE 18

2Q BALANCE SHEET

CAD $’s (000’s) 2Q (Nov’12 – Jan’13) Property, Plant & Equipment 30,341 Mineral Properties 47,987 p , Intangible Assets 17,318 Assets for Sale 1,220 Total Non-Current Assets 96,866 Total Non Current Assets 96,866 Cash 7,325 Restricted Cash 3,268 Inventory & Recoverables 4 508 Inventory & Recoverables 4,508 Total Current Assets 15,101 Total Assets 111,967 Total Equity 69 233  Fi

i L $8 4M

Total Equity 69,233 Non-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

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Total Equity & Liabilities 111,967 * Sprott Debt Currently $6.5M (21/5/13)

www.ramblermines.com www.ramblermines.com

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SLIDE 19

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 MAE Acquisition 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

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www.ramblermines.com www.ramblermines.com

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SLIDE 20

SELECT OPPORTUNITI SELECT OPPORTUNITIES ES

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SLIDE 21

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 Profitability

p , 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

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Revenues and Profitability Further Increased www.ramblermines.com www.ramblermines.com

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SLIDE 22

NUGGET POND MILL

Existing Gold H dromet New Copper Flotation Mill @ 1,000 mtpd Hydromet @ 630 mtpd

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www.ramblermines.com www.ramblermines.com

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SLIDE 23

MING COPPER GOLD MINE - LFZ

Shaft PEA Results: +20 Year Mine Life NPV5 = $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 Zone 18.3 18.3 M Mt t @ @ 1.43% 1.43% Cu & Cu & 0.09 0.09 g/t Au g/t Au Contained Metal Contained Metal

, % , g/ g/ g ( p )

  • Systematic Sampling Required to Make NI43-101 Compliant
  • Backfilling allows Pillar Recovery

Hi t i l T ili

261,258 261,258 tonnes copper tonnes copper 52,015 52,015 ounces gold

  • unces gold

794,102 794,102 ounces silver

  • unces 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 www.ramblermines.com

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SLIDE 24

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

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www.ramblermines.com www.ramblermines.com

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SLIDE 25

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

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www.ramblermines.com www.ramblermines.com

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SLIDE 26

LOOKING FORWARD

  • Continue to Pay Down Sprott Debt Facility Fully Re-Paid by Calendar Yearend

Continue 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 Acquisitions

est gate u t e cqu s t o s

  • Market Conditions Favour Producers with Cashflow

26

www.ramblermines.com www.ramblermines.com

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SLIDE 27

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

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www.ramblermines.com www.ramblermines.com

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SLIDE 28

R b R bl M M t l & & Mi i P PLC Rambler Metals & Rambler Metals & Mining Canada Mining Canada Ltd Ltd Ram ambl bler er M Metals & & Mi Mining ng PLC PLC

Salatin House, 19 Cedar Road Sutton, Surrey, SM2 5DA Tel: Tel: +44(0)1483 419942

Rambler Metals & Rambler Metals & Mining Canada Mining Canada Ltd Ltd

P.O. Box 610, Baie Verte, NL, A0K 1B0 Route # 418, Ming's Bight Road, NL, A0K 3S0 ( ) Fax: Fax: +44(0)1483 429255 E-Mail: E-Mail: investors@ramblermines.com , , Tel: Tel: 709-800-1929 Fax: Fax: 709-800-1921

Our Company Vision is to become “The Leading Mine Operator and Resource Developer in Atlantic Canada.”

www.ramblermines.com www.ramblermines.com