Red Rock Resources - Impact on COVID-19 Pandemic
("Red Rock" or the "Company")
Update on Impact of COVID-19 Pandemic
The pandemic has had impacts in all the key locations where the Company operates:
Over 30 cases have been recorded, with one death, with initial cases linked with arrivals from
Planning for a new stage of exploration on the Luanshimba license, 80% owned, which is prospective for copper and gold, continues.
Meanwhile the last confirmed Ebola patient in the country has been released from hospital. A summary of the lessons learnt from this outbreak is on the
The country has 554 cases, with no deaths, all but a dozen or so imported by travellers, which is the highest number in sub-Saharan Africa. With fears of a rapid increase in infections as the weather cools, and a large immunocompromised population, the Government has taken action, imposing a 21 day lockdown from midnight on 26 March. Most shops and businesses are to close, and all but key workers confined to their homes. Mines have been closed for 21 days. Most international flights have been stopped. Schools have been closed.
It was initially unclear whether this applied to open pit mines, but following clarification it appears that only coal mines supplying power stations are exempted and the Tshipi manganese mine (49.9% owned by Jupiter Mines Ltd (ASX:JMS) in which the Company is an investor) has closed its open pit mine for the 21 day period.
With 25 cases, and no deaths,
Offices including Government offices remain open, and the Company has continued to maintain its camp and deal with business in the normal way. Further short term Government measures are anticipated.
Red Rock Chairman
We are not currently able to visit any of our operations due to travel restrictions. We do not anticipate that this will inhibit our activities in the near-term.
The countries in which we operate have taken actions which should reduce the rate of transmission and keep numbers at a level where tracing, isolation, and testing can be brought to bear to eliminate infection, as in
We have some confidence in the capability of the Governments in the African countries in which we work to handle epidemics of this kind. There are also fewer means of internal travel, and recent experience of handling epidemics. In this pandemic, countries are also learning from each other.
We note the recovery of economic activity and demand in
The effect of the pandemic on economic activity in
The monetary expansion that is under way in many countries has the potential to create several benefits. One of these, that we already see, is in demand for gold, the price of which has already risen. Another, after a short interval, may be to market liquidity.
From this point forward, therefore, the Company sees upside potential rather than a potential for more downside surprises".
The Company will issue its interim results before the end of March.
For further information, please contact:
Scott Kaintz 0207 747 9990 Director
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD
Tim Sohal 0203 700 2500 Broker
This information is provided by RNS, the news service of the
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Market Cap: £2.13 m
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