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viewRed Rock Resources PLC

Red Rock Resources - Half-year Report

RNS Number : 1147I
Red Rock Resources plc
31 March 2020
 

 

 

 

  31 March 2020

 

 

Red Rock Resources plc

Unaudited half-yearly results for the six months ended

31 December 2019

 

Red Rock Resources plc ("Red Rock" or "the Company"), the natural resources investment, exploration, and development company with interests in manganese, gold, copper and cobalt, and other materials, announces its half-yearly results for the six months ended 31 December 2019.

 

Chairman's Statement

 

It is three months since the Company reported its Final Results for the year to 30 June 2019, and normally we might be reporting that nothing had changed greatly since then. In some respects this is true, in that no major initiatives have been undertaken by, or developments occurred within, Red Rock in this short period. We have continued our work towards restoration of the Kenyan licenses, and been preparing a programme for renewed exploration at our Luanshimba copper/cobalt license in the Democratic Republic of Congo, as well as at our other licenses in the Congo, but these tasks for the early part of 2020 were prefigured in the statement in the Annual Report. Yet everything has changed.

 

The COVID-19 coronavirus pandemic declared on 11 March 2020 has shaken up the kaleidoscope so effectively as to change every market and every part of the world economy: today they all look different. The impact of these changes has been almost universally negative in the short term, with the strength in the gold market a rare exception.

 

The Company has announced in a recent update the response to COVID-19 in the principal countries where it operates, and the effects on Red Rock, which are limited so far. The Company will continue to review, and if necessary announce, further Covid-related developments.

 

Red Rock's current assumption is that although there are short term effects on the world economy, human ingenuity will find solutions and the successes of Taiwan, South Korea, Japan, Singapore, and even China in controlling the outbreaks while limiting the damage to economic activity and people's livelihoods will provide some lessons that can be adapted to apply in the Western economies. Nearer home, the templates of Iceland, Norway and Germany may already offer directly applicable lessons in testing, tracing, and reducing mortality. 

 

Should this be correct, the bounce back will be rapid, and the extra liquidity being pumped into economies may assist this. Red Rock believes its positioning in gold and battery metals will be well-adapted for this environment. The holding in Jupiter Mines Ltd, a very low-cost major manganese producer, will in the view of the Company continue to provide support for its asset value as well as providing ongoing cash flow.

 

Red Rock will however prepare itself for a less benign environment by ensuring that it can turn off a significant proportion of its costs at short notice.

 

In the six-month period ending 31 December 2019 the profit before tax from continuing operations was £337,000 compared with a loss of £283,000 in the comparable period of the previous year. Net finance income was at similar levels to that in the comparable period of the previous financial year, at £524,000, but this was not offset as in the previous period by impairments and project development costs. Diluted earnings per share were 0.047p for the half year.

 

Total comprehensive loss for the period was £227,000 compared with a total comprehensive loss of £2,085,000 for the previous year, the loss arising as a result of revaluation of available for sale investments.

 

Payroll and other administrative expenses were held almost unchanged from the previous year's period.

 

In the Annual Report in December 2019 it was noted that the directors had, despite passing two key milestones, taken the conservative decision to delay writing back any part of the £5,280,000 impairment which had been taken in relation to the Kenyan assets in the 30 June 2015 accounts, while awaiting resolution of the then pending court case. Although further progress towards a conclusion has been made in the first quarter of 2020, the directors have once again deferred any write back of previous impairments, feeling that to do this at a moment when COVID-19 has created such global uncertainty might be inappropriate.

 

The Company's value continues to be underwritten by its 17.02m share holding in Jupiter Mines Ltd (ASX:JMS). On 24 March 2020 Jupiter announced the results for the fourth quarter to 29 February 2020. Tshipi had fulfilled its targets for the 2020 financial year, exporting 3.4 million tons of Manganese ore, and had announced a ZAR265m dividend. Jupiter held cash of AUD84m at the end of the quarter, and had begun a feasibility study into mine expansion. Red Rock notes that the manganese price for 37% Mn FOB Port Elizabeth has increased from $2.70 per DMTU in late 2019 to $3.34 per DMTU. This must reflect a degree of restocking as China, post the Chinese New Year and post the high point of the coronavirus epidemic, starts to resume large scale industrial activity and steel production.  

 

The Company thanks shareholders for their resilience and support at this extraordinary time, and wishes them good health and a safe passage through the current turmoil. It will in the coming days keep shareholders informed of any significant developments it sees occurring, either in the markets or in its own affairs.     

 

 

Andrew Bell

Chairman

31 March 2020

 

 

 

 

 

 
 

Consolidated statement of financial position

as at 31 December 2019

 

 

Notes

31 December 2019

 

31 December 2018

 

30 June 2019

 

 

 

Unaudited,

 £'000

 

Unaudited,

£'000

 

Audited,

 £'000

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Investments in associates and joint ventures

 

1,584

 

1,490

 

1,584

 

Financial instruments

8

3,103

 

3,127

 

4,210

 

Exploration assets

 

278

 

62

 

235

 

Non-current receivables

 

5,473

 

5,150

 

5,234

 

Total non-current assets

 

10,438

 

9,829

 

11,263

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

139

 

27

 

64

 

Financial assets - investment in derivatives

 

56

 

60

 

60

 

Loans and other receivables

 

795

 

2,438

 

975

 

Total current assets

 

990

 

2,525

 

1,099

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

11,428

 

12,354

 

12,362

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

Equity attributable to owners of the parent

 

 

 

 

 

 

 

Called up share capital

9

2,781

 

2,774

 

2,781

 

Share premium account

 

26,853

 

26,499

 

26,853

 

Other reserves

 

1,623

 

1,591

 

2,563

 

Retained earnings

 

(22,169)

 

(21,223)

 

(22,668)

 

Total equity attributable to owners of the parent

 

9,088

 

9,641

 

9,529

 

 

 

 

 

 

 

 

 

Non-controlling interest

 

(22)

 

(20)

 

(21)

 

Total equity

 

9,066

 

9,621

 

9,508

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

1,283

 

1,681

 

1,733

 

Short term borrowings

10

1,079

 

1,052

 

1,121

 

Total current liabilities

 

2,362

 

2,733

 

2,854

 

 

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

11,428

 

12,354

 

12,362

 

 

 

 

 

 

 

 

 

 

The accompanying notes form an integral part of these financial statements.

 

 

Consolidated statement of income

for the period ended 31 December 2019

 

 

Notes

6 months to 31 December 2019

 

6 months to 31 December 2018

 

 

Unaudited, £'000

 

Unaudited,

£'000

 

 

 

 

 

 

 

 

 

 

Administrative expenses

4

(282)

 

(269)

Project development costs

5

-

 

(303)

Other project expenses

5

(126)

 

(95)

Exploration expenses

 

(6)

 

(3)

Other income

 

246

 

-

Impairment of loans and receivables

 

-

 

(257)

Share of losses of associates and joint ventures

 

-

 

-

Foreign exchange gain/(loss)

 

(19)

 

106

Finance income/(expenses), net

6

524

 

538

Profit/(loss) for the period

 

337

 

(283)

 

 

 

 

 

Tax credit

 

-

 

-

 

 

 

 

 

Profit/(loss) for the period

7

337

 

(283)

 

 

 

 

 

Profit/(loss) for the period attributable to:

 

 

 

 

Equity holders of the parent

 

338

 

(282)

Non-controlling interest

 

(1)

 

(1)

 

 

337

 

(283)

 

 

 

 

 

Profit/(loss) per share

 

 

 

 

Profit/(loss) per share - basic, pence

3

0.050

 

(0.053)

Profit/(loss) per share - diluted, pence

3

0.047

 

(0.053)

           

 

The accompanying notes form an integral part of these financial statements.

 

 

 

Consolidated statement of comprehensive income

for the period ended 31 December 2019

 

 

 

6 months to 31 December 2019

 

6 months to 31 December 2018

 

 

Unaudited, £'000

 

Unaudited, £'000

 

 

 

 

 

 

 

 

 

 

Profit/(loss) for the period

 

337

 

(283)

Revaluation of FVTOCI investments

 

(713)

 

(1,825)

(Loss) on sale of FVTOCI investments taken directly to reserves

 

161

 

-

Unrealised foreign currency gain arising upon retranslation of foreign operations

 

(12)

 

23

Total comprehensive (loss)/profit for the period

 

(227)

 

(2,085)

 

 

 

 

 

 

 

 

 

 

Total comprehensive (loss)/income for the period attributable to:

 

 

 

 

Equity holders of the parent

 

(226)

 

    (2,084)

Non-controlling interest

 

(1)

 

                         (1)

 

 

(227)

 

                  (2,085)

 

 

 

 

 

 

The accompanying notes form an integral part of these financial statements.

 

 

 

 

Consolidated statement of changes in equity

for the period ended 31 December 2019

 

The movements in equity during the period were as follows:

 

Share capital

Share premium account

Retained earnings

Other reserves

Total attributable to owners of the Parent

Non- controlling interest

Total equity

Unaudited

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 30 June 2019 (audited)

2,781

26,853

(22,668)

2,563

9,529

(21)

9,508

Changes in equity for the six-month period ending 31 December 2019

 

 

 

 

 

 

 

Profit for the period

-

-

338

-

338

(1)

337

Other comprehensive income for the period

-

-

161

(940)

(779)

-

(779)

Total comprehensive income/(loss) for the period

-

-

499

(940)

(441)

(1)

(442)

As at 31 December 2019 (unaudited)

2,781

26,853

(22,169)

1,623

9,088

(22)

9,066

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 30 June 2018 (audited)

2,767

26,016

(20,941)

3,392

11,234

(19)

11,215

Changes in equity for the six-month period ending 31 December 2018

 

 

 

 

 

 

 

Loss for the period

-

-

(282)

-

(282)

(1)

(283)

Other comprehensive income for the period

 

-

 

-

 

-

 

(1,801)

 

(1,801)

 

-

 

(1,801)

Total comprehensive income/(loss) for the period

 

-

                -

 

(282)

               

(1,801)

 

(2,083)

                (1)

 

(2,084)

Transactions with owners

 

 

 

 

 

 

 

Issue of shares

7

483

             -

             -

490

                -

490

Total Transactions with owners

7

483

-

-

490

-

490

As at 31 December 2018 (unaudited)

2,774

26,499

(21,223)

1,591

9,641

(20)

9,621

 

 

 

 

FVTOCI financial assets reserve

Foreign currency translation reserve

Share-based payment reserve

Total other reserves

Unaudited

£'000

£'000

£'000

£'000

 

 

 

 

 

As at 30 June 2019 (audited)

2,256

143

164

2,563

Changes in equity for six months ended 31 December 2018

 

 

 

 

Decrease in FVTOCI reserve in relation to disposals

(215)

-

-

(215)

Change in reserves related to FVTOCI investments revaluations

(713)

-

-

(713)

Unrealised foreign currency loss on translation of foreign operations

-

(12)

-

(12)

Total comprehensive income for the period

(928)

(12)

-

(940)

As at 31 December 2019 (unaudited)

1,328

131

164

1,623

 

 

 

 

 

As at 30 June 2018 (audited)

3,108

120

164

3,392

Changes in equity for six months ended 31 December 2018

 

 

 

 

Change in reserves related to FVTOCI investments revaluations

(1,825)

-

-

(1,825)

Unrealised foreign currency loss on translation of foreign operations

-

24

-

24

Total comprehensive income for the period

(1,825)

24

-

(1,801)

As at 31 December 2018 (unaudited)

1,283

144

164

1,591

 

 

 

 

Consolidated statement of cash flows for the period ended 31 December 2019

 

 

6 months to 31 December 2019

 

6 months to 31 December 2018

 

 

Unaudited, £'000

 

Unaudited, £'000

Cash flows from operating activities

 

 

 

 

Profit/(loss) before tax

 

337

 

(283)

(Increase)/decrease in receivables

 

(19)

 

(232)

(Decrease)/increase in payables

 

(8)

 

118

Share of losses in associates and joint ventures

 

-

 

-

Finance income, net

 

(524)

 

(538)

Currency adjustments

 

19

 

(106)

Other income

 

(246)

 

-

Impairment of loans and receivables

 

-

 

257

Net cash inflow/(outflow) from operations

 

(441)

 

(784)

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Dividends received

 

357

 

499

Loans granted during the period

 

-

 

(1,550)

Proceeds from sale of investments

 

306

 

-

Payments for capitalised exploration costs

 

(43)

 

(61)

Payments to acquire FVTOCI investments

 

-

 

(247)

Net cash (outflow)/inflow from investing activities

 

620

 

(1,359)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Proceeds from issue of shares

 

-

 

-

Interest paid

 

(26)

 

(84)

Proceeds from new borrowings

 

-

 

325

Repayments of borrowings

 

(83)

 

(290)

Net cash (outflow)/inflow from financing activities

 

(109)

 

(49)

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

 

70

 

(2,192)

 

 

 

 

 

Cash and cash equivalents at the beginning of period

 

64

 

2,266

Exchange losses on cash and cash equivalents

 

5

 

(47)

Cash and cash equivalents at end of period

 

139

 

27

 

 

Half-yearly report notes

for the period ended 31 December 2019

 

1

Company and group

 

 

As at 31 December 2019, 30 June 2019 and 31 December 2018 the Company had one or more operating subsidiaries and has therefore prepared full and interim consolidated financial statements respectively.

 

 

The Company will report again for the year ending 30 June 2020.

 

The financial information contained in this half yearly report does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the year ended 30 June 2019 has been extracted from the statutory accounts for the Group for that year. Statutory accounts for the year ended 30 June 2019, upon which the auditors gave an unqualified audit report which did not contain a statement under Section 498(2) or (3) of the Companies Act 2006, have been filed with the Registrar of Companies.

 

2

Accounting Polices

 

 

Basis of preparation

 

 

The consolidated interim financial information has been prepared in accordance with IAS 34 'Interim Financial Reporting.'  The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 June 2018, which have been prepared in accordance with IFRS.

 

 

 

During the period the following new standards were adopted. The adoption of these standards has not had a material impact on the financial information of the Group in future periods.

 

 

 

IFRS 16 is effective for periods beginning on or after 1 January 2019. The Group has elected to apply paragraph C5(b) and adopt IFRS 16 retrospectively with the cumulative effect of initially applying IFRS 16 recognised at the date of initial application (1 July 2019). Consequently, the comparative period has not been restated. Under IFRS 16 lessees may elect not to recognise assets and liabilities for leases with a lease term of 12 months or less. The Company's offices premises are currently under a rolling monthly lease and are short-term leases, so the Company took IFRS 16 scope exemption and chose to recognise the lease payments in profit or loss on a straight-line basis over the lease term.

 

 

IFRIC 23 is effective for periods beginning on or after 1 January 2019. The Group elected to adopt IFRIC 23 retrospectively with the cumulative effect of initially applying the Interpretation recognised at the date of initial application (1 July 2019). Consequently, the comparative period has not been restated.

               

 

 

Half-yearly report notes

for the period ended 31 December 2019, continued

 

3

Earnings per share

 

 

The following reflects the loss and number of shares data used in the basic and diluted loss per share computations:

 

 

6 months to

 31 December 2019

 

6 months to

 31 December 2018

 

 

Unaudited

 

Unaudited

 

 

£'000

 

£'000

 

 

 

 

 

 

Profit/(loss) attributable to equity holders of the parent company, Thousand pounds Sterling

338

 

(282)

 

Adjusted for interest accrued on convertible loan notes, Thousand pounds Sterling

34

 

-

 

Adjusted profit/(loss) attributable to equity holders of the parent company, Thousand pounds Sterling

372

 

(282)

 

 

 

 

 

 

Weighted average number of Ordinary shares of £0.0001 in issue, used for basic EPS

676,049,662

 

535,699,971

 

 

Effect of all dilutive potential ordinary shares from potential ordinary shares that would have to be issued, if all loan notes convertible at the discretion of the noteholder converted at the beginning of the period

 

 

 

115,980,823

 

 

 

 

-

 

 

 

 

 

 

Weighted average number of Ordinary shares of £0.0001 in issue, including potential ordinary shares, used for diluted EPS

792,030,485

 

535,699,971

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) per share - basic, pence

0.050

 

(0.053)

 

 

 

 

 

 

Profit/(loss) per share - diluted, pence

0.047

 

(0.053)

 

 

 

 

 

                 
 

 

 

Half-yearly report notes

for the period ended 31 December 2019, continued

 

3

Earnings per share, continued

 

At 31 December 2019 and 31 December 2018, the effect of the following the instruments is anti-dilutive, therefore they were not included into the diluted earnings per share calculation.

 

 

6 months to

 31 December 2019

 

6 months to

 31 December 2018

 

 

Unaudited

£'000

 

Unaudited

£'000

 

 

 

 

 

 

Share options granted to employees - not vested and/or out of the money

48,320,000

 

41,660,000

 

Number of warrants given to shareholders as a part of placing equity instruments - out of the money

 

101,740,195

 

 

118,489,582

 

 

Total number of contingently issuable shares that could potentially dilute basic earnings per share in future

 

150,060,195

 

 

160,149,582

 

 

 

 

 

 

Number of warrants - vested and in the money at year end but not included into diluted EPS calculation due to their effect being anti-dilutive

-

 

-

 

Number of potential ordinary shares that would have to be issued if all loan notes convertible at the discretion of the noteholder converted

-

 

131,538,908

 

Number of share options granted to employees - vested and in the money at year end but not included into diluted EPS calculation due to their effect being anti-dilutive

 

-

 

6,660,000

 

Total number of contingently issuable shares that could potentially dilute basic earnings per share in future and anti-dilutive potential ordinary shares that were not included into the fully diluted EPS calculation

 

 

150,060,195

 

 

298,348,490

 

 

 

 

 

 

There were no ordinary share transactions after 31 December 2019, that that could have changed the EPS calculations significantly if those transactions had occurred before the end of the reporting period.

 

 

 

Half-yearly report notes

for the period ended 31 December 2019, continued

 

4

Administrative expenses

 

 

 

6 months to

 31 December 2019

 

6 months to

 31 December 2018

 

 

 

Unaudited

£'000

 

Unaudited

£'000

 

Staff Costs:

 

 

 

 

 

Payroll

 

114

 

110

 

Pension

 

9

 

8

 

Consultants

 

8

 

8

 

HMRC / PAYE

 

13

 

11

 

Professional Services:

 

 

 

 

 

Accounting

 

21

 

21

 

Legal

 

1

 

11

 

Marketing

 

15

 

(1)

 

Other

 

-

 

9

 

Regulatory Compliance

 

38

 

33

 

Travel

 

16

 

16

 

Office and Admin:

 

 

 

 

 

General

 

16

 

9

 

IT related costs

 

2

 

2

 

Rent

 

26

 

30

 

Insurance

 

3

 

2

 

Total administrative expenses

 

282

 

269

 

 

                     

5

Project development and Other project expenses

 

Project development expenses include costs incurred during the assessment and due diligence phases of a project, when material uncertainties exist regarding whether the project meets the Company's investment and development criteria and whether as a result the project will be advanced further.  Other Project Expenses include costs associated with current and previous projects and include remediation and administration expenses. 

 

 

6 months to

 31 December 2019

 

6 months to

 31 December 2018

 

 

 

Unaudited

£'000

 

Unaudited

£'000

 

Project development expenses

VUP (Congo)

 

-

 

 

256

 

Galaxy (Congo)

 

-

 

46

 

Total project development expenses

 

-

 

302

 

 

 

 

 

 

 

Other project expenses

 

 

 

 

 

Mid Migori Mines (Kenya)

 

26

 

12

 

Greenland

 

97

 

82

 

Others

 

1

 

1

 

Total other project expenses

 

126

 

95

 

 

 

 

 

 

Half-yearly report notes

for the period ended 31 December 2019, continued

 

6

Finance income/(expenses), net

 

 

 

6 months to

 31 December 2019

 

6 months to

 31 December 2018

 

 

Unaudited

£'000

 

Unaudited

£'000

Interest income

 

238

 

131

Dividend income

 

357

 

499

Interest expense

 

(71)

 

(92)

Total Finance income/(expenses), net

 

524

 

538

 

 

7

Segmental analysis

 

 

 

Jupiter Mines

Limited

 

Kenyan exploration

 

DRC

exploration

Corporate and unallocated

 

 

Total

 

For the six-month period to 31 December 2019

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

Total segment external revenue

-

-

-

-

-

 

Result

 

 

 

 

 

 

Segment results

357

(34)

-

(153)

170

 

Loss before tax and finance costs

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

238

 

Interest expense

 

 

 

 

(71)

 

Loss before tax

 

 

 

 

337

 

Tax

 

 

 

 

-

 

Loss for the period

 

 

 

 

337

 

 

 

Jupiter Mines

Limited

 

Kenyan exploration

 

DRC

exploration

Corporate and unallocated

 

 

Total

 

For the six-month period to 31 December 2018

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

Total segment external revenue

-

-

-

-

-

 

Result

 

 

 

 

 

 

Segment results

499

(17)

   (306)

(497)

(321)

 

Loss before tax and finance costs

 

 

 

 

(321)

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

131

 

Interest expense

 

 

 

 

(92)

 

Loss before tax

 

 

 

 

(283)

 

Tax

 

 

 

 

-

 

Loss for the period

 

 

 

 

(283)

 

 

 

A measure of total assets and liabilities for each segment is not readily available and so this information has not been presented.

 

 

Half-yearly report notes

for the period ended 31 December 2019, continued

 

 

8

Financial instruments - Fair value through other comprehensive income

 

 

 

 

31 December 2019

Unaudited

£'000

31 December

2018

Unaudited

£'000

30 June

2019

Audited

£'000

 

At the beginning of the period

4,210

4,705

4,705

 

Additions

146

247

392

 

Disposals

(540)

-

(25)

 

Change in fair value

(713)

(1,825)

(862)

 

At the end of the period

3,103

3,127

4,210

 

 

9

Share Capital of the company

 

 

Number

 

Nominal, £'000

 

 

 

 

 

 

Deferred shares of £0.0009 each

2,371,116,172

 

2,134

 

A deferred shares of £0.000096 each

6,033,861,125

 

579

 

Ordinary shares of £0.0001 each

676,049,662

 

68

 

As at 30 June 2019 and at 31 December 2019

 

 

2,781

 

 

 

 

 

 

 

10

Short-term borrowings

 

 

31 December 2019

Unaudited

£'000

31 December

2018

Unaudited

£'000

30 June

2019

Audited

£'000

 

 

Loan from institutional investors

46

-

122

 

 

Convertible loan notes

1,033

1,052

999

 

 

At the end of the period

1,079

1,052

1,121

 

             

 

 

11

Capital Management

 

Management controls the capital of the Group in order to control risks, provide the shareholders with adequate returns and ensure that the Group can fund its operations and continue as a going concern.

The Group's debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.

There are no externally imposed capital requirements.

Management effectively manages the Group's capital by assessing the Group's financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.

There have been no changes in the strategy adopted by management to control the capital of the Group since the prior period.

 

 

12

Subsequent events

 

Half-yearly report notes

for the period ended 31 December 2019, continued

Jupiter Mines

 

On 7 January 2020 the Company announced that Jupiter Mines Limited (ASX:JMS), an Australian public company in which Red Rock holds 17,024,914 shares, and which owns 49.9% of the Tshipi Borwa manganese mine in South Africa, has announced that it has completed a concept study regarding the expansion of the Tshipi Borwa mine, and that  subsequent feasibility study will shortly commence. The feasibility study will be based on a production profile of 4.5m tonnes, a 50% increase on the current 3m tonne production level.  Total capital expenditure required for this scenario was estimated to be 1.025bn Rand.  Subject to the completion of this feasibility study and commercial process, expected to be approximately 1 year, Tshipi would expect to reach steady state exports of 4.5m tonnes in 3 years, which an increase is manganese ore exports in year 2 and year 3, via a stepped approach. 

 

DRC Exploration

 

On 25 February 2020 the Company announced an update on its exploration license PR13513 in the Copperbelt in the south of the Democratic Republic of Congo ("DRC").  The Company announced that it had identified two open ended areas strongly anomalous for copper and cobalt.  Based on these results the Company's consultants have recommended a second phase of exploration, that will consist of pitting on north-south lines spaced at 100m intervals with pits 40m apart.  Follow up trenching will be undertaken between pits where mineralisation is encountered or further lithostratigraphical information can be obtained.  Geophysics will be undertaken over the north-west sector to be followed by pitting once geophysical results have been interpreted.      

 

On 10 March 2020 the Company announced that following the announcement of 25 February 2020 planning discussions had been held with the Company's technical advisors to create a cost-effective exploration programme.  Additionally, the Company announced that in relation to the Company's other concessions in the DRC, the final $US100,000 of payments to the vendors have been made, with $50,000 of cash paid in December 2018 and through the subsequent issuance of 6,000,000 new ordinary shares of the Company at a price of £0.006 per share.  These new shares issued to the vendors are subject to a hold period ending 3 June 2020.   

 

 

For further information, please contact:

 

Andrew Bell 0207 747 9990                                                                  Chairman Red Rock Resources Plc

Scott Kaintz 0207 747 9990                                                                  Director Red Rock Resources Plc

Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396                NOMAD Beaumont Cornish Limited

Tim Sohal 0203 700 2500                                                                     Broker Pello Capital Limited

 

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
IR FLFSEVVIIVII

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