Red Rock Resources PLC booked a loss of £1.3mln in the six months to 31 December 2022 and closed out the calendar year with £242,000 in cash.
“The figures are not materially changed from the previous year, other than an increase in current liabilities as the company has sought to avoid dilution while waiting for what were expected to be material positive developments in the DRC and in the listing of Elephant Oil,” said Red Rock chairman Andrew Bell in the results statement. “Both these developments have been slower than expected to eventualise.”
He also highlighted that ongoing legal action in the Democratic Republic of Congo (DRC) had been taking up significant company time.
“In December 2019 our 50.1% owned joint venture assets in the Democratic Republic of Congo were signed away behind our backs for US$20mln to an initial buyer and then immediately sold on for several hundred million dollars to a further party, although these transactions were carefully hidden from us at the time,” said Bell.
“We will vigorously pursue payment of sums due in the DRC, but as a result of the undertakings given by the buyer, a parastatal company, in the course of the arbitration process, our expectation is that payments will be made promptly. This would be so significant an event for our cash flow outlook that anticipation of it has influenced our actions to date, and so were there likely to be any delay, we would need to accelerate alternative measures, whether by fund-raising or sale of non-core assets, to strengthen our balance sheet," he added.
All told, Bell said, Red Rock has established its rights as 50.1% owners of the DRC joint venture property under Congolese law.
Separately, the company has also been working on lithium opportunities in Zimbabwe, Africa's largest lithium producer.
“Our first project at Tin Hill has seen the final stage of the permitting process begin with the submission of a full environment impact assessment, and we expect to be in production within weeks,” said Bell. “Further projects are following the same process, and our object is to have production from more than one location and so to increase both production volume and the longevity of our operations.”
The company also has assets in Australia, Kenya, Columbia and West Africa, and continues to expect Elephant Oil to list this year.