Red Rock Resources PLC (LON:RRR) has reported a pre-tax profit for the full year as it set its sights on increased gold incomes in the new financial year.
The natural resources development firm reported a pre-tax profit from continuing operations of £78,120 compared to a £1.1mln loss the year before, while it ended the period with cash and cash equivalents totalling around £2.3mln, up from £909,094 last year.
READ: Red Rock Resources proceeding to completion for cobalt and copper assets joint venture in the Democratic Republic of Congo
Into the current financial year, Red Rock said it had settled a judicial review case in Kenya to protect its interest in the Migori gold asset, which contains a gold resource of around 1.2mln ounces.
The firm added that it had increased its beneficial interest in the Kenya licenses to 100%, and following its restoration following the court case it was expecting to form co-operation with other parties in order to help drive the asset toward production.
Red Rock also said on Thursday that it was proceeding with the completion of a joint venture for the development of cobalt and copper assets in the Democratic Republic of Congo (DRC).
Under the arrangement, the company will acquire 50.1% on completion of the joint venture with Bring Minerals SAU, its counterparty, and local partner Vumilia Pendeza SA.
Looking ahead, the group said it was expecting a continued strong performance from Jupiter Mines Ltd (ASX:JMS), in which it holds a 0.95% stake, while also “increasing gold income stream from royalties” to supplement the Jupiter earnings.
Andrew Bell, chairman and chief executive of Red Rock, added that the company would “renew and refresh” its marketing, public relations, and social media as part of a process of shareholder engagement.
Bell also said that as the firm’s revenues and profitability increased it would look toward obtaining a “stable revenue that will permit either share buybacks or a sustainable dividend”.
In late-afternoon trading Friday, Red Rock shares were steady around 0.62p.