Red Rock Resources PLC (AIM:RRR) will maintain its entrepreneurial spirit and will have “a strong focus on cash generation and creating opportunities for value crystallization”, said chairman Andrew Bell as the company reported its half-year results.
Cash and equivalents stood at £182,000 at the end of December, following geological work and the costs of litigation incurred in Congo.
Bell said the coming period “will have great economic and political challenges, but we are confident, having considered the range of possible outcomes, that with prudence and skill we will turn this into a period of remarkable opportunity.
“We will, like other explorers, operate with limited financial resources but are confident in our ability to keep the business adequately funded.”
The Congo legal proceedings were to enforce the company’s rights in one of its copper-cobalt joint ventures, and resulted in awards of US$4.5m plus costs, which have not yet been enforced, as well as claims to a substantial part of an unpaid consideration of US$15mln that are pending legal clarification as well as a potential interest in the on-sale of the assets.
“However, while the directors are confident of a positive outcome for the company, there remains some uncertainty over realisation and the timing,” said Bell.
The planned US initial public offer of Elephant Oil Corporation, where Red Rock has just under 400,000 shares, had been expected but news is still awaited, with Bell stating an IPO “would be significant value for us”.
Elsewhere, the company is planning the next steps following recent drilling, including on its Australian gold project, held via its New Ballarat Gold Corporation joint venture.
"Initial results confirmed the intersection of two gold bearing structures, with full analysis of the drilling results and samples currently taking place and to subsequently be reported in more detail," the company said.
Early sample results from its Zimbabwe lithium project have been "encouraging" with the group expecting to announce more comprehensive analysis and results "in the near future".
At the Luanshimba copper/cobalt project in DRC, additional drilling is planned to take place "to further delineate the structures and to ultimately pursue a formal resource".