Red Rock Resources plc said it continued to rationalise parts of its portfolio to generate cash as the company recorded an increase in six-month losses.
PRIORITIES
Chairman Andrew Bell said that the company would focus on early gold production and other “immediate cash flow operations”.
Medium or long-term projects will be prioritised for short- term exploitation, while non-core assets will progress in partnerships or be sold.
The company is rethinking its strategies for cash returns from its Zimbabwe lithium interests, gold assets in West Africa and Australia where it has conditionally acquired its partner’s 49.9% share.
During H2 2023, the company’s losses rose to £1.53m compared with £1.31m for the same period in 2022.
A fall in administrative expenses to £585,000 (H2 2022: £633,000) included an increase in project development costs to £382,000 (£261,000).
Total project development costs rose to £460,000 (£261,000) with the majority £268,000 spent on lithium projects in Zimbabwe (£15,000).
Payroll costs decreased to £307,000 (£329,000), while cash and cash equivalents totalled £82,000 (£242,000).
Red Rock’s weighted average number of ordinary shares of £0.0001 in issue, used for basic EPS* doubled to 2,590,767,190 (1,279,734,195).
The company still awaits payment of its arbitration award and costs from its partner in the Democratic Republic of Congo.
Listing of Elephant Oil Corporation, with assets onshore Namibia and Benin, continues to be delayed. Red Rock holds a 4.64% interest.
*earnings per share