Red Rock Resources plc last year recorded modest improvements across its group’s interests in manganese, gold, copper and cobalt.
FINANCES
In its unaudited results for the six months to 31 December 2020, the company’s total equity increased by 20.4% to £16.659 million, following a 53.7% increase over the previous six months.
Current and non-current assets together increased by £2.299m while liabilities decreased by £0.53m.
Losses for the six months were £0.43m compared with a profit of £0.337m for the same period in 2019.
This reflected an increase in administration costs, including employment costs, partly as a result of its joint venture company, Red Rock Australasia Pty Ltd, increasing land holdings and preparing for exploration and listing.
Losses were also affected by Red Rock’s investment in Jupiter Mining Ltd which saw a reduction in dividends as Tshipi e Ntle Manganese Mining Proprietary Ltd grew cautious of distributions at the height of Covid-19.
OUTLOOK
Red Rock chairman Andrew Bell said that opportunities, including three IPOs, for the company seemed promising.
“The value of our marketable securities and cash is near £4m.
“It has been higher recently, and with the receipt of anticipated dividends from Jupiter Mines Ltd, an in specie share distribution and IPO of Juno Minerals Ltd, and the dynamism of [joint venture partner in Australia] Power Metal Resources plc with its diverse portfolio, we consider it reasonable to aim to bring that figure to a level somewhat higher by our June year-end.
“With three IPOs to look forward to from our holdings, 2021 is likely to be a strong year for the company, with liquidity continuing to increase in the second half of the year, and a medium-term target of £20m for cash and liquid investments.
“If we want to advance to become a mid-tier mineral exploration and production company, we need from here to give increasing importance to building and maintaining a high level of liquidity.
“We are in a better position to do so than we have ever been.”