31st Mar 2014 09:53
LONDON (Alliance News) - Red Rock Resources PLC Monday said its pretax loss narrowed in its first-half but the sale process of part interest in its Greenland operations is continuing slowly.
The mining and exploration company with operations in Greenland, Colombia, Ivory Coast and Kenya said its pretax loss narrowed significantly to GBP1.3 million for the six months ended December 31 from USD15.4 million in 2012.
The company noted that its 2012 figures were hit by a GBP11.1 million impairment charge and a GBP2.4 million loss on the sale of an investment which skewed some of the comparative figures.
Red Rock said its sale of minerals revenues were largely flat at GBP1.5 million but its cost of sales fell 25% to GBP801,867 from GBP1.1 million, despite a 28% fall in the gold price during the period. The company said in 2014 it plans to build on improved operational performance in Colombia to generate stronger profit levels.
The company also said its administrative expenses fell 7.0% to GBP878,409 from GBP944,079 and its exploration expenses fell 88% to GBP14,816 from GBP120,794.
However, Red Rock noted that its ongoing sale of part of its interest in its Greenland Iron Ore project has moved slowly and it is disappointed that it has not yet concluded.
The company said that Greenland has reached a stage where in the current market its emphasis is on realisation rather than on continued exploration, for which its small size and high cost of capital could make it ill-suited.
Red Rock shares were down 12.2% to 0.260 pence, putting it in the top AIM fallers Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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