Red Rock Resources Swings To Interim Loss Due To Foreign Exchange

26th Mar 2018 15:48

LONDON (Alliance News) - Red Rock Resources PLC said on Monday it swung to an interim loss due to foreign exchange losses, though still expects to post a profit for the full-year.

The company said it swung to a pretax loss of GBP114,874 for the six months to December 31 from a profit of GBP147,662 a year before.

"This was primarily as a result of the reversal into losses of the foreign exchange gains made on dollar items in that year, that had resulted from the significant decline in sterling in late 2016," the company said in a statement.

The company made a GBP46,216 loss due to foreign currency rates in the period, compared to a gain of GBP235,900 a year earlier.

Total assets increased 31% to GBP22.3 million in the half year from the position as at June 30.

However, Red Rock said it expects to report a full-year profit for the year ending June 30, for the first time since 2011, provided there are no further impairment provisions booked in the period.

In April or May the company is due to be repaid approximately USD840,000 on a promissory note with respect to its gold interests in Colombia. Red Rock said it therefore anticipates ending the year in a strong financial position.

Shares in Red Rock were down 5.9% at 0.9643 pence on Monday.

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