23rd Nov 2018 15:44
LONDON (Alliance News) - Mineral exploration company Red Rock Resources PLC said Friday it has swung to an annual profit as its gain on investments multiplied.
Chairman & Chief Executive Officer Andrew Bell said: "It's been another exciting year for Red Rock, we are well positioned through diverse and varied sources of capital and have set the foundation for growth in 2019 and beyond."
For the year to June 30, the company's gains on sales of investments increased to GBP1.2 million from GBP90,200.
This led to a pretax profit of GBP78,120 for the year, compared to a GBP1.1 million loss a year ago.
Looking ahead, Red Rock said its "key opportunities for growth and expansion" in the near future lie in its Kenyan and Congolese activities.
"We shall therefore concentrate on the maximisation, by transactions, exploration, or development planning, of the value of these assets to our shareholders and our share price. In doing so we hope to add profits from copper and cobalt to our revenue mix," it added.
Further, it said, as it hopes to increase revenue and profit in its new year, Red Rock is to look to possibly return some of this to shareholders through either buybacks or dividends.
On Thursday, Red Rock Resources said conditions for a joint venture development of cobalt and copper assets in the Democratic Republic of Congo had been fulfilled, and therefore the company would proceed with completion of the agreement with Bring Minerals SAU.
Red Rock made the initial cash payment of USD250,000 and will make further payments to the joint venture upon execution of documents governing the joint venture and achievement of certain milestones in exploring the assets.
Red Rock shares were trading up 4.0% at 0.65 pence each on Friday afternoon.
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