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Half-year Report

31st Mar 2025 17:04

RNS Number : 9967C
Red Rock Resources plc
31 March 2025
 

 

 

31 March 2025

 

 

Red Rock Resources plc

Unaudited half-yearly results for the six months ended 31 December 2024

 

Red Rock Resources plc ("Red Rock" or "the Company"), the natural resources investment, exploration, and development company with interests in manganese, gold, copper and cobalt, and other materials, announces its half-yearly results for the six months ended 31 December 2024.

 

Chairman's Statement

 

The statement we released with the Final Results for the year to 30th June 2024, and the statement released with the interim results a year ago, tell a story, in relation to our interests in the DRC, that is consistent but has still not advanced to the anticipated conclusion.

 

In the DRC some local parties expected to take the benefits of sale of our majority owned copper-cobalt asset through a disposition of which we were unaware. We challenged this, and as we have comprehensive records to support our position have always assumed that we would eventually prevail. We had early victories in court cases relating to the $5,000,000m already paid and our share thereof, and then went to arbitration in relation to our share of the $15,000,000 still held on behalf of the vendors by the buyer.

 

We are now at the point where the judgement is near the point of publication, and retain the same degree of confidence. Because of the slowness of procedures in Kinshasa, we are not writing today the report we expected to be writing, but the management of the Company is every day pursuing the matter with all possible commitment and assiduity.

 

The direct consequences of a favourable outcome in the DRC would be potentially large in relation to the current value of the Company. The indirect consequences, in the form of opening the door to further proceedings, could also be large. It is also likely that our ability to work on high level projects in the DRC would be enhanced, and our ability to advance other projects of the Company would become greater.

 

Conversely, a failure, or a further long delay, in the DRC, neither of which appear likely to the management, would leave the Company's short term finances under significant strain as the level of current liabilities now reflects the expectation of an early award. Immediate action would have to be taken to dispose of some non-core assets, and other action taken to restructure or convert some of the Company's convertible and debt securities and/or raise money on what could be dilutive terms. The Company's convertible and debt holders have been strongly supportive of the Company, and we are discussing with the loan note holders the terms of an extension to the Convertible Loan Notes. A failure to generate sufficient funds by disposals or external funding might put in question the Company's ability to continue operations.

 

Current liabilities include an amount of approximately £644,000 due to Power Metal Resources PLC (the "Vendor") in respect of the Company's purchase of a minority stake in Red Rock's assets in Australia, where the Company continues exploration activities and the pursuit of potential capital transactions. Red Rock and the Vendor are in discussions to set a mutually agreeable timing of this payment.

 

The Company is also discussing a possible transaction or transactions in relation to its Burkina Faso gold assets. Meanwhile some of our gold production equipment is in process of being released from customs in Burkina Faso and a progress report on local plans and operations will then be released.

 

Of the two principal investment interests of the Company, the royalty interest in the El Limon gold asset in Colombia held by Soma Gold may start paying again after this quarter as Soma's production increases and is expected to require use of the El Limon mill. Elephant Oil Inc, a private onshore oil company active in West Africa, is nearing close of a funding transaction shortly that would enable it to advance its highly prospective West African onshore oil projects.

 

An operational update will be released in April, which will contain more information on the DRC arbitration and on other developments.

 

Andrew Bell

 Chairman

 

 

For further information, please contact:

Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc

Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited

Bob Roberts 0203 8696081 Broker Clear Capital Corporate Broking

 

This announcement contains inside information for the purposes of Article 7 of Regulation 2014/596/EU, which is part of domestic UK law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310) and is disclosed in accordance with the Company's obligations under Article 17.

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.

Consolidated statement of financial position as at 31 December 2024

 

Notes

31 December

2024

31 December

2023

30 June 2024

Unaudited,

£'000

Unaudited,

£'000

Audited,

£'000

ASSETS

Non-current assets

Investments in associates and joint ventures

1,030

1,030

1,030

Financial instruments

8

736

736

736

Exploration assets

9

13,707

13,358

13,575

Mineral tenements

501

710

532

Property, Plant & Equipment

19

16

19

Non-current receivables

2,560

2,506

2,560

Total non-current assets

18,553

18,356

18,453

Current assets

Cash and cash equivalents

6

82

38

Loans and other receivables

846

667

807

 

 

Total current assets

 

 

852

 

 

749

845

 

 

TOTAL ASSETS

 

 

19,405

 

 

19,105

19,298

 

EQUITY AND LIABILITIES

Equity attributable to owners of the parent

Called up share capital

10

3,281

3,047

3,143

Share premium account

34,206

33,426

33,804

Other reserves

1,385

2,040

1,193

Retained earnings

(26,871)

(23,830)

(25,323)

Total equity attributable to owners of the parent

12,001

14,683

12,817

 

Non-controlling interest

 

(152)

 

(866)

(150)

Total equity

11,849

13,817

12,667

 

LIABILITIES

Non-current liabilities

Trade and other payables

-

813

-

Borrowings

11

1,061

734

756

Total non-current liabilities

1,061

1,547

756

Current liabilities

Trade and other payables

2,800

1,702

2,838

Short term borrowings

11

3,695

2,039

3,037

Total current liabilities

6,495

3,741

5,875

TOTAL EQUITY AND LIABILITIES

19,405

19,105

19,298

 

The accompanying notes form an integral part of these financial statements.

Consolidated statement of income

 

for the period ended 31 December 2024

 

Notes

6 months to 31 December 2024

6 months to 31

December 2023

Unaudited,

£'000

Unaudited,

£'000

 

Administrative expenses

 

4

 

(623)

 

(585)

Project development costs

5

(96)

(382)

Exploration expenses

(56)

(288)

Foreign exchange gain/(loss)

31

16

Finance income/(expenses), net

6

(804)

(293)

(Loss)/profit for the period

(1,548)

(1,532)

Tax credit

-

-

(Loss)/profit for the period

7

(1,548)

(1,532)

 

(Loss)/profit for the period attributable to:

Equity holders of the parent

(1,548)

(1,353)

Non-controlling interest

-

(179)

(1,548)

(1,532)

 

(Loss)/profit per share

(Loss)/profit per share - basic, pence

3

(0.03)

(0.06)

(Loss)/profit per share - diluted, pence

3

(0.03)

(0.06)

 

The accompanying notes form an integral part of these financial statements.

Consolidated statement of comprehensive income for the period ended 31 December 2024

 

6 months to 31

December 2024

6 months to 31

December 2023

Unaudited, £'000

Unaudited, £'000

 

(Loss) /profit for the period

 

(1,548)

 

(1,532)

Unrealised foreign currency loss arising upon retranslation of foreign

operations

183

65

Total comprehensive income/(loss) for the period

(1,365)

(1,467)

 

Total comprehensive income/(loss) for the period attributable to:

Equity holders of the parent

(1,323)

(1,288)

Non-controlling interest

(2)

(179)

(1,365)

(1,467)

 

The accompanying notes form an integral part of these financial statements.

Consolidated statement of changes in equity for the period ended 31 December 2024

 

The movements in equity during the period were as follows:

 

 

Share capital

 

Share premium

account

 

 

Retained earnings

 

 

Other reserves

Total attributable to owners of

the Parent

 

Non- controlling

interest

 

 

Total equity

Unaudited

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

As at 30 June 2024 (audited)

 

3,143

 

33,804

 

(25,323)

 

1,193

 

12,817

 

(150)

 

12,667

Changes in equity for the six- month period ending 31

December 2024

Loss for the period

-

-

(1,548)

-

(1,548)

-

(1,548)

Unrealised foreign currency gains on translation of foreign operations

-

-

-

183

183

(2)

181

Total comprehensive

income/(loss) for the period

-

-

(1,548)

183

(1,365)

(2)

(1,367)

Transactions with shareholders

Issue of shares

138

402

-

-

540

-

540

Warrants issued in the year

-

-

-

9

9

-

9

Total transactions with

shareholders

138

402

-

9

549

-

549

As at 31 December 2024

(unaudited)

3,281

34,206

(26,871)

1,385

12,001

(152)

11,849

 

 

 

As at 30 June 2023 (audited)

 

 

 

2,960

 

 

 

32,785

 

 

 

(22,477)

 

 

 

1,751

 

 

 

15,019

 

 

 

(687)

 

 

 

14,332

Changes in equity for the six- month period ending 31

December 2023

Loss for the period

-

-

(1,353)

-

(1,353)

(179)

(1,532)

Unrealised foreign currency gains on translation of foreign operations

-

-

-

65

65

-

65

Total comprehensive

income/(loss) for the period

-

-

(1,353)

65

(1,288)

(179)

(1,467)

Transactions with shareholders

 

 

 

 

 

 

 

Issue of shares

87

641

-

-

728

-

728

Shares to issue

-

-

-

224

224

-

224

Total transactions with

shareholders

87

641

 

224

952

-

952

As at 31 December 2023

(unaudited)

3,047

33,426

(23,830)

2,040

14,683

(866)

13,817

 

FVTOCI

financial

assets

reserve

Foreign currency translation

reserve

Share- based payment

reserve

Share to Issue reserve

Warrants reserve

Other Reserve

Total other reserves

Unaudited

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

As at 30 June 2024 (audited)

 

402

 

118

 

230

 

-

 

1,091

 

(648)

 

1,193

Changes in equity for six months ended 31 December 2021

Unrealised foreign currency loss on translation of foreign

operations

-

183

-

-

-

-

183

Total other comprehensive income for the period

-

183

-

-

-

-

183

Transactions with shareholders

Warrants issued in the year

-

-

-

-

9

-

9

Total transactions with shareholders

-

-

-

-

9

-

9

As at 31 December 2024 (unaudited)

402

301

230

-

1,100

(648)

1,385

 

 

 

As at 30 June 2023 (audited)

 

 

 

402

 

 

 

125

 

 

 

230

 

 

 

-

 

 

 

994

 

 

 

-

 

 

 

1,751

Changes in equity for six months ended 31 December 2023

Unrealised foreign currency loss on translation of foreign

operations

-

65

-

-

-

-

65

Total other comprehensive income for the period

-

65

-

-

-

-

65

Transactions with shareholders

 

 

 

 

 

Grant of warrants

-

-

-

224

-

-

224

Total transactions with shareholders

-

-

-

224

-

-

224

As at 31 December 2023 (unaudited)

402

190

230

224

994

-

2,040

Consolidated statement of cash flows for the period ended 31 December 2024

 

6 months to 31

December 2024

6 months to 31

December 2023

Unaudited,

£'000

Unaudited,

£'000

Cash flows from operating activities

(Loss)/profit before tax

(1,548)

(1,532)

Decrease/(Increase) in receivables

(39)

3

Increase/(Decrease) in payables

64

(33)

Share-based payments

8

-

Depreciation

-

2

Finance costs/income, net

796

293

Currency adjustments

(7)

(6)

Net cash outflow from operations

(726)

(1,273)

 

Cash flows from investing activities

Payments for capitalised exploration costs

(132)

-

Payments to increase interest in tenements

-

(12)

Net cash (outflow)/inflow from investing activities

(132)

(12)

 

Cash flows from financing activities

Proceeds from issue of shares

251

472

Interest paid

-

(29)

Proceeds from new borrowings

605

789

Repayments of borrowings

(32)

(85)

Net cash inflow/(outflow) from financing activities

824

1,147

 

Net increase in cash and cash equivalents

 

(34)

 

(138)

Cash and cash equivalents at the beginning of period

38

155

Exchange losses on cash and cash equivalents

2

65

Cash and cash equivalents at end of period

6

82

Half-yearly report notes

 

for the period ended 31 December 2024

 

1

Company and group

 

As at 31 December 2024, 30 June 2024 and 31 December 2023 the Company had one or more operating subsidiaries and has therefore prepared full and interim consolidated financial statements respectively.

 

The Company will report again for the year ending 30 June 2025.

 

The financial information contained in this half yearly report does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the year ended 30 June 2024 has been extracted from the statutory accounts for the Group for that year. Statutory accounts for the year ended 30 June 2023, upon which the auditors gave an unqualified audit report which did not contain a statement under Section 498(2) or (3) of the Companies Act 2006, have been filed with the Registrar of Companies.

 

2

Accounting Polices

 

Basis of preparation

The consolidated interim financial information has been prepared in accordance with IAS 34 'Interim Financial Reporting.' The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 June 2024, which have been prepared in accordance with IFRS.

 

3

Earnings per share

The following reflects the loss and number of shares data used in the basic and diluted loss per share computations:

6 months to

31 December 2024

6 months to

31 December 2023

Unaudited

Unaudited

Profit/(loss) attributable to equity holders of the parent company, Thousand pounds Sterling

(1,548)

(1,532)

 

Weighted average number of Ordinary shares of £0.0001 in issue, used for basic EPS

 

4,827,628,410

 

2,590,767,190

Effect of all dilutive potential ordinary shares from potential ordinary shares that would have to be issued, if all loan notes convertible at the discretion of the noteholder converted at the

beginning of the period

 

-

 

 

-

 

Weighted average number of Ordinary shares of £0.0001 in issue, including potential ordinary shares, used for diluted EPS

 

4,827,628,410

 

2,590,767,190

 

Profit/(loss) per share - basic, pence

 

(0.03)

 

(0.06)

 

Profit/(loss) per share - diluted, pence

 

(0.03)

 

(0.06)

 

EPS for the year is approximately half of the level of the comparative period due to the effect of the increase of the weighted number of

ordinary shares in issue during the period of report.

 

 

At 31 December 2023 and 31 December 2022, the effect of the following the instruments is anti-dilutive, therefore they were not included into the diluted earnings per share calculation.

6 months to

31 December 2024

6 months to

31 December 2023

Unaudited

Unaudited

Share options granted to employees - not vested and/or out of the money

21,000,000

21,000,000

Number of warrants given to shareholders as a part of placing

equity instruments - out of the money

741,450,002

314,178,213

Total number  of  contingently issuable shares  that  could

potentially dilute basic earnings per share in future

 

762,450,002

 

335,178,213

 

Total number of contingently issuable shares that could potentially dilute basic earnings per share in future and anti- dilutive potential ordinary shares that were not included into the fully diluted EPS calculation

 

 

762,450,002

 

 

 

 

335,178,213

 

There were no ordinary share transactions after 31 December 2024, that that could have changed the EPS calculations significantly if those transactions had occurred before the end of the reporting period.

 

4 Administrative expenses

 

6 months to

31 December 2024

6 months to

31 December 2023

Unaudited

£'000

Unaudited

£'000

Staff Costs:

Payroll

235

307

Pension

20

27

Consultants

23

8

HMRC / PAYE

19

21

Professional Services:

Accounting

66

25

Legal

1

-

Marketing

2

16

Other

-

-

Regulatory Compliance

69

40

Travel

62

32

Office and Admin:

General

53

32

IT costs

4

5

Rent

43

46

Insurance

27

25

Total administrative expenses

623

585

 

Included in the above admin costs for the year are £108,000 (2023: £168,000) in costs related to the administration of subsidiary project undertakings.

 

5 Project development expenses

 

Project development expenses include costs incurred during the assessment and due diligence phases of a project, when material uncertainties exist regarding whether the project meets the Company's investment and development criteria and whether as a result the project will be advanced further.

6 months to

31 December 2024

6 months to

31 December 2023

Unaudited

£'000

Unaudited

£'000

Project development expenses

VUP (Congo)

13

6

Zlata Bana (Slovakia)

-

-

Galaxy (Congo)

-

-

Luanshimba (Congo)

-

-

Kinsevere (Congo)

-

-

Mid Migori Mines (Kenya)

-

-

Zimbabwe Lithium

-

268

Greenland

-

84

Others

83

102

Total project development expenses

96

460

 

4 Finance income/(expenses), net

 

6 months to

31 December 2024

6 months to

31 December 2023

Unaudited

£'000

Unaudited

£'000

Interest income

-

-

Share based payment

(8)

-

Interest expense

(796)

(293)

Total Finance income/(expenses), net

(804)

(293)

 

7

Segmental analysis

 

 

Kenyan exploration

 

Australian exploration

 

DRC

exploration

Other exploration

Corporate

and unallocated

 

 

Total

For the six-month period to 31 December 2024

£'000

£'000

£'000

£'000

£'000

£'000

Revenue

Total segment external revenue

-

-

-

-

-

-

Result

Segment results

(46)

(117)

-

(10)

(579)

(752)

Loss before tax and finance costs

 

Finance income

 

-

Interest expense

(796)

Loss before tax

(1,548)

Tax

-

Loss for the period

(1,548)

 

 

Kenyan exploration

 

Australian exploration

 

DRC

exploration

Other exploration

Corporate

and unallocated

 

 

Total

For the six-month period to 31 December 2023

£'000

£'000

£'000

£'000

£'000

£'000

Revenue

Total segment external revenue

-

-

-

-

-

-

Result

Segment results

(187)

(169)

(9)

(468)

(406)

(1,239)

Loss before tax and finance costs

 

Interest income

 

-

Interest expense

(293)

Loss before tax

(1,532)

Tax

-

Profit for the period

(1,532)

 

 

A measure of total assets and liabilities for each segment is not readily available and so this information has not been presented.

 

8

Financial instruments - Fair value through other comprehensive income

31 December

2024

Unaudited

£'000

31 December

2023

Unaudited

£'000

30 June

2024

Audited

£'000

At the beginning of the period

736

736

736

Additions

-

-

-

Disposals

-

-

-

Change in fair value

-

-

-

At the end of the period

736

736

736

 

9

Exploration assets

31 December

2024

Unaudited

£'000

31 December

2023

Unaudited

£'000

30 June

2024

Audited

£'000

At the beginning of the period

13,576

13,358

13,358

Additions

131

-

419

Impairments

-

-

(201)

Reclassification from other current assets

-

-

-

At the end of the period

13,707

13,358

13,576

 

10

 

Share Capital of the company

Number

Nominal,

£'000

 

Deferred shares of £0.0009 each

 

2,371,116,172

 

2,134

A deferred shares of £0.000096 each

6,033,861,125

579

Ordinary shares of £0.0001 each

5,684,368,853

568

As at 31 December 2023

3,281

 

 

11

Borrowings

 

Reconciliation of Liabilities Arising from Financing Activities

 

 

 

 

Group

 

 

30 June

2024

 

Cash flow

loans received

 

Cash flow repayments

 

Non - cash flow

Conversions

 

Non - cash flow

Interest accrued

 

Non-cash

flow Reclassification

 

Non-cash

flow Forex movement

 

 

31 Dec

2024

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Convertible notes

2,877

605

-

(284)

430

(94)

-

3,534

Other loans

916

-

(32)

-

329

(4)

13

1,222

Total

3,793

605

(32)

(284)

759

(98)

13

4,756

 

 

Half-yearly report notes

for the period ended 31 December 2024, continued

12  Capital Management

Management controls the capital of the Group in order to control risks, provide the shareholders with adequate returns and ensure that the Group can fund its operations and continue as a going concern.

The Group's debt and capital includes ordinary share capital and financial liabilities, supported by financial assets. There are no externally imposed capital requirements.

Management effectively manages the Group's capital by assessing the Group's financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.

There have been no changes in the strategy adopted by management to control the capital of the Group since the prior period.

 

13  Subsequent Events

 

On 29 January 2025 the Company announced the extension of the maturity of convertible loan notes totaling £562,840 in principal and £22,513 of interest to 18 March 2025, the conversion of the accrued interest into 54,911,214 new ordinary shares in the company, the revision of the conversion price of the remaining loan principal to 0.075 pence per share and the issuance of warrants to noteholders representing 5% of the value of the extended principal, exercisable at the newly revised conversion price of the convertible loans. The Company further announced the issuance of 122,558,535 new ordinary shares at 0.041 pence per share in settlement of various professional fees, the issuance of 48,780,487 new ordinary shares at 0.041 pence per share for cash proceeds and the issue of 487,804,878 new ordinary shares at 0.041 pence per share in settlement of £200,000 of outstanding debt.

 

On 31 January 2025 the Company announced the conversion of £10,000 of debt into 28,571,428 new ordinary shares at 0.035 pence per share, with a 1 for 1 warrant exercisable for 3 years at 0.04 pence per share, and the conversion of a further £10,000 of debt into 25,000,000 new ordinary shares at a price of 0.04 pence per share with a 1 for 1 warrant exercisable for 3 years at 0.05 pence per share.

 

On 25 February 2025 the Company announced the conversion of £25,000 of debt into 71,428,571 new ordinary shares at a price of 0.035 pence per share, with a 1 for 1 warrant exercisable for 3 years at 0.045v pence per share.

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END
 
 
IR FLFEEVTILVIE

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