26th Mar 2007 12:19
Red Rock Resources plc26 March 2007 Red Rock Resources plc Half-yearly report - six months ended 31 December 2006 Chairman's statement Dear Shareholder The six months to 31st December 2006 saw continuing progress. The share priceduring the period reflected what we felt to be happening in the company, as weprogressed our key projects, and rose from 1.25p at the beginning of the periodto 2.5p at the end of it, although this was a period that saw generally poorprice performance by our peer group. Corporate events On 3rd August we completed a further placing of 5,018,750 shares at 2p per sharefollowing the initial placing of 5,018,750 shares announced in June. Theplacement price was above the company's market price at the time and placeesincluded the Company's largest shareholder, Regency Mines plc. On 22nd September we welcomed Michael C. Nott to the board. Mike Nott, aged 57,has a BSc in geology from Queen Mary College, London University, and an MSc inMineral Production Management from the Royal School of Mines. His extensiveexperience in Zambia and the UK and his knowledge and perspectives are valuableto the Company. We redesigned our website, that is now available in English, German, andChinese, and towards the end of 2006 we instituted a programme of improvedshareholder communications by sending out our first Newsletter. We had a goodresponse to this, and hope to develop further our ability to keep shareholdersinformed of our progress. We do look forward to hearing shareholders views,whatever the feedback. Exploration We began mapping and sampling at our 400 ha manganese project at Chiwefwe nearMkushi in Zambia. Encouraging results from this programme led to a trenchingand 15-hole shallow RAB drilling programme designed to test whethermineralisation was a surficial phenomenon or extended at depth. Sufficient data was obtained from this work to justify the conclusion that highgrade bodies might exist near surface that would enable us to scale up to largescale production using selective mining. CSA Consultants have proposed a moreextensive shallow diamond drill programme to investigate this further.Meanwhile, we have been ceded a Small Scale Mining License and have significantquantities of high grade stockpiled material on site with the ability to obtainfurther material and sustain a modest level of production from surface material. Jupiter Mines Ltd, the option holder on our Mt Ida and Mt Hope iron oretenements in Western Australia, discovered a new high grade haematite patchgrading 66.25% iron 1500m north of the Mt Ida trig point, and an eastern zonewith some high values extending over 10km of strike. The possibility that theMt Ida mineralisation combined with that discovered by drilling on their MtMason tenement adjacent to the west will bulk up to form an economic deposit hasled them to plan a further sampling and drilling programme on Mt Ida. Preliminary geophysical reinterpretation, and limited sampling, on the company'suranium tenements in the Northern Territory has taken place and a report on theuranium assets of the company prepared. In accordance with Northern Territorylaw, by which after the first year of tenement grant the holding size has to bereduced by 50% on each anniversary, the Woolgni license EL 23569 underwentreduction to 709.3 sq km. During the second half of the Company's year the EdithRiver license EL 23568 will come up for reduction. Outlook Following the end of the period under review the Company has raised a further£699,000 (£185,000 of which was received by the period end) through two placingsat 2p per share. The placings are to provide further funding for explorationwork in Zambia with the object of bringing the Manganese assets towards earlyproduction, and for working capital. The Uranium market is buoyant, and prospects for the uranium price in 2007 seemfavourable. Uranium stocks have seen strong speculative interest on theCanadian and Australian stock markets. The Directors have appointed DJCarmichael Capital Markets in Australia to advise on ways to create furtheradded value to the Company's uranium assets, and are currently evaluatingvarious proposals. We expect the forthcoming period to be one of much activity. Significantdevelopments will be communicated to shareholders as they occur. We thank you for your support in 2006. Whatever the year may hold for the restof our sector, we look to 2007 with confidence and enthusiasm. Andrew R. McM. BellChairman26 March 2007 Consolidated profit & loss account 6 months to 6 months to Year to 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £,000 £,000 £,000Operating income 16 - -Direct costs (15) - -Gross profit 1 - - Exploration costs (93) - (58)Administrative expenses (143) (100) (134)Currency loss - - (5) Operating loss (235) (100) (197) Interest receivable - 2 4 Loss on ordinary activities before taxation (235) (98) (193) Tax on loss on ordinary activities - - - Loss on ordinary activities after taxation (235) (98) (193) Retained loss for the period £(235) £(98) £(193) Loss per share - see note 3Basic (0.14) pence (0.07) pence (0.13) penceFully diluted (0.14) pence (0.07) pence (0.13) pence Consolidated balance sheet 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £,000 £,000 £,000 Fixed assets 963 939 999 Current assetsDebtors 137 17 26Cash at bank and in hand 46 217 101Current asset investments 81 - 16 264 234 143 Creditors - amounts falling due within one year (258) (74) (39) Net current assets 6 160 104 Total assets less current liabilities £969 £1,099 £1,103 Capital and reservesCalled up share capital 172 162 167Share premium account 1,237 1,051 1,142Profit and loss account (440) (111) (206)Other reserves - (3) - Equity shareholders' funds £969 £1,099 £1,103 Consolidated cash flow statement 6 months to 6 months to Year to 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £,000 £,000 £,000 Net cash inflow/(outflow) from operating (380) (181) (340)activitiesCapital expenditure and investment - (604) (121) Cash outflow before financing (380) (785) (461) Financing - equity 100 1,002 562Financing - short term loans 225 - - (Decrease) / increase in cash in the period £(55) £217 £101 Reconciliation of movement in shareholders' funds 6 months to 6 months to Year to 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £,000 £,000 £,000 Total recognised losses relating to the period (235) (98) (193) Proceeds of share issues, net of expenses 100 995 1,091 Other reserves (3) - Increase in shareholders' funds (135) 894 898 Opening shareholders' funds 1,103 205 205 Closing shareholders' funds £968 £1,099 £1,103 Half-yearly report notes 1. Half-yearly report This half-yearly report was approved by the Directors on 26 March 2007. The information relating to the six month periods to 31 December 2005 and 31December 2006 is unaudited. The information relating to the year ended 30 June 2006 is extracted from theaudited accounts of the Company which have been filed at Companies House and onwhich the auditors issued an unqualified audit report. 2. Basis of accounting The report has been prepared using accounting policies and practices that areconsistent with those adopted in the statutory accounts for the year ended 30June 2006, although the information does not constitute statutory accountswithin the meaning of section 240 of the Companies Act 1985. The informationrelating to the six month period to 31 December 2005 has been adjusted toreflect this. These half-yearly financial statements consolidate the financial statements ofthe Company and its subsidiary. The Company and Group will report again for the full year to 30 June 2007. 3. Loss per share 6 months to 6 months to Year to 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £,000 £,000 £,000 These have been calculated on a loss of: (98) (98) (193) The weighted average number of shares used was: 170,933,777 147,015,978 154,319,058 Share options were no dilutive during the periodand expired on 31 December 2006 Basic loss per share: (0.14) pence (0.07) pence (0.1) pence Copies of this half-yearly report are available free of charge by application inwriting to the Company Secretary at the Company's registered office, 55 GowerStreet, London WC1E 6HQ, or by email to [email protected]. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Red Rock Resources