Share Name Share Symbol Market Type Share ISIN Share Description
Red Rock Resources LSE:RRR London Ordinary Share GB00BYWKBV38 ORD 0.01P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.075p -7.69% 0.90p 0.85p 0.95p 0.975p 0.90p 0.975p 4,105,999 16:26:30
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 -1.1 -0.2 - 4.49

Red Rock Resources plc Align Research coverage initiation

03/01/2018 7:15am

RNS Non-Regulatory


Red Rock Resources plc

03 January 2018

Red Rock Resources - Initiation of Coverage

Conviction Buy - Price Target 2.89p

Compelling portfolio of commodity investments underpinned by RRR's stake in Jupiter Mines expected to be worth one and a half times the current market cap providing the rest for free

Red Rock Resources joined AIM in 2005 to advance iron ore and manganese projects in Australia. An early deal with ASX-listed Jupiter Mines paved the way for a lot of future success which propelled the shares from 1p to 20p. Today, the company is still headed by founder Andrew Bell and continues to pursue a strategy based on a combination of corporate deal making alongside exploration.

Negotiated a series of strategic deals based on providing the 'last dollar'

Red Rock is a small cap that punches well above its weight. The recent Steelmin deal sees them taking a 20% stake for providing the finance to get this ferrosilicon smelter complex back into production in 2018. Red Rock may emerge with a far larger interest and share of profits.

Poised for substantial growth with battery metals

The portfolio is being broadened to include battery metals. Red Rock has interests in manganese, which is now being heralded as a future battery metal, and is undertaking DD on an exciting copper/cobalt play. Big value could be added by driving such a project towards early cash flow generation.

EBITDA multiples and peer comparisons suggest an upside of 204%

Red Rock's stake in Jupiter Mines, assuming an upcoming IPO valuation of A$1 billion (GBP574 million), is worth more than the company's current market cap. In addition, our conservative valuation also demonstrates that the stock is highly under-priced ex this stake. We initiate coverage of Red Rock Resources with a target price of 2.89p and a Conviction Buy stance.

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This information is provided by RNS

The company news service from the London Stock Exchange



(END) Dow Jones Newswires

January 03, 2018 02:15 ET (07:15 GMT)

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