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Share Name Share Symbol Market Type Share ISIN Share Description
Red Rock Resources Plc 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
  +0.00p +0.00% 0.55p 0.50p 0.60p 0.55p 0.55p 0.55p 1,028,942 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 0.1 0.0 27.5 3.37

Red Rock Resources plc Half-year Report

29/03/2019 7:01am

UK Regulatory (RNS & others)


TIDMRRR

RNS Number : 4012U

Red Rock Resources plc

29 March 2019

 
 
 
 
                               29 March 2019 
 
 
                           Red Rock Resources plc 
           Unaudited half-yearly results for the six months ended 
                              31 December 2018 
 
     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 2018. 
 
                            Chairman's Statement 
 
      In the six-month period ending 31 December 2018 the loss before 
        tax from continuing operations was GBP282,533 compared with 
      GBP114,874 in the comparable period of the previous year. Total 
        comprehensive loss for the period was GBP2,048,037 compared 
     with a total comprehensive profit of GBP4,620,042 for the previous 
        year. This loss derived mainly from a GBP1,824,757 downward 
       revaluation of available for sale investments, reflecting the 
       decline in the market price of the Company's shares in Jupiter 
                            Mines Ltd (ASX:JMS). 
 
        We note the adoption of some new accounting standards during 
     the period. These have not had a material impact on the financial 
      information of the Group. IFRS 9 "Financial Instruments" impact 
       both the measurement and disclosures of financial instruments. 
       The group has not retrospectively re-stated prior period. All 
      investments into equity instruments, that were held by the Group 
        at 30 June 2018, which were included into Available for sale 
        financial assets line in the Statement of financial position 
        at 30 June 2018, are held by the Group with a long-term view 
    and are not held for trading. The Group has analysed its investments 
       into equity instruments on investment-by-investment basis and 
   took a decision to designate all of its Available for sale investments 
      held at the date of IFRS 9 adoption as fair value through other 
   comprehensive income financial assets (FVTOCI). For equity instruments 
        designated at FVTOCI under IFRS 9, only dividend income will 
        be recognised in profit or loss, all other gains and losses 
    will be recognised in OCI without reclassification on derecognition. 
 
        Manganese producer Jupiter Mines Limited, where the Company 
       holds 18,524,914 shares, had relisted on the Australian Stock 
       Exchange in April 2018 at 40c a share but in common with many 
        other resource shares performed poorly in the six months to 
       31 December 2018, at which date it stood at 25c a share. This 
        diminution in price was reflected in a change in fair value 
        and so the carrying value of financial assets in the balance 
       sheet, and was taken to comprehensive income as a revaluation 
       of available for sale investments, amounting to GBP1,479,439. 
 
        The current price of Jupiter Mines has recovered to 34.5c a 
       share, 38% higher than at 31 December, and better reflects the 
        fact that the dividend yield of that company is high and its 
        '70% plus' dividend payout policy means that strong dividend 
      flows are likely to continue. For the year to 28 February 2019, 
      Jupiter has declared dividends of 7.5c, of which the final 2.5c 
        is payable in May, amounting to a 21.7% annual yield at the 
    current Jupiter price. It is encouraging to note that the manganese 
     price continues to maintain stable levels above $5 per dry metric 
       ton unit (DMTU) for 37% ore FOB Port Elizabeth, at which level 
      Jupiter as one of the cheapest producers can expect to maintain 
                       a high level of profitability. 
 
       The improved iron ore price creates possible opportunities for 
        Jupiter's Mt Ida magnetite asset in Western Australia, over 
      which the Company retains a 0.75% Gross Revenue Iron Ore Royalty 
    (GRR), and a further 0.45% GRR which would transfer in two tranches 
      to Anglo Pacific Group plc for a consideration of USD 8,000,000 
            upon the reaching of certain development milestones. 
 
        Red Rock continues to make progress with the restoration of 
       its rights over its Kenyan gold assets, and on 22 October 2018 
       was able to announce the settlement of legal proceedings after 
       three years. The Company and its local associate have applied 
     for the regrant of the licenses under the transitional provisions 
        of the new Mining Act, and finalisation of this matter will 
      be a key objective for the remaining part of the financial year 
                             ending June 2019. 
 
       The Company received during the period the final payment under 
    the promissory note issued in relation to the sale of its Colombian 
        gold asset, and elected to take part of that payment in the 
        form of 2,500,000 shares in Para Resources, Inc., a company 
       listed on the Venture Exchange of the Toronto Stock Exchange. 
        Para has made great progress since, including the first gold 
        pour at its Gold Road mine in Arizona. Although progress in 
        the refurbishment of the El Limon gold mine in Colombia had 
        consistently lagged expectations, and these delays affected 
     Para's implementation of its third-party gold processing strategy, 
        royalties to Red Rock from these operations are expected to 
        be on a rising trend from this point and ought to be capable 
          of making a healthy six figure contribution to revenues. 
 
       A new and important focus of the Company during the period was 
        its development of its copper and cobalt interests in Congo. 
      Due diligence had been under way since September 2017, and only 
        when we were satisfied with every aspect did we conclude our 
       joint venture, with the various implementation steps noted in 
        the announcements made between 22 November 2018 and 6 March 
        2019. We consider this joint venture, and in particular its 
        most advanced asset, the high grade Musonoi deposit abutted 
        on each side by the major Glencore KOV and T17 mines, to be 
                  important for the future of the Company. 
 
      A further joint venture in exploration ground with Congo Galaxy 
       produced encouraging initial exploration results. Red Rock has 
      in the past carried out cost-effective and efficient exploration 
                   in Africa, and was able to do so here. 
 
     Overall, we spent GBP302,598 during the period on the development 
                       of our projects in the Congo. 
 
        Elsewhere, the holding in Steelmin has proved disappointing, 
        as ferrosilicon prices were low and electricity prices high 
     over the period of the plant's commissioning, and it is currently 
      closed. We do not have high expectations here, and have written 
      off our equity and a portion of debt amounting to GBP256,510.56 
          while efforts continue to find a buyer for the business. 
 
      No significant developments occurred in relation to the various 
   other assets of the Company during the period, although a transaction 
     entered into early in 2019 by Elephant Oil Ltd, where the Company 
      has a small holding, will enable important seismic and appraisal 
        work to be carried out on the onshore assets of that company 
        in Benin, opening the way to further progress at a promising 
       asset. A GBP74,659.97 investment and a GBP306,106.74 loan were 
   made in Amulet Diamond Corp. ("Amulet"), which had been investigating 
       the potential of a diamondiferous pipe in Botswana. Whilst the 
      formal option arrangement held by Amulet with Firestone Diamonds 
        PLC has lapsed and Firestone yesterday announced their full 
       impairment of the relevant asset, it is understood that Amulet 
       is currently in negotiations on a range of options which would 
        see continuing value from this investment. Accordingly, the 
    Company has made no change to the carrying value of this investment. 
 
        The Company will continue to maintain a low cost structure, 
       has its value underpinned by the holding in Jupiter Mines, and 
        will focus its activities in the coming period on unlocking 
      the value of its promising and high quality assets in the Congo 
       and Kenya. Red Rock has made a strategically timed commitment 
        to the Congo, which is now a far better and less problematic 
        jurisdiction in which to operate, and expects the improving 
        stability and outlook of the country to lead to significant 
       investor reappraisal. With the Musonoi copper-cobalt deposit, 
    the Company hopes to prove up a signature asset that will thereafter 
       become the focus of further development, enabling Red Rock to 
     divest itself of what will become non-core activities and assets, 
        and become a company more tightly focussed, as has long been 
        the aim, on the development and delivery of a key high grade 
                               mining asset. 
 
                                Andrew Bell 
                                  Chairman 
                               29 March 2019 
 
 
 
 
 
 

Consolidated statement of financial position

as at 31 December 2018

 
                                  Notes    31 December    31 December        30 June 
                                                  2018           2017           2018 
                                            Unaudited,     Unaudited,       Audited, 
                                                   GBP            GBP            GBP 
 
 ASSETS 
 Non-current assets 
 Investments in associates 
  and joint ventures                         1,490,366        959,630      1,000,374 
 Financial instruments              8        3,127,489     10,741,660      4,705,386 
 Exploration assets                             61,455        280,460              - 
 Non-current receivables                     5,150,122      4,593,408      4,901,196 
 Total non-current assets                    9,829,432     16,575,158     10,606,956 
 
 Current assets 
 Cash and cash equivalents                      27,059        125,218      2,265,636 
 Financial assets - investment 
  in derivatives                                60,345              -         60,345 
 Loans and other receivables                 2,436,795      5,578,095        935,407 
 Total current assets                        2,524,199      5,703,313      3,261,388 
 
 TOTAL ASSETS                               12,353,631     22,278,471     13,868,344 
 
 
 EQUITY AND LIABILITIES 
 Equity attributable to owners 
  of the parent 
 Called up share capital            9        2,773,857      2,763,160      2,766,857 
 Share premium account                      26,499,000     25,767,385     26,016,000 
 Other reserves                              1,590,556      9,639,867      3,392,060 
 Retained earnings                        (21,223,292)   (21,181,084)   (20,941,477) 
                                                                       ------------- 
 Total equity attributable 
  to owners of the parent                    9,640,121     16,989,328     11,233,440 
 
 Non-controlling interest                     (19,806)       (18,105)       (19,088) 
                                         -------------  -------------  ------------- 
 Total equity                                9,620,315     16,971,223     11,214,352 
 
 LIABILITIES 
 Current liabilities 
 Trade and other payables                    1,681,005      1,934,004      1,645,167 
 Short term borrowings             10        1,052,311      3,373,244      1,008,825 
 Total current liabilities                   2,733,316      5,307,248      2,653,992 
 
 TOTAL EQUITY AND LIABILITIES               12,353,631     22,278,471     13,868,344 
 
 

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

Consolidated statement of income

for the period ended 31 December 2018

 
                      Notes                               6 months          6 months 
                                                    to 31 December    to 31 December 
                                                              2018              2017 
                                                        Unaudited,        Unaudited, 
                                                               GBP               GBP 
 
 
 Gain on sale of investments                                     -             3,270 
 Administrative expenses                       4         (268,829)         (293,449) 
 Project development costs                     5         (302,598)          (34,463) 
 Other project expenses                        5          (94,944)          (51,592) 
 Exploration expenses                                      (3,392)           (8,305) 
 Impairment of loans and receivables                     (256,511)                 - 
 Share of losses of associates and joint                       (8)                 - 
  ventures 
 Other income                                                    -             9,692 
 Foreign exchange gain/(loss)                              106,199          (46,216) 
 Finance income/(expenses), net                6           537,550           306,188 
 Profit/(loss) for the period                            (282,533)         (114,874) 
 
 Tax credit                                                      -                 - 
 
 Profit/(loss) for the period                  7         (282,533)         (114,874) 
                                                  ----------------  ---------------- 
 
 Profit/(loss) for the period attributable 
 to: 
 Equity holders of the parent                            (281,815)         (113,222) 
 Non-controlling interest                                    (718)           (1,652) 
                                                  ----------------  ---------------- 
                                                         (282,533)         (114,874) 
                                                  ----------------  ---------------- 
 
 Profit/(loss) per share 
 Profit/(loss) per share - basic               3            (0.05)      (0.02) pence 
                                                             pence 
                                                  ----------------  ---------------- 
 Profit/(loss) per share - diluted             3            (0.05)      (0.02) pence 
                                                             pence 
                                                  ----------------  ---------------- 
 
 

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

Consolidated statement of comprehensive income

for the period ended 31 December 2018

 
                                                              6 months                   6 months 
                                                        to 31 December             to 31 December 
                                                                  2018                       2017 
                                                            Unaudited,                 Unaudited, 
                                                                   GBP                        GBP 
 
 
 Profit/(loss) for the period                                (282,533)                  (114,874) 
 Revaluation of available for sale 
  investments                                              (1,824,757)                  4,721,380 
 Unrealised foreign currency gain 
  arising upon retranslation of foreign 
  operations                                                    23,253                     13,536 
 Total comprehensive (loss)/profit 
  for the period                                           (2,084,037)                  4,620,042 
 
 
 Total comprehensive (loss)/income 
  for the period attributable to: 
 Equity holders of the parent                              (2,083,319)                  4,621,694 
 Non-controlling interest                                        (718)                    (1,652) 
                                                           (2,084,037)                  4,620,042 
 
 

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

Consolidated statement of changes in equity

for the period ended 31 December 2018

The movements in equity during the period were as follows:

 
                      Share              Share           Retained                         Other           Total                     Non-           Total 
                    capital            premium           earnings                      reserves    attributable              controlling          equity 
                                       account                                                        to owners                 interest 
                                                                                                         of the 
                                                                                                         Parent 
 Unaudited              GBP                GBP                GBP                           GBP             GBP                      GBP             GBP 
 
 As at 1 July 
  2017 
  (audited)       2,760,859         25,604,689       (21,022,232)                     4,855,879      12,199,195                 (16,453)      12,182,742 
 Changes in 
 equity 
 for 2017 
 Loss for the 
  period                  -                  -          (113,222)                             -       (113,222)                  (1,652)       (114,872) 
 Other 
  comprehensive 
  income for 
  the period              -                  -                  -                     4,734,916       4,734,916                        -       4,734,916 
                 ----------  -----------------  -----------------  ----------------------------  --------------  -----------------------  -------------- 
 Total 
  comprehensive 
  income/(loss) 
  for 
  the period              -                  -          (113,222)                     4,734,916       4,621,694                  (1,652)       4,620,042 
 Transfer 
  between 
  reserves 
  following 
  AFS 
  investments 
  disposal                -                  -           (45,630)                        45,630               -                        -               - 
 Transactions 
 with 
 owners 
 Issue of 
  shares              2,013            149,987                  -                             -         152,000                        -         152,000 
 Share issue 
  and 
  fundraising 
  costs                   -            (5,000)                  -                             -         (5,000)                        -         (5,000) 
 Share issue in 
  relation 
  to SIP                288             17,709                  -                             -          17,997                        -          17,997 
 Share-based 
  payment 
  transfer                -                  -                  -                         3,442           3,442                        -           3,442 
                 ----------  -----------------  -----------------  ----------------------------  --------------  -----------------------  -------------- 
 Total 
  Transactions 
  with owners         2,301            162,696                  -                         3,442         168,439                        -         168,439 
                 ----------  -----------------  -----------------  ----------------------------  --------------  -----------------------  -------------- 
 As at 31 
  December 
  2017 
  (unaudited)     2,763,160         25,767,385       (21,181,084)                     9,639,867      16,989,328                 (18,105)      16,971,223 
                 ----------  -----------------  -----------------  ----------------------------  --------------  -----------------------  -------------- 
 
 As at 30 June 
  2018 
  (audited)       2,766,857   26,016,000             (20,941,477)                     3,392,060      11,233,440                 (19,088)      11,214,352 
 Changes in 
 equity 
 for 2018 
 Loss for the 
  period                  -                  -          (281,815)                             -       (281,815)                    (718)       (282,533) 
 Other 
  comprehensive 
  income for 
  the period              -                  -                  -                   (1,801,504)     (1,801,504)                        -     (1,801,504) 
                 ----------  -----------------  -----------------  ----------------------------  --------------  -----------------------  -------------- 
 Total 
  comprehensive 
  income/(loss) 
  for 
  the period              -                  -          (281,815)                   (1,801,504)     (2,083,319)                    (718)     (2,084,037) 
 Transactions 
 with 
 owners 
 Issue of 
  shares              7,000            483,000                 -                   -                    490,000                  -               490,000 
 Total 
  Transactions 
  with owners         7,000            483,000                  -                             -         490,000                        -         490,000 
 As at 31 
  December 
  2018 
  (unaudited)     2,773,857         26,499,000       (21,223,292)                     1,590,556       9,640,121                 (19,806)       9,620,315 
                 ----------  -----------------  -----------------  ----------------------------  --------------  -----------------------  -------------- 
 
 
                                            FVTOCI        Foreign   Share-based         Total 
                                         financial       currency       payment         other 
                                            assets    translation       reserve      reserves 
                                           reserve        reserve 
 Unaudited                                     GBP            GBP           GBP           GBP 
 
 As at 30 June 2017 (audited)            4,516,849        178,160       160,870     4,855,879 
 Changes in equity for six months 
  ended 31 December 2017 
 Total comprehensive income for the 
  period                                 4,721,380         13,536             -     4,734,916 
 Transfer between reserves due to 
  AFS investments disposal                  45,630              -             -        45,630 
 Transactions with owners 
 Share-based payment transfer                    -              -         3,442         3,442 
                                      ------------  -------------  ------------  ------------ 
 As at 31 December 2017 (unaudited)      9,283,859        191,696       164,312     9,639,867 
                                      ------------  -------------  ------------  ------------ 
 
 As at 30 June 2018 (audited)            3,107,920        119,828       164,312     3,392,060 
 Changes in equity for six months 
  ended 31 December 2018 
 Total comprehensive income for the 
  period                               (1,824,757)         23,253             -   (1,801,504) 
 As at 31 December 2018 (unaudited)      1,283,163        143,081       164,312     1,590,556 
                                      ------------  -------------  ------------  ------------ 
 

Consolidated statement of cash flows for the period ended 31 December 2018

 
                                                      6 months          6 months 
                                                to 31 December    to 31 December 
                                                          2018              2017 
                                                    Unaudited,        Unaudited, 
                                                           GBP               GBP 
 Cash flows from operating activities 
 (Loss) before tax                                   (282,533)         (114,874) 
 (Increase)/decrease in receivables                  (231,998)            66,871 
 (Decrease)/increase in payables                       118,087           380,692 
 Share of losses in associates and                           8                 - 
  joint ventures 
 Finance income, net                                 (537,550)         (306,188) 
 Share-based payments                                        -             3,442 
 (Gain) on sale of AFS investments 
  before IFRS 9 adoption                                     -           (3,270) 
 Currency adjustments                                (106,199)            46,215 
 PPE write off/depreciation                                  -            15,600 
 Impairment of loans and receivables                   256,511                 - 
                                                                ---------------- 
 Net cash inflow/(outflow) from operations           (783,674)            88,488 
                                              ----------------  ---------------- 
 
 Cash flows from investing activities 
 Dividends received                                    498,936           221,737 
 Loans granted during the period                   (1,550,251)         (845,325) 
 Proceeds from sale of investments                           -            55,130 
 Payments for capitalised exploration                 (61,455)                 - 
  costs 
 Payments to acquire FVTOCI investments              (246,860)                 - 
                                                                ---------------- 
 Net cash (outflow)/inflow from investing 
  activities                                       (1,359,630)         (568,458) 
                                              ----------------  ---------------- 
 
 Cash flows from financing activities 
 Proceeds from issue of shares                               -            27,000 
 Interest paid                                        (83,399)         (194,301) 
 Proceeds from new borrowings                          325,000           967,000 
 Repayments of borrowings                            (290,000)       (1,103,604) 
                                              ----------------  ---------------- 
 Net cash (outflow)/inflow from financing 
  activities                                          (48,399)         (303,905) 
                                              ----------------  ---------------- 
 
 Net (decrease)/increase in cash and 
  cash equivalents                                 (2,191,703)         (783,876) 
 
 Cash and cash equivalents at the 
  beginning of period                                2,265,636           909,094 
 Exchange losses on cash and cash                     (46,874)                 - 
  equivalents 
                                              ----------------  ---------------- 
 Cash and cash equivalents at end 
  of period                                             27,059           125,218 
                                              ----------------  ---------------- 
 

Half-yearly report notes

for the period ended 31 December 2018

 
 1   Company and group 
 
 
   As at 31 December 2017, 30 June 2018 and 31 December 2018 
    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 
    2019. 
 
    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 2018 has been extracted from the 
    statutory accounts for the Group for that year. Statutory 
    accounts for the year ended 30 June 2018, 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 2018, which 
     have been prepared in accordance with IFRS. 
 
   During the period the following new standards were adopted. 
    The adoption of these standards has not had a material impact 
    on the financial information of the Group in future periods. 
 
   IFRS 9 "Financial Instruments" impact both the measurement 
    and disclosures of financial instruments. The group has 
    not retrospectively re-stated prior period. All investments 
    into equity instruments, that were held by the Group at 
    30 June 2018, which were included into Available for sale 
    financial assets line in the Statement of financial position 
    at 30 June 2018, are held by the Group with a long-term 
    view and are not held for trading. The Group has analysed 
    its investments into equity instruments on investment-by-investment 
    basis and took a decision to designate all of its Available 
    for sale investments held at the date of IFRS 9 adoption 
    as fair value through other comprehensive income financial 
    assets (FVTOCI). For equity instruments designated at FVTOCI 
    under IFRS 9, only dividend income will be recognised in 
    profit or loss, all other gains and losses will be recognised 
    in OCI without reclassification on derecognition. 
 
   IFRS 15 "Revenue from Contracts with Customers" - the Group 
    is pre-revenue hence the adoption had no impact on the reported 
    results or opening reserves. 
 

Half-yearly report notes

for the period ended 31 December 2018, continued

 
 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             6 months to 
                                                       31 December             31 December 
                                                              2018                    2017 
                                                        Unaudited,              Unaudited, 
                                                               GBP                     GBP 
 
  (Loss) attributable to equity 
   holders of the parent company                         (281,815)               (113,222) 
 
  Weighted average number of Ordinary 
  shares of GBP0.0001 in issue, 
  used for basic and diluted EPS                       535,699,971             479,745,008 
 
  (Loss) per share - basic and                        (0.05) pence            (0.02) pence 
   diluted 
 
 
       At 31 December 2018 and 31 December 2017, the effect of 
        all the instruments (fully vested and in the money) is anti-dilutive 
        as it would lead to a further reduction of loss per share, 
        therefore they were not included into the diluted loss per 
        share calculation. 
                                                          6 months             6 months to 
                                                                to             31 December 
                                                       31 December                    2017 
                                                              2018 
                                                        Unaudited,              Unaudited, 
                                                               GBP                     GBP 
 
       Share options granted to employees 
        - not vested and/or out of the 
        money                                           41,660,000              24,160,000 
       Number of warrants given to shareholders 
        as a part of placing equity instruments 
        - out of the money                             118,489,582              58,750,000 
                                                    --------------      ------------------ 
       Total number of contingently issuable 
        shares that could potentially 
        dilute basic earnings per share 
        in future                                      160,149,582              82,910,000 
                                                    --------------      ------------------ 
 
 
       Number of warrants - vested and 
        in the money at year end but not 
        included into diluted EPS calculation 
        due to their effect being anti-dilutive                  -             201,673,105 
       Number of potential ordinary shares 
        that would have to be issued if 
        all loan notes convertible at 
        the discretion of the noteholder 
        converted                                      131,538,908             126,103,143 
       Number of share options granted 
        to employees - vested and in the 
        money at year end but not included 
        into diluted EPS calculation due 
        to their effect being anti-dilutive              6,660,000              24,160,000 
                                                    --------------      ------------------ 
       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                                298,348,490             434,846,248 
                                                    --------------      ------------------ 
 
       There were no ordinary share transactions after 31 December 
        2018, that that could have changed the EPS calculations 
        significantly if those transactions had occurred before 
        the end of the reporting period. 
 
 

Half-yearly report notes

for the period ended 31 December 2018, continued

 
 4   Administrative expenses 
                                          6 months to    6 months to    6 months to 
                                          31 December    31 December    31 December 
                                                 2018           2017           2016 
                                            Unaudited      Unaudited      Unaudited 
                                                  GBP            GBP            GBP 
       Staff Costs: 
       Payroll                                109,707        126,692        105,525 
       Pension                                  7,733          7,711          5,858 
       Consultants                              7,500          7,500          7,500 
       HMRC / PAYE                             10,872         10,929         10,890 
       Professional Services: 
       Accounting                              20,628         23,112         54,187 
       Legal                                   10,558         10,806         22,874 
       Marketing                              (1,007)            511          9,310 
       Other                                    9,637          7,588          1,213 
       Regulatory Compliance                   33,496         19,114         36,033 
       Travel                                  16,547          6,632             80 
       Office and Admin: 
       General                                  9,111         23,669         11,815 
       IT related costs                         1,880          3,632         2,582. 
       Rent                                    29,782         45,553         27,794 
       Insurance                                2,385              - 
                                        -------------  ------------- 
       Total administrative expenses          268,829        293,449        295,661 
                                        -------------  ------------- 
 
 
 5   Project development and Other project 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. 
      Other Project Expenses include costs associated with current 
      and previous projects and include remediation and administration 
      expenses.                                   6 months to    6 months to    6 months to 
                                         31 December    31 December    31 December 
                                                2018           2017           2016 
                                           Unaudited      Unaudited      Unaudited 
                                                 GBP            GBP            GBP 
       Project development expenses 
        VUP (Congo)                          256,135         34,463 
       Galaxy (Congo)                         46,463              - 
       Total project development 
        expenses                             302,598         34,463 
                                       -------------  ------------- 
 
       Other project expenses 
       Mid Midori Mines (Kenya)               11,934              - 
       Greenland                              82,361         51,592        105,525 
       Others                                    649              - 
       Total other project expenses           94,944         51,592          7,500 
                                       -------------  ------------- 
 
 
     Half-yearly report notes 
      for the period ended 31 December 2018, continued 
 6   Finance income/(expenses), net 
                                             6 months to    6 months to    6 months to 
                                             31 December    31 December    31 December 
                                                    2018           2017           2016 
                                               Unaudited      Unaudited      Unaudited 
                                                     GBP            GBP            GBP 
       Interest income                           130,663        513,077 
       Dividend income                           498,936        221,737        105,525 
       Interest expense                         (92,049)      (428,626)          5,858 
       Total Finance income/(expenses), 
        net                                      537,550        306,188          7,500 
                                           -------------  ------------- 
 
 
 7   Segmental analysis 
 
 
                              Jupiter                                                          Corporate 
                                Mines           Other          Kenyan             DRC    and unallocated 
                              Limited     investments     exploration     exploration                          Total 
  For the six-month period 
   to 31 December 2018            GBP             GBP             GBP             GBP                GBP         GBP 
 
  Revenue 
  Total segment external            -               -               -               -                  -           - 
   revenue 
                            ---------  --------------  --------------  --------------  -----------------  ---------- 
 
  Result 
  Segment results             498,936               -        (17,293)       (305,704)          (497,251)   (321,312) 
                            ---------  --------------  --------------  --------------  -----------------  ---------- 
  Loss before tax and 
   finance costs                                                                                           (321,312) 
 
  Interest income                                                                                            130,664 
  Interest expense                                                                                          (91,885) 
  Loss before tax                                                                                          (282,533) 
 
  Tax                                                                                                              - 
                                                                                                          ---------- 
  Loss for the period                                                                                      (282,533) 
                                                                                                          ---------- 
 
 
                     Jupiter                                                                   Corporate 
                       Mines                  Other          Kenyan                DRC   and unallocated 
                     Limited            investments     exploration        exploration                         Total 
  For the 
  six-month 
  period 
  to 31 December 
  2017                   GBP                    GBP             GBP                GBP               GBP         GBP 
 
  Revenue 
  Total segment            -                      -               -                  -                 -           - 
  external 
  revenue 
                   ---------  ---------------------  --------------  -----------------  ----------------  ---------- 
 
  Result 
  Segment results    221,737                  3,270         (8,305)                  -         (469,870)   (253,168) 
                   ---------  ---------------------  --------------  -----------------  ----------------  ---------- 
  Loss before tax 
   and 
   finance costs                                                                                           (253,168) 
 
  Interest income                                                                                            566,920 
  Interest 
   expense                                                                                                 (428,626) 
  Loss before tax                                                                                          (114,874) 
 
  Tax                                                                                                              - 
                                                                                                          ---------- 
  Loss for the 
   period                                                                                                  (114,874) 
                                                                                                          ---------- 
 
 
   A measure of total assets and liabilities for each segment 
    is not readily available and so this information has not 
    been presented. 
 

Half-yearly report notes

for the period ended 31 December 2018, continued

 
 8    Financial instruments - Fair value through other 
       comprehensive income 
                                        31 December   31 December       30 June 
                                               2018          2017          2018 
                                          Unaudited     Unaudited       Audited 
                                                GBP           GBP           GBP 
  At the beginning of the period          4,705,386     6,080,146     6,080,146 
  Additions                                 246,860             -       287,236 
  Disposals                                       -     (281,601)   (1,599,714) 
  Change in fair value                  (1,824,757)     4,943,115      (62,282) 
  At the end of the period                3,127,489    10,741,660     4,705,386 
                                       ------------  ------------  ------------ 
 
 
 9    Share Capital of the company 
                                                         Number    Nominal, 
                                                                        GBP 
 
  Deferred shares of GBP0.0009 each               2,371,116,172   2,134,005 
  A deferred shares of GBP0.000096 each           6,033,861,125     579,251 
  Ordinary shares of GBP0.0001 each                 536,012,471      53,601 
                                                                 ---------- 
  As at 30 June 2018                                              2,766,857 
 
  Issued ordinary shares during the period           70,000,000       7,000 
                                                                 ---------- 
 
 
  Deferred shares of GBP0.0009 each               2,371,116,172   2,134,005 
  A deferred shares of GBP0.000096 each           6,033,861,125     579,251 
  Ordinary shares of GBP0.0001 each                 606,012,471      60,601 
                                                                 ---------- 
  As at 31 December 2018                                          2,773,857 
                                                                 ---------- 
 

Half-yearly report notes

for the period ended 31 December 2018, continued

 
 10                                    Short-term borrowings 
                                        31 December   31 December     30 June 
                                               2018          2017        2018 
                                          Unaudited     Unaudited     Audited 
                                                GBP           GBP         GBP 
  Loan from institutional investors               -     2,362,351   1,008,825 
  Convertible loan notes                  1,052,311     1,010,893           - 
  At the end of the period                1,052,311     3,373,244   1,008,825 
                                       ------------  ------------  ---------- 
 
 
 
 11   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. 
 
 
 
 
 

Half-yearly report notes

for the period ended 31 December 2018, continued

 
 12   Subsequent events 
 

Convertible Loan Note Issuance

On 2 January 2019 the Company announced a further update to the announcement of 2 November 2018 regarding the status of the Series 1 Convertible 10% Loan Notes, originally due for redemption on 19 December 2018, with the associated warrants due to expire on 30 April 2019.

It was announced on 2 November 2018 that holders of GBP575,000 principal value of Series 1 Notes, out of GBP950,000 of Series 1 Notes outstanding, had applied to renew their Notes for twelve months to a new redemption date of 19 December 2019 on the same terms, with the Warrants of renewing Noteholders similarly extended on the same terms by one year to expire on 30 April 2020.

As of 2 January 2019, a holder of a further GBP10,000 of Series 1 Notes elected to renew on the same terms, and subscriptions were received for GBP325,000 of Series 2 Convertible Notes to be issued on the same terms as the Series 1 Notes and to a maximum principal value of GBP500,000.

GBP585,000 of the Series 1 Notes and GBP325,000 of Series 2 Notes, for both of which the redemption date is now 19 December 2019, are therefore now outstanding.

Investment in African Battery Metals

On 30 January 2019 the Company announced the investment of GBP100,000 into African Battery Metals PLC (AIM:ABM) by subscription of 20,000,000 shares of ABM at a price of 0.5p. Additionally, the Company would receive 5,000,000 fee shares for its services in connection with the refinancing proposals, giving it a combined 6.89% stake in the business.

On 15 February 2019, African Battery Metals announced that at its General Meeting all resolutions were duly passed by its shareholders, and that 200,000,000 new shares would be issued, including those due to Red Rock Resources, and that that its shares would once again begin trading on AIM at 0730 on 18 February 2019.

Democratic Republic of Congo Exploration

Further to the announcement of 30 January 2019, the Company has concluded the first phase of work on the Musonoi license (Permis d'Exploitation no. 4962) that forms one of the assets of its Copper/Cobalt Joint Venture. Historic data including 83 old drillholes and nine cross sections on the property have been obtained from Gécamines and digitised, enabling the Company to recreate the historic orebody and open pit outline.

3-D models were then created, and the old high-grade upper orebody and lower orebody modelled, mineralisation calculated, and depletion from historic mining calculated. Models and tables for in situ mineralisation, both at the original Gécamines 2.5% copper cut-off grade and at a 1% cut-off grade, were then derived.

The information and calculations will now be given to external resource consultants to assess, with results from any core that the Company is able to identify and re-test. The consultants will then advise on any further work required for them to calculate a Resource compliant with the Joint Ore Reserve Committee (JORC) 2012 Code for calculating Mineral Resources and Reserves.

Jupiter Mines H2 2019 Dividend

On 12 February 2019 and on 19 February 2019 the Company announced the details of a planned dividend announced by Jupiter Mines Limited (ASX:JMS), a company in which Red Rock holds 18,524,914 shares, or approximately 0.95% of the business. Jupiter announced that it would pay an H2 2019 unfranked dividend of A$0.025 per share, and that the dividend record date would be 7 May 2019 with the dividend to be paid on 21 May 2019. This payment would constitute an FY 2019 yield of 24% with a total of A$147m paid out to shareholders during the year. Since listing Jupiter had exceeded its stated goal of a 70% payout policy from its operations of the Tshipi manganese asset in South Africa.

Based on Red Rock's shareholding in Jupiter, the Company expected to receive A$463k in May 2019.

For further information, please contact:

Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc

Scott Kaintz 0207 747 9990 Director Red Rock Resources Plc

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

Jason Robertson 0207 374 2212 Broker First Equity Limited

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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