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(Alliance News) - Red Rock Resources PLC on Tuesday said it swung to loss in its most recently ended financial year on higher costs and the non-repeat of investment gains.
The stock was 14% lower in the morning trading at 0.37 pence a share.
The AIM-listed iron ore company said it swung to a pretax loss of GBP1.7 million in the year to the end of June compared to GBP78,120 profit it generated a year earlier, as impairment charges surged to GBP1.6 million from just GBP217,226.
In financial 2018, the company also had secured a GBP1.2 million gain on sales of investments.
During the year the company said it continued to work to confirm the status of its licenses in Kenya. In the Democratic Republic of Congo, meanwhile, Red Rock's exploration at Luanshimba copper-cobalt license took place, identifying "significant" anomalies. The company said it expects to carry out further work at Luanshimba early in 2020.
Less positively, a minority investment in Botswana diamond explorer Amulet Diamond Corp failed to bear fruit, Red Rock said, as the decline in the price of run-of-mine diamonds meant that production would not support the economics of the project.
Looking ahead, Chair & Chief Executive Andrew Bell said: "After a year governed by macro-economic and political factors, the company should benefit in the coming period from an improving climate on these fronts. Greater certainty, and a new spirit of optimism, may amplify these effects in London markets."
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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