(Alliance News) - Red Rock Resources PLC on Thursday posted a swing to profit in its most recently-ended financial year on a reversal of previously-impaired financial assets.
The stock was trading 3.6% higher at 1.14 pence each on Thursday morning in London.
For its financial year ended June 30, the Kenya and Australia-focused gold explorer which also has copper-cobalt projects in the Congo posted a pretax profit of GBP5.2 million, swinging from a loss of GBP1.7 million the year prior.
The profit reflected a reduction in impairments to GBP250,000 from GBP1.6 million as well as the write-back of a GBP5.3 million impairment from June 2015 against assets in Kenya.
Administrative expenses were slightly higher at GBP597,000 from GBP592,000 the year before.
Looking ahead, Red Rock said that despite an uncertain outlook, it believes its portfolio of gold, copper/cobalt projects makes it well-positioned for the future.
"The forecast for copper demand is for 2% growth per annum. he arguments for gold as a store of value are well rehearsed, and the apparent switch from a strong to a weak dollar, combined with money creation in the world's major economies, create conditions in which gold looks at worst a defensive investment, and may at best be a very good one in 2021 and 2022. Red Rock has a balance of gold, copper/cobalt, and manganese exposure that plays into the trends we see developing, Chair & Chief Executive Andrew Bell said.
"We plan an active 2021, building on the years of preparation we have undertaken with dynamic exploration programmes and active engagement with potential partners," he added.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Red Rock Resources (RRR)