LONDON (Alliance News) - Red Rock Resources PLC on Friday said it is set to receive a GBP508,000 dividend from an investee, while another investee has restarted daily production.
Jupiter Mines, in which Red Rock has a stake just below 1%, will pay the firm a GBP508,000 dividend, after it reported a 13% rise in net profit after tax for its second quarter ended August 31.
In Colombia, Para Resources Inc has started mining again from El Limon with daily production at 45 tonnes per day of ore, ramping up to 70 tonnes. Red Rock has a 3% royalty on production up to USD2 million, and a further 0.5% royalty up to USD1 million of production.
At its Steelmin Ltd plant in Bosnia, in which it has a 22% stake, production is back up and running. while in the Congo it said the Lulu asset can "no longer be relied upon".
Chairman Andrew Bell said: "We continue to see progress on most fronts. The Jupiter interim dividend of about GBP508,000 will be received shortly, and Para is at last moving to a production level that should give us a significant flow of royalty payments.
"There is a broad consensus among the parties on how to move forward in Kenya, which could open up opportunities, and the steady and persistent work we have put into getting to know the Congo may still generate opportunities."
He concluded: "Red Rock has some potential upside but almost no downside at Steelmin, where it remains the largest shareholder, and will as in the past seek outcomes that maximise our result while minimising any additional risk.
"In other parts of its business, the company continues to perform in line with expectations, and retains a good level of liquidity."
Shares were 14% lower on Friday at 0.67 pence each.
Red Rock Resources (RRR)