Rns26 Mar 2018 09:45
26/03/18 07:19:40
News Alert for Red Rock Resources ORD 0.1P.
RNS Number : 8372I
Red Rock Resources plc
26 March 2018
26 March 2018
Red Rock Resources plc
Unaudited half-yearly results for the six months ended
31 December 2017
Red Rock Resources plc ("Red Rock" or "the Company"), the natural resource investment and development company with interests in manganese, gold, ferrosilicon, and other materials, announces its half-yearly results for the six months ended 31 December 2017.
Chairman's Statement
In the six-month period ending 31 December 2017 the loss before tax from continuing operations was �114,874 compared with a profit of �147,662 in the comparable period of the previous year. This was primarily as a result of the reversal into losses of the foreign exchange gains made on dollar items in that year, that had resulted from the significant decline in sterling in late 2016.
Loss before tax from continuing operations for the full year ended 30 June 2017 was �1,114,213 reflecting a total impairment of the Company's investment in Greenland exploration. Revenues in the current half year are encouraging, and provided there are no further impairment provisions, we expect to report a full year profit for the year ending 30 June 2018, for the first time since 2011. When these matters are reviewed for the full year audit, the status of our projects will be considered, and the possibility of writing back some previous impairments as well as of any need for further impairments will be considered.
The consolidated statement of financial position at 31 December 2017 shows an increase in total assets of 31.1%. to �22,278,471 from the level at 30 June 2017. Total equity shows an increase of 39.3% from the 30 June 2017 level to �16,971,223 at 31 December 2017, reflecting our setting a valuation on our holding in Steelmin Limited..
These improving revenue and balance sheet trends look likely to continue up to, and beyond, the financial year end in June.
This underlying pattern of incremental improvement, that has been mentioned in the last few annual and interim reports, is the first matter to which we would draw attention. The second is that the balance sheet as presented in the interims has already been superseded, almost to the point of irrelevance. It was a 'pre-Steelmin' balance sheet, and we are now in a 'post-Steelmin' era at Red Rock.
On 21 February 2018 Red Rock announced that, after eight months, the Steelmin loan of �4,314,688.68 had been repaid and that, after repayment by Red Rock of $3,000,899 to the funders of the back to back arrangement, Red Rock was left with a cash balance from the loan repayment amounting to �976,525.46 and US$912,457.90. Some of this represented interest income in excess of interest paid, and some a realised gain from a currency exposure that the Company had consciously left unhedge
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