Last checked at 29 Sep 2021 07:00
Red Rock Resources PLC
("Red Rock" or the "Company")
Investments Update
29 September 2021
Red Rock Resources Plc ("Red Rock" or "the Company"), the natural resource development company with interests in gold, copper, cobalt and other minerals, announces an update in relation to its investment in Jupiter Mines Ltd (ASX:JMS) ("Jupiter").
Over recent weeks Red Rock has disposed of a substantial part of its remaining holding in Jupiter through market sales at an average price of AUD 0.304 per Jupiter share, for proceeds of AUD 2,327,052.70 (approximately £1,239,489.34).
Red Rock retains 5,870,693 Jupiter shares. The current share price of Jupiter is AUD 0.225, which is 26% below the average price of Red Rock's recent sales.
Andrew Bell, Red Rock Chairman, states: "Our ability to raise over a short period a sum in excess of £1,000,000 from our share portfolio demonstrated the Company's ability to respond to events and to strengthen its liquidity from internal sources as required. We manage our investments actively and having formed the view that prospects in the near term for Jupiter had deteriorated, were able to reduce our holdings in amounts and at prices that did not appear to affect the price in the market.
Our history with this investment goes back a long way: shortly after listing in 2005 we sold iron ore assets to Jupiter in exchange for cash, shares and a royalty, and later increased our holding to become the largest Jupiter shareholder, bringing in Pallinghurst Partners as our partner and subsequently seeing the injection into Jupiter of the Pallinghurst manganese assets in South Africa, that now after the spin off of the iron ore into Juno Minerals Ltd (ASX:JNO) are the sole significant asset of Jupiter.
Jupiter has been an exceptionally well managed company, achieving over recent years an extraordinary near-30% annual return on assets, but the recent consolidation of shareholdings into fewer hands and the likelihood of management changes combined with a dull outlook for manganese prices convinced us that the time had come to accelerate the disposal of our stake.
Red Rock retains other listed holdings, or holdings in companies approaching listing, in businesses where it has played a strategic role, including 45,000,000 shares valued in the market at over £900,000 in Power Metal Resources PLC (AIM:POW).
Further announcements will be made in relation to these in due course."
For further information, please contact:
Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 020 7374 2212 Broker First Equity Limited