Half Yearly Report

RNS Number : 7962P

Red Rock Resources plc

31 March 2009

 

Rock Resources plc

Half-yearly report - six months ended 31 December 2008

Dated: 31 March 2009

Red Rock Resources plc ('Red Rock' or the 'Company') the mineral exploration and development company focused on advancing iron ore, uranium and manganese projects in Australia and East Africa, announces its unaudited half-yearly results for the six months ended 31 December 2008.

Chairman's statement

I am pleased to present to shareholders your Company's half yearly report for the period to 31 December 2008. The report will update Shareholders and significant developments will continue to be disclosed as they occur.

The Company made a pre-tax loss of £1,958,017 for the period (2007 loss of £195,628) due primarily to a loss on revaluation of listed securities of £1,480,788 and no dividend has been paid or proposed. The most significant element in the revaluation loss was a £1,621,099 decline in the value of the Company's holding of 14.94m shares in Australian Stock Exchange-listed Jupiter Mines Ltd ('Jupiter'), which ended the period quoted at 6c per share. The current price has recovered to 10c.

Since the end of the period covered by the half yearly results, the proposals by the Pallinghurst Resources and Red Rock joint venture have been put to Jupiter shareholders at an Extraordinary General Meeting held on 9th March. They were passed unanimously on a show of hands, and under phase 1 of the proposals, which has now completed, Red Rock has been issued with 23,839,183 new Jupiter shares. Our shareholding now consists of 38,948,586 Jupiter shares (16.2% of issued capital) and the shareholding of our partner Pallinghurst Steel Feed (Dutch) BV ('Pallinghurst') amounts to 66,054,148 Jupiter shares (27.48% of issued capital). On conclusion of phase 2 of the proposals, which occurs when we are able to transfer our Oakover manganese tenements, a further increase in the Red Rock shareholding in Jupiter would occur, which would have the effect of approximately equalising ours and Pallinghurst's shareholdings in Jupiter. Significant board and other changes have occurred at Jupiter since 9th March, and we look to the future with confidence.

Also since the end of the period, Red Rock has raised £224,675 before expenses by the issue of 23,650,000 new shares at a price of 0.95p. We saw the willingness of investors to invest in Red Rock as a vote of confidence by the market, at a time when there are concerns about the continuing viability of many small companies. We wish to be in a position to take advantage of opportunities that we expect to arise, and were pleased to accept the offer of a modest amount of funding.

Andrew Bell

Executive Chairman

31 March 2009

Income statement

		Group  6 months to  31 December 2008	Company  6 months to  31 December 2007 as adjusted	Group  Year to  30 June  2008
		Unaudited £	Unaudited £	Audited £
Revenue Sales of investments Cost of sales Management services		64,869 (107,557) 630	- - 3,133	1,322,735 (1,025,884) 24,393
Gross profit Exploration expenses		(42,058) (159,099)	3,133 (84,970)	321,244 (167,711)
Administrative expenses Currency (loss)/gain		(217,120) (319)	(190,861 (417)	(402,389) 74,521
Operating (loss)		(418,596)	(273,115)	(174,335)
Share of operating loss in associates (Deficit)/surplus on revaluation of trade investments (Loss)/profit on sale of trade investments Profit on sale of subsidiary Loss on revaluation of associate company investment Interest receivable Interest payable		(55,433) (1,480,788) - - - 1,513 (4,713)	(15,164) 175,369 (49,375) - (42,260) 12,177 (3,260)	(82,556) 384,100 - 89,912 (126,780) 19,308 (5,933)
(Loss)/profit on ordinary activities before taxation		(1,958,017)	(195,628)	103,716
Loss after taxation		(1,958,017)	(195,628)	103,716
(Loss)/profit per share - see note 3 Basic		(0.56) pence	(0.10) pence	0.04 pence

Statement of recognised income and expense

		Group 6 months to  31 December 2008	Company 6 months to  31 December 2007 as adjusted	Group Year to  30 June  2008
		Unaudited £	Unaudited £	Audited £
Deficiency on revaluation of associated company investments		-	(84,520)	-
Loss for the financial period		(1,958,017)	(195,628)	103,716
Total recognised (loss)/profit for the financial period		(1,958,017)	(280,148)	103,716

Balance sheet

		Group 31 December 2008	Company 31 December 2007 as adjusted	Group  30 June  2008
		Unaudited £	Unaudited £	Audited £
Assets
Current assets Cash and cash equivalents Trade and other receivables Investments in associates Available for sale financial assets Exploration properties		20,078 410,413 903,401 820,913 636,372	644,379 439,645 517,594 1,115,568 485,245	87,599 394,198 958,835 2,335,925 567,905
Total current assets		2,791,177	3,202,431	4,364,462
Total assets		2,791,177	3,202,431	4,364,462
Current liabilities Trade and other payables		(161,427)	(258,349)	(413,295)
Total liabilities		(161,427)	(258,349)	(413,295)
Net assets		2,629,750	2,944,082	3,951,167

Equity Called up share capital Share premium account Share based payment reserve Revaluation reserve Retained losses		405,481 4,425,336 82,581 - (2,283,648)	256,481 3,143,236 82,581 (84,520) (453,696)	305,481 3,888,736 82,581 - (325,631)
Total equity		2,629,750	2,944,082	3,951,167

Cash flow statement

		Group 6 months to  31 December 2008	Company 6 months to  31 December 2007 as adjusted	Group Year to  30 June  2008
		Unaudited £	Unaudited £	Audited £
Cash flows from operating activities
Operating loss (Increase)/decrease in receivables (Decrease)/increase in payables Exploration property costs Impairment of exploration properties Proceeds from disposal of subsidiary Payments to acquire associate company investments Payments to acquire available for sale investments Cost of available for sale investments disposed of Costs of exploration properties disposed of Currency adjustments		(418,596) (16,215) (251,868) (147,665) 79,198 - - (53,333) 107,557 - -	(273,115) (224,632) (35,259) (67,815) 26,401 632,400 (633,900) (353,739) - - (7,733)	(174,335) 685,815 119,686 (112,485) 11,034 602,045 (1,142,533) (2,411,251) 1,025,885 - -
Cash (outflow) generated from operations		(700,922)	(037,392)	(1,428,131)
Cash outflows from investing activities Interest received Interest paid		1,513 (4,712)	12,177 (3,260)	19,309 (5,933)
Net cash flows used in investing activities		(3,199)	8,917	13,376
Acquisitions and disposals Cash disposed of on sale of subsidiary		-	(11,243)	(11,243)
Net cash flow from acquisitions and disposals		-	(11,243)	(11,243)
Cash inflows from financing activities Proceeds from issue of shares Transaction costs of issue of shares Share subscription monies		660,000 (23,400) -	525,000 (26,250) 865,000	1,350,000 (56,750) -
Net cash flows from financing activities		636,600	1,363,750	1,293,250
Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of period		(67,521) 87,599	424,032 220,347	(132,748) 220,347
Cash and cash equivalents at end of period		20,078	644,379	87,599

Consolidated statement of changes in equity

For the period ended 31 December 2008

	Share capital	Share premium	Retained earnings	Share option reserve	Total equity
	£	£	£	£	£
At 30 June 2007	235,481	2,665,486	(429,347)	82,581	2,554,201
Profit for the year Issue of shares Share issue expenses	- 70,000 -	- 1,280,000 (56,750)	103,716 - -	- - -	103,716 1,350,000 (56,750)
At 30 June 2008	305,481	3,888,736	(325,631)	82,581	3,951,167
Loss for the period Issue of shares Share issue expenses	- 100,000 -	- 560,000 (23,400)	(1,958,017) - -	- - -	(1,958,017 660,000 (23,400)
At 31 December 2008	405,481	4,425,336	(2,283,648)	82,581	2,629,750

Half-yearly report notes

       1.    Company and Group

As at 31 December 2007, the Company had no operating subsidiaries and therefore did not prepare Group financial statements for the six month period. As at 30 June 2008 and 31 December 2008 the Company had one or more operating subsidiaries.

The Company will report again for the year ending 30 June 2009.

2.    Accounting policies

Accounting policies adopted under IFRS

These interim financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ('IFRS').  

The Company's transition date to IFRS was 1 July 2006. Accordingly, IFRS was first implemented for the six month period ended 31 December 2007 and for the year ended 30 June 2008.

Statement of compliance

This consolidated financial information of Red Rock Resources plc is prepared in accordance with IFRS as adopted by the European Union with the exception of IAS 34 'Interim Financial Reporting'.

Basis of preparation

The consolidated financial information has been prepared in accordance with accounting policies adopted in presenting the annual report and financial statements for the full year ended 30 June 2008 and subsequent years ie in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

3.    Loss per share

		6 months to  31 December 2006	6 months to  31 December 2007 as adjusted	Year to  30 June  2008
		Unaudited £	Unaudited £	Audited £
These have been calculated on a (loss)/profit of:		(1,958,017)	(248,239)	103,716
The weighted average number of shares in issue was:		349,763,442	240,046,050	261,191,216
Basic loss per share:		(0.56) pence	(0.10) pence	0.04 pence

    4.    Market values of investments

As at 31 December 2008, the market values of publicly quoted investments were as follows:

• Trade investments: £753,067 (book value £753,067)

Copies of this half-yearly report are available free of charge by application in writing to the Company Secretary at the Company's business office, 115 Eastbourne Mews, Paddington, London W2 6LQ, or by email to office[at]rrrplc.com.

Enquiries:

Andrew Bell	0207 402 4580 or 07766 474849	Red Rock Resources plc	Chairman
John Simpson /  Ben Jeynes	020 7489 4500	Blomfield Corporate Finance Ltd	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker
Ron Marshman /  John Greenhalgh	020 7011 9411	Lothbury Financial Limited	Public Relations

Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.

 

END

 

 

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