Red Rock Resources in 'stretched' financial position as losses widen

(Sharecast News) - Red Rock Resources reported a wider first-half loss and highlighted a stretched financial position on Wednesday, as it awaits progress on asset sales and developments in the Democratic Republic of Congo to support liquidity. The AIM-traded natural resources investor posted a loss of £1.73m for the six months ended 31 December, compared with a loss of £1.55m a year earlier, while total assets declined to £16.9m from £17.7m at the end of June.

Cash and cash equivalents stood at £223,000, up from £18,000 at the prior year-end, supported by proceeds from investing and financing activities.

Chairman Andrew Bell said the company continued to advance its portfolio during the period, including work on renewing gold licences in Kenya and site visits to the DRC.

He noted progress in a social housing joint venture linked to the group's mining plans, with the first project having completed the tender process and moving towards implementation. Bell said the initial contract implied a scale of housebuilding capacity that "would by unit numbers place the contractor among the top four housing providers if it was in the UK."

In the DRC, the company was awaiting a Supreme Court judgment in relation to a long-running arbitration concerning the unauthorised sale of a key asset.

Bell said the ruling had been repeatedly expected but delayed, adding that "it remains the case currently that a publication of the judgment is expected," with funds held by the state mining company ready for distribution once a decision is issued.

In Kenya, Red Rock said it had reached an indicative agreement on licence renewals, subject to final approvals, while it continued to review additional opportunities across its portfolio.

The company also noted ongoing efforts to monetise assets in Ivory Coast and Australia, including an extension agreed for a final payment to acquire minority interests in its Australian gold assets.

Investee company Elephant Oil was in discussions with potential new investors, which the group said could enhance the value of its holding.

Bell said the group's financial position "remains stretched while waiting for these developments," with management expecting asset sales and progress in the DRC to provide support.

At 1027 BST, shares in Red Rock Resources were down 7.11% at 0.02p.

Reporting by Josh White for Sharecast.com.

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