Red Rock Resources’ (LON:RRR) management is backing its deal making track record to outweigh the effects of declining iron ore and gold prices.
The company’s full-year results revealed a sharply reduced loss before tax of £3.77mln, compared to a loss in the year to 30 June 2013 of £19.14mln.
It was not a year that saw a lot of exploration activity by the mining development company, with management focused instead on maximising value from existing assets.
Costs were reduced across the board while the parent company’s borrowings were cut back to £2.6mln from £1.1mln a year earlier.
“Resource Star, Jupiter, as well as our related companies Regency Mines, Ram Resources and Alba Mineral Resources, have all seen sharp price recoveries as a result (in every case but that of Jupiter) of initiatives in which our management team were prime movers,” noted Andrew Bell, chairman and chief executive of Red Rock.
“Declining iron ore and gold prices have made it more difficult to progress but we now look to the future with greater confidence, as Chinese growth picks up and gold is so near marginal production cost that prices are likely to increase substantially over the medium term. The process of reconstruction and recovery will extend to Red Rock in the months ahead, and we trust that shareholders will draw encouragement from seeing the progress at these other companies as well as that at Red Rock,” Bell said.
In a separate announcement, the company said its sale of its Colombian gold assets is going ahead with some changes to payment timings.
Red Rock said payment of the unchanged consideration of US$5mln will now occur in four tranches - the first of US$1.05mln is expected to be on or before December 15.