Red Rock Resources - results. Value potential says HotStockRockets...

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Red Rock Resources (RRR) announced results for its year ended 30^th June 2021 in the ‘no-one-watching-week’ between Christmas and the new year. The shares have though responded up. They are still though down from above 0.60p as recently as November despite the company arguing progress, whilst also that “had it not been for the continuance of the travel and work restrictions imposed by various countries in response to the Covid-19 pandemic of early 2020, those advances would have been greater and faster… we expect investors to be materially rewarded for their support over the course of 2022”. It’s certainly time!

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Boss Andrew Bell notes “ended the June 2021 financial year with our cash supplemented by £1,581,000 in marketable investments and a holding in Elephant Oil, where we expect a listing in the New Year, held at a value of £173,846 but likely to be traded at a much higher valuation once listed”. However, the balance sheet also showed borrowings of £1.7 million and other liabilities of £1.2 million against other current assets of £1 million, whilst administrative expenses were up to £0.7 million.

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It adds Elephant Oil has just filed with NASDAQ as part of final preparations for listing, that progress continues towards a listing for its Australia joint venture gold assets in the new year and that it expects early grant of some licences in Côte d'Ivoire and Burkina Faso as it also progresses towards a listing process for those. We’ve previously noted argued Australia joint venture interest to deliver a highly significant value compared to the market cap here and the company now emphasises there “a strategic position that only a few weeks later would have already become impossible”. A 2,000 metre drilling campaign there began on 13^th December and there are also upcoming laboratory results from Congo and Kenya.

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All of that looks to create good potential from a below £6 million market cap but that has looked the case before and Andrew Bell was initially supposed to have delivered some of the noted listings by now. For now, the value potential sees this still a Buy but Bell remains in the last chance saloon.

This article first appeared on HotStockRockets - to catch the next red hot share tip from the HotStockRockets team for just £5.50 click HERE

Filed under: Red Rock Resources, Theranos, Wildcat Petroleum, Bacanora, Trackwise Designs

2022-01-05 16:08:52

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