Red Rock Resources (31)
Welcome to the MiningMaven page dedicated to Red Rock Resources. From this page you will be able to see all Red Rock Resources articles written by MiningMaven and navigate to related pages of interest on other websites.
Red Rock Resources Plc is a mineral exploration company focused on the discovery and development of gold, uranium and other minerals. The Company through its sale of assets to Jupiter Mines Ltd on the ASX, of which it remains a significant shareholder, is also committed to the pursuit through Jupiter of an active 'steel feed' strategy for consolidating large scale interests in iron ore, manganese, and prospectively coal.
Red Rock in pursuit of its goals follows varying strategies, operating through exploration for, and exploiting of, mineral deposits; through the acquisition and disposal of interests in actual or potential mineral deposits or companies holding them in exchange for cash, securities, or royalty and other deferred interests; through buy-in agreements and joint ventures with such companies; and through public offerings of securities in subsidiary or associate companies. Red Rock Resources (AIM: RRR) listed on London’s AIM market in July 2005.
The principal operational focus of the Company in 2010 is its gold assets in Kenya and gold investments in Colombia & Costa Rica
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Red Rock Resources: Podcast Interview with Chairman Andrew Bell
Written by MiningMaven
Red Rock Resources – Value Review. Right Now + Looking Ahead
Written by MiningMaven
One stock we are currently waiting on is Red Rock Resources (AIM:RRR). We hold the shares here and we have been adding to our position as the price continues to fall.
There are some legacy issues to note here; perhaps they could be summed up as “previous performance expectations”. This is not a fundamental value issue, but it is currently hanging over the share price and dampening investor sentiment. As value investors we are focusing on the value staring us in the face, so we will happily discount all the prevailing sentiment issues and wait for the mood to change. It usually does.
Red Rock Resources: A few things you may not realise……
Written by MiningMaven
There is a phrase that has appeared many times on discussion sites in recent months indicating that the darkest of night is just before dawn. The aim, clearly, is to indicate that, despite the market turmoil, a brighter phase - that of recovery - is getting closer.
Of course, having heart in times of market sentiment lows and falling prices is a hard skill to muster, for most of us anyway. At such times we are more prone to adopting a negative slant on life’s events, especially when it comes to our investments. Perhaps we lack a little of the spirit of Wilkins Micawber, from Charles Dickens’ David Copperfield. Micawber always held to the principle that “something will turn up”, living in hopeful expectation that life’s financial and other crises will be resolved eventually.
A much lofted phrase, but we certainly are in ‘difficult times’ when it comes to small cap mining and exploration shares. In fact times are so difficult that the usual market responsibility of valuing a company in line with current assets, combined with a reflection of future potential has gone completely out of the window.
In times when certain market commentators seek to bemoan conditions and demonstrably worry about the future, we are scouring the market to identify value opportunities that the markets may, in their dubious wisdom, have battered to the floor – valuation wise – with unreasonable efficacy. This task is illuminating for sure, and strong hearted investors are likely to do very well buying shares in this trough, but it is also somewhat demoralising to see companies languishing on the floor when we know the hidden value that lies beneath. So, it is particularly heartening when one of the companies we follow closely actually demonstrates to market the value it is creating and helps enliven our spirits with a taster of what may be delivered in the future.
The case in point here being Red Rock Resources (LON:RRR) who today released their annual report to 30 June 2011 noting profit approaching £14million for the year (1.78p earnings per share). Not bad for a company with a market capitalisation at 4p of around £30million and with a diverse portfolio capable of delivering, in our opinion, significant upside in the near term.
Of course market sentiment being what it is, we await the siren call of those bemoaning the impending tax liability due on such a prodigious gain. But sadly for the naysayers, as the lion’s share of the gain relates to the accounting for Red Rocks substantial holding in Jupiter Mines (ASX:JMS), and not technically a crystallised gain, deferred tax largely applies. Further details of this tax deferral are outlined in Note 17 to the annual report.
We live in an impatient investing world, where there is little tolerance for medium term business development where challenging operational progression necessarily replaces instantaneous success. But as Rome was not built in a day, large listed corporations must be nurtured from small beginnings. Whilst many companies are adept at spinning the benefits of their operations one fact about Red Rock remains simple: From early exploration activities, and very little initial value, the company was able to vend iron ore and manganese assets into Jupiter Mines securing shares worth today, even after initial disposals and the retrenchment in Jupiter’s market capitalisation, in excess of £16million pounds.
We watch with interest to identify where the next leap in value will develop.
To download our latest Value Proposition Report
on Red Rock Resources click here
Disclosure: The Authors hold shares in Red Rock Resources
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All figures quoted have been obtained from the respective Company websites with links provided where available. Errors & omissions excepted.
This summary represents the views and opinions of MiningMaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation to buy shares in the company. All opinions expressed are those of the author/s and unless otherwise stated, should not be construed as being made on behalf of any featured Company. From time to time MiningMaven principals may take equity positions in companies. Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.
Users may print extracts of content from the MiningMaven for their own personal and non-commercial use only. Republication or redistribution of MiningMaven content is expressly prohibited without the prior written consent of MiningMaven. However, linking directly to the MiningMaven website is permitted and encouraged. All rights reserved. All Logos and Trademarks displayed are the property of the respective trademark owners.
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Red Rock Resources – Proven Explorers, Expanding Producers
Written by MiningMaven
Special Report November 2011
Red Rock Resources – Proven explorers, expanding producers
Benjamin Franklin once said “without continual growth and progress, such words as improvement, achievement and success have no meaning”. So if you like to see your growth and progress set at an aggressive pace, then Red Rock Resources is certainly a company you should consider.
Red Rock Resources: September Q&A with Andrew Bell
Written by MiningMaven
Red Rock Resources (LON:RRR) After a series of updates on developments covering operations in Kenya, Colombia and Greenland, we took the opportunity to put some investor focused questions to Chairman Andrew Bell. We hope you will find his answers as informative and insightful as we did!
“Different things delight different people. But it is my delight to keep the ruling faculty sound without turning away either from any man or from any of the things which happen to men, but looking at and receiving all with welcome eyes and using everything according to its value.”
This is a quote from some time ago, and we will reveal the identity of the writer later. But in our view it sums up the management philosophy in place right now at Red Rock Resources (LON:RRR).
Red Rock Resources: In depth interview with Andrew Bell
Written by MiningMaven
As readers will know, MiningMaven has been following the Red Rock Resources story since 2009. Over that time we have witnessed an extraordinary scale of business development, through organic growth, acquisitions and investments. Reflecting that growth, we have also seen the share price climb from around 1.5p, up to 20p (intraday) and then retrace back to where it is today, around 7p per share. Quite a ride!
As investors ourselves, we know to expect pullbacks, especially when a share has undergone such a dramatic growth and rerating exercise. We also recognise that as a retracement runs its course, the price also tends to overshoot in the opposite direction.
Red Rock Resources: Iron Ore in Greenland, Louis Vuitton & Walmart!
Written by MiningMaven
Red Rock Resources (LON:RRR) announced on 3rd March that the company had a sign an agreement with North Atlantic Mining Associates Limited ("NAMA") for a two month option to enter into an earn-in with NAMA over exploration concessions at Thule, Greenland.
Iron Ore, has seen its prices rise substantially in recent years to levels of around $180 per tonne and recent transactions, such as Mittal's Baffinland acquisition, will only reinforce its appeal.
But given the Company's current gold focus and its accelerated developments in precious metals, both operationally and through its investment portfolio, this move back into Iron Ore came as somewhat of a surprise to many investors who, like us were keen to learn more of the rationale behind this move.
Red Rock Resources: Update Q&A with Andrew Bell
Written by MiningMaven
Red Rock Resources updated the market on Tuesday with news on progress across their operations and investments. Executive Chairman Andrew Bell took the time to answer some investor focused questions for MiningMaven. Here’s what he had to say:
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This summary represents the views and opinions of MiningMaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed are those of the author and unless otherwise stated, should not be construed as being made on behalf of any featured Company. From time to time MiningMaven principals may or may not take an equity position in the said companies. Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.
Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of MiningMaven content is expressly prohibited without the prior written consent of MiningMaven. However, linking directly to the MiningMaven blog is permitted and encouraged. All rights reserved. All Logos and Trademarks displayed on this site are the property of the respective trademark owners.
Copyright © MiningMaven 2012
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