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Red Rock Resources substantially widens FY loss

By BFN News | 10:01 AM | Thursday 12 November, 2015


Red Rock Resources has posted a considerably wider FY pretax loss from continuing operations of GBP7.7m, from a prior-year loss of GBP3.8m. This included a GB5.3m impairment of an amount due from associates. It did not recommend a dividend. "The year ended 30 June 2015 was frustrating for all of us. It contained a period of great difficulty for the entire exploration and mining sector, when in a short period from late 2014 most commodity metals saw substantial price declines, in many cases of 30% to 50%," the company said in a statement. "Forecasts for commodity demand had been heavily dependent on assumptions of a continuance of previous Chinese industrial growth and capital investment trends, and when these assumptions had to be revised, the vulnerability of the sector became apparent. "Once the supply/demand balance was adjusted, there was little to hold prices above their long term trend rates, from which they had risen so sharply since 2003. "It cannot be certain that these falls are over, and only gold, which follows its own path and only sometimes behaves as a metal, remains a relatively safe haven in a mineral sector that is painfully adjusting its cost and break-even assumptions." At 10:01am: (LON:RRR) Red Rock Resources PLC share price was -0p at 0.02p Story provided by StockMarketWire.com

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