The miner said progress continues with the planned flotation of subsidiary Pty Ltd, and it expects it to give a valuation uplift significant in relation to its market value.
Liquidity is forecast to increase in the second half of the year, advancing towards a medium-term target of £20m for cash and liquid investments.
“If we want to advance to become a mid-tier mineral exploration and production company, we need from here to give increasing importance to building and maintaining a high level of liquidity. We are in a better position to do so than we have ever been,” said chairman Andrew Bell in a release.
“Our exploration activities in the period ahead will be as important as our IPOs and capital market transactions,” he added.
In the DRC the firm is preparing to drill some short reverse circulation holes at the Luanshimba copper-cobalt prospect, once the geophysics is complete and the ground conditions permit, with the aim of delineating a resource.
In Kenya it is finalising a drill programme to follow up the JORC Resource recently announced and to test new targets, while it has started active exploration in Australia.
“At the time of writing, the value of our marketable securities and cash is near £4m,” said Bell.
“It has been higher recently, and with the receipt of anticipated dividends from Jupiter Mines Ltd, an in specie share distribution and IPO of Juno Minerals Ltd, and the dynamism of plc with its diverse portfolio, we consider it reasonable to aim to bring that figure to a level somewhat higher by our June year-end.”
“In addition, we welcome the news that our 4.6% shareholding in Elephant Oil Ltd may finally realise its potential with a market listing, and if the hopes raised by the passive seismic carried out two years ago over the 4,000 square kilometres held onshore in Benin are to any degree fulfilled this may become a significant asset for us.”
The unaudited results for the six months to 31 December 2020 showed modest improvement on all fronts, Bell noted.
Total Equity increased by 20.4% over the six months to £16.659m, after a 53.7% increase over the previous six months.
Current and non-current assets together increased by £2.3mln over the six months, while liabilities decreased by £530,000 and have seen a further £1.4m reduction by payments made to Kansai Mining since December.
The loss for the six months was £430,000, compared with a profit of £337,000 in the same period of the previous year, reflected an increase in administration costs, including employment costs, partly as a result of the high level of activity at Red Rock Australasia Pty Ltd as it increased its land holdings and prepared for exploration and listing.
A reduction in dividends from Jupiter Mining Ltd, as Tshipi e Ntle took a more cautious view of distributions at the height of the Covid uncertainty, was also a factor.
Shares added 1% to 1.01p on Tuesday afternoon.
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