Red Rock Resources (RRR) AI Stock Analysis

• Market Cap: £1.86M
• Dividend Yield: N/A
• Average Volume (3M): 29.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: N/A
• EPS Growth: 46.15%
• Country: UK
• Employees: 10
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 7,154,032,000
• 10 Day Avg. Volume: 35,643,459
• 30 Day Avg. Volume: 29,711,985
• PEG Ratio: <0.01
• Price to Book (P/B): 292.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.27K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ―

Red Rock Resources' stock is under pressure due to significant financial challenges, including negative cash flow and profitability issues. Although technical indicators suggest some potential for future improvement, the company's valuation is weak, with a negative P/E ratio and no dividend yield. Corporate events present both opportunities and risks, notably the legal proceedings in the DRC and recent share issuance to improve its financial standing.

Red Rock Resources Business Overview & Revenue Model

Company Description

Red Rock Resources Plc engages in the production and exploration of natural resources assets in the United Kingdom, South Africa, Kenya, Democratic Republic of Congo, and Australia. The company explores for manganese, iron ore, uranium, gold, copper, cobalt, lithium, and nickel, as well as oil and gas properties. It holds a 100% economic interest in the Migori Gold project located in Kenya. The company was incorporated in 2004 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Red Rock Resources makes money through several key revenue streams, primarily from the sale of extracted minerals such as gold and manganese. The company generates income by developing and operating its own mining projects and through strategic investments and joint ventures with other companies in the mining sector. Additionally, RRR may earn revenue from royalties and licensing agreements related to its mining properties. Significant partnerships with other mining operators and investors also play a crucial role in enhancing its revenue generation capabilities, allowing for shared resources and reduced operational risks.

Red Rock Resources Financial Statement Overview

Summary

Red Rock Resources is facing significant financial challenges. The lack of revenue growth and negative margins suggest operational inefficiencies and profitability issues. Despite some stability in the balance sheet, the increasing debt level could pose a risk. The negative cash flow situation further indicates ongoing liquidity problems. The company needs to implement strategic changes to improve its financial health.

Income Statement

Red Rock Resources has consistently struggled with generating revenue, reflected in the zero total revenue figures for multiple years except for 2023. Gross profit margins and net profit margins are negative, indicating ongoing operational challenges. The EBIT and EBITDA margins are also unfavorable, highlighting inefficiencies in cost management and profitability issues.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, but the trend of increasing debt over recent years is a concern. The return on equity is negative due to net losses, and the equity ratio is relatively stable but not strong enough to mitigate the financial risks associated with continual losses.

Cash Flow

Operating and free cash flows are negative, pointing to liquidity challenges. The company has shown some ability to raise financing, but the free cash flow to net income ratio is poor, indicating that the company is not generating adequate cash from its operations relative to its net income loss.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	408.59K	0.00	0.00	0.00
	Gross Profit
-51.00	-433.00K	-409.00	-887.00	-864.00	-611.00
	EBIT
-783.88K	-2.13M	-2.32M	-2.38M	-2.02M	-1.22M
	EBITDA
-752.88K	-2.13M	-2.08M	-2.59M	-1.57M	375.00K
	Net Income Common Stockholders
-3.04M	-2.85M	-2.67M	-2.62M	-1.63M	5.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.00K	38.00K	155.00K	457.00K	56.00K	124.17K
	Total Assets
19.41M	19.30M	19.17M	19.34M	18.26M	12.36M
	Total Debt
4.76M	3.79M	2.42M	1.70M	1.08M	1.12M
	Net Debt
4.75M	3.75M	2.26M	1.24M	1.02M	1.06M
	Total Liabilities
7.56M	6.63M	4.84M	2.89M	4.43M	2.85M
	Stockholders Equity
12.00M	12.82M	15.02M	16.64M	13.96M	9.53M
Cash Flow		Free Cash Flow
-726.90K	-2.19M	-1.85M	-1.99M	-734.00K	-1.23M
	Operating Cash Flow
-726.48K	-1.75M	-1.51M	-1.68M	-660.00K	-991.58K
	Investing Cash Flow
-132.43K	-437.00K	-344.00K	-149.00K	845.00K	-1.51M
	Financing Cash Flow
824.98K	2.13M	1.82M	2.24M	-202.00K	251.27K

Red Rock Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RRR, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.19 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RRR.

Red Rock Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
RRR	39 Underperform	£1.86M	―	-22.79%	―	―	46.15%
REE		£3.42M	―	-114.83%	―	―	―
SKA		£4.01M	―	-25.13%	―	―	―
URU	24 Underperform	£2.40M	―		―	―	―
AFP		£1.67M	―	-15.35%	―	―	―
FCM		£5.12M	―	-48.69%	―	―	―

Red Rock Resources Corporate Events

Red Rock Resources Issues Shares to Settle Debt

Red Rock Resources Plc announced the issuance of 426,829,268 ordinary shares to settle a £175,000 debt, with the shares expected to be admitted for trading on AIM around 9 May 2025. This move increases the company’s total ordinary share capital to 7,096,889,518 shares, impacting shareholder voting rights and potentially influencing market perceptions of the company’s financial strategy.

Spark’s Take on GB:RRR Stock

According to Spark, TipRanks’ AI Analyst, GB:RRR is a Underperform.

Red Rock Resources’ stock is under pressure due to significant financial challenges, including negative cash flow and profitability issues. Although technical indicators suggest some potential for future improvement, the company’s valuation is weak, with a negative P/E ratio and no dividend yield. Corporate events present both opportunities and risks, notably the legal proceedings in the DRC and recent share issuance to improve its financial standing.

To see Spark’s full report on GB:RRR stock, click here.

Red Rock Resources Expands Share Capital with New Issuance

Red Rock Resources Plc announced the issuance of 146,636,298 new ordinary shares under its Share Incentive Plan for the 2024/25 tax year, with significant participation from its directors. This move is expected to impact the company’s share capital and voting rights, with the new shares set to be admitted to trading on AIM by 7 May 2025, potentially influencing shareholder interests and company transparency.

Spark’s Take on GB:RRR Stock

According to Spark, TipRanks’ AI Analyst, GB:RRR is a Neutral.

The overall stock score for Red Rock Resources reflects significant financial challenges, with poor financial performance due to negative revenue growth and high debt levels. While technical analysis indicates some short-term positive trends, the valuation remains unattractive due to negative earnings. Corporate events present both risks and opportunities, with legal proceedings and capital raises impacting the company’s strategic outlook.

To see Spark’s full report on GB:RRR stock, click here.

Red Rock Resources Faces Crucial Legal Decision Amid Financial Strains

Red Rock Resources announced its unaudited half-yearly results for the six months ending December 2024, highlighting ongoing legal proceedings in the DRC over its copper-cobalt asset. A favorable outcome could significantly enhance the company’s value and operational capabilities, while a negative result could strain finances and necessitate asset disposals or restructuring. The company is also exploring potential transactions in Burkina Faso and anticipates renewed royalty payments from its Colombian gold asset.

Red Rock Resources Issues New Shares and Warrants to Strengthen Financial Position

Red Rock Resources Plc has announced the issuance of 71,428,571 new ordinary shares and an equal number of warrants as part of a subscription agreement with an existing shareholder. This move, which involves a cash advance of £25,000, will see the shares admitted to trading on AIM, increasing the company’s total voting rights to 6,523,423,952. The issuance aims to bolster the company’s financial position and potentially enhance its market operations, reflecting its strategic focus on expanding its resource exploration and development activities.

Red Rock Resources Perseveres Amidst DRC Challenges

Red Rock Resources PLC has provided an update on its arbitration proceedings in the Democratic Republic of the Congo (DRC), highlighting that despite disruptions caused by regional instability, the company has managed to maintain progress and expectations. The company’s chairman, Andrew Bell, emphasizes their commitment to resolving the matter swiftly, underscoring the importance of their local partnerships and consistent efforts to mitigate delays.