Red Rock Resources (RRR) AI Stock Analysis

• Market Cap: £2.31M
• Dividend Yield: N/A
• Average Volume (3M): 62.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: N/A
• EPS Growth: 22.22%
• Country: UK
• Employees: 10
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 9,244,510,000
• 10 Day Avg. Volume: 27,679,813
• 30 Day Avg. Volume: 62,248,086
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: 0.02p ▲(5.00% Upside)

The score is driven primarily by very weak financial performance (persistent losses and ongoing cash burn) and bearish technical signals (price below key moving averages with depressed RSI and negative MACD). Corporate actions modestly improve runway and operational optionality but are offset by dilution risk, while valuation is limited by the company’s loss-making profile.

Positive Factors

Strategic Partnerships

Strategic partnerships allow Red Rock Resources to share resources and reduce operational risks, enhancing long-term revenue potential and market presence.

Potential Legal Outcome

A positive legal decision in the DRC could boost asset value and operational capacity, strengthening Red Rock's market position and financial health.

Royalty Payments

Renewed royalty payments from Colombian assets could provide a steady revenue stream, improving cash flow and supporting long-term financial stability.

Negative Factors

Negative Cash Flow

Negative cash flow indicates liquidity issues, limiting Red Rock's ability to invest in growth and potentially leading to financial instability.

Increasing Debt Levels

Rising debt levels can strain the company's financial flexibility, increasing risk and potentially impacting its ability to fund operations sustainably.

Profitability Issues

Negative profit margins highlight operational inefficiencies, which could hinder Red Rock's ability to achieve sustainable profitability and growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	408.59K	0.00	0.00
Gross Profit	-96.00K	0.00	-433.00K	-409.00	-887.00	-864.00
EBITDA	-2.91M	-2.91M	-2.13M	-2.08M	-2.59M	-1.57M
Net Income	-4.37M	-4.37M	-2.85M	-2.67M	-2.62M	-1.63M
Balance Sheet
Total Assets	17.73M	17.73M	19.30M	19.17M	19.34M	18.26M
Cash, Cash Equivalents and Short-Term Investments	18.00K	18.00K	38.00K	155.00K	66.00K	56.00K
Total Debt	5.65M	5.65M	3.79M	2.42M	1.86M	1.70M
Total Liabilities	8.60M	8.60M	6.63M	4.84M	2.89M	4.43M
Stockholders Equity	9.22M	9.22M	12.82M	15.02M	15.54M	16.64M
Cash Flow
Free Cash Flow	-546.86K	-1.27M	-2.19M	-1.85M	-1.99M	-734.00K
Operating Cash Flow	-516.73K	-1.24M	-1.75M	-1.51M	-1.68M	-660.00K
Investing Cash Flow	-216.00K	-216.00K	-437.00K	-344.00K	-149.00K	845.00K
Financing Cash Flow	1.44M	1.44M	2.13M	1.82M	-27.00K	2.24M

Red Rock Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 24.00 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, 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 *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GWMO	50 Neutral	£2.20M	-0.36	-18.92%	―	―	―
AFP	48 Neutral	£2.92M	-3.89	-16.00%	―	―	―
CHF	43 Neutral	£2.63M	-2.55	-163.85%	―	―	―
BMV	43 Neutral	£1.68M	-0.75	-15.28%	―	―	―
RRR	41 Neutral	£2.31M	-0.36	-39.69%	―	―	22.22%
SRES	41 Neutral	£1.95M	-1.25	-37.00%	―	―	-100.00%

Red Rock Resources Corporate Events

Red Rock Resources Widens Annual Loss but Banks on Asset Sales and DRC Breakthroughs

Red Rock Resources reported a pre-tax loss of £4.37 million for the year to 30 June 2025, wider than the prior year due to asset impairments and higher finance costs despite lower administrative expenditure. The company is repositioning its portfolio to capitalise on strong gold, copper and cobalt markets by selling non-core assets, such as its Colombian gold royalty for £1 million and certain Côte d’Ivoire interests for shares and royalties, while completing the buyout of minority stakes in its Australian gold projects. In the DRC, Red Rock has advanced both its legal and operational agenda, entering a memorandum with the Ministry of Rural Development and its local partner that has triggered a US$21 million government-funded social housing initiative expected to contribute to profit in the current year, and it anticipates court confirmation of significant monetary awards related to past copper and cobalt asset disposals. While the group remains highly indebted and loss-making, management expects near-term cash inflows from asset sales and legal settlements, alongside new JV-driven licence opportunities in the DRC and early-stage work in Burkina Faso, to strengthen its balance sheet and underpin future growth.

Red Rock Resources Raises Working Capital and Defers Key Payments to Extend Funding Runway

Red Rock Resources has raised £200,000 in cash from an existing long-term shareholder through the issue of 800 million new shares at 0.025 pence each to bolster working capital, with a second shareholder indicating an intention to convert a further £200,000 of debt into equity at the same price, subject to shareholder approval. Following the share issue, the company’s total voting rights will rise to 9,244,509,374 shares, while it has also agreed with Power Metal Resources to defer its final payment obligations to 31 March 2026 and extended the completion deadline for the conditional sale of its Ivory Coast licences to the same date, moves that collectively provide additional financial flexibility and a clearer funding runway into early 2026.

Red Rock Resources Raises £250,000 via Share Subscription and Warrants Issue

Red Rock Resources has raised £250,000 through a cash subscription arranged by Clear Capital Markets, issuing 1,190,477,000 new ordinary shares at 0.021 pence each to bolster general working capital. The company will also issue accompanying warrants, subject to shareholder approval, exercisable at 0.04 pence per share on the basis of two warrants for every five subscription shares, and has applied for the new shares to be admitted to trading on AIM around 29 December 2025, increasing its total voting rights to 8,444,509,374 ordinary shares and diluting existing shareholders while strengthening its short-term liquidity position.

Red Rock Resources Advances with Dalaroo Shareholder Approval and DRC Developments

Red Rock Resources announced significant progress in its operations, with Dalaroo Ltd’s shareholders overwhelmingly approving the issuance of consideration shares to Red Rock, marking a crucial step in the sale of Ivory Coast licenses. Additionally, the company is advancing its joint venture in the Democratic Republic of Congo, focusing on copper-cobalt and gold licenses, and is optimistic about a favorable outcome in its ongoing litigation with VUP, which could strengthen its position in the region.

Red Rock Resources Advances DRC Joint Venture with Social Housing Initiative

Red Rock Resources has reached a significant milestone in its joint venture with Koto DRC SARL in the Democratic Republic of Congo. The signing of a Memorandum d’Entente with the Ministry of Rural Development marks the start of a social housing project, which will see the construction of three factories to produce housing units. This development not only advances Red Rock’s strategic goals in the region but also aligns with the government’s social objectives. The company plans to leverage this progress to explore and identify potential mining projects, enhancing its position in the copper, cobalt, and gold sectors without requiring additional funding.

Red Rock Resources Sells Ivory Coast Licenses to Dalaroo Metals

Red Rock Resources Plc has entered into a binding conditional agreement to sell its wholly-owned subsidiary, LacGold Resources SARLU, which holds gold exploration licenses in the Ivory Coast, to Dalaroo Metals Ltd. This transaction allows Red Rock to receive shares in Dalaroo, enhancing its liquidity and enabling participation in future successes if exploration leads to an Indicated Resource. This strategic move aligns with Red Rock’s focus on monetizing non-core assets, as demonstrated by a recent sale in Colombia, and positions the company to better manage its portfolio and commitments.