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Red Rock Resources (GB:RRR)
:RRR

Red Rock Resources (RRR) AI Stock Analysis

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Red Rock Resources

(LSE:RRR)

Rating:39Underperform
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 (RRR) vs. iShares MSCI United Kingdom ETF (EWC)

Red Rock Resources Business Overview & Revenue Model

Company DescriptionRed 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 MoneyRed 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
20
Very Negative
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
45
Neutral
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
30
Negative
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.00408.59K0.000.000.00
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-1.57M375.00K
Net Income Common Stockholders
-3.04M-2.85M-2.67M-2.62M-1.63M5.16M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.00K38.00K155.00K457.00K56.00K124.17K
Total Assets
19.41M19.30M19.17M19.34M18.26M12.36M
Total Debt
4.76M3.79M2.42M1.70M1.08M1.12M
Net Debt
4.75M3.75M2.26M1.24M1.02M1.06M
Total Liabilities
7.56M6.63M4.84M2.89M4.43M2.85M
Stockholders Equity
12.00M12.82M15.02M16.64M13.96M9.53M
Cash FlowFree 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-149.00K845.00K-1.51M
Financing Cash Flow
824.98K2.13M1.82M2.24M-202.00K251.27K

Red Rock Resources Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.04
Negative
100DMA
0.04
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
38.19
Neutral
STOCH
100.00
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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.03B-1.27-21.09%3.98%2.91%-30.50%
GBRRR
39
Underperform
£1.86M-22.79%46.15%
GBREE
£3.42M-114.83%
GBSKA
£4.01M-25.13%
GBURU
24
Underperform
£2.40M
GBAFP
£1.67M-15.35%
GBFCM
£5.12M-48.69%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RRR
Red Rock Resources
0.03
-0.01
-25.00%
GB:REE
Altona Energy
2.05
0.67
48.55%
GB:SKA
Edenville Energy
6.00
-2.50
-29.41%
GB:URU
URU Metals
4.50
2.50
125.00%
GB:AFP
African Pioneer PLC
0.60
-1.95
-76.47%
GB:FCM
First Class Metals Plc
2.35
-0.20
-7.84%

Red Rock Resources Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Red Rock Resources Issues Shares to Settle Debt
Neutral
May 2, 2025

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.

Delistings and Listing ChangesPrivate Placements and Financing
Red Rock Resources Expands Share Capital with New Issuance
Neutral
Apr 29, 2025

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.

Legal ProceedingsBusiness Operations and StrategyFinancial Disclosures
Red Rock Resources Faces Crucial Legal Decision Amid Financial Strains
Negative
Mar 31, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Red Rock Resources Issues New Shares and Warrants to Strengthen Financial Position
Positive
Feb 25, 2025

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.

Legal ProceedingsBusiness Operations and Strategy
Red Rock Resources Perseveres Amidst DRC Challenges
Neutral
Feb 19, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.