Company Description
Red Rock is a mineral exploration and development outfit.
IPO Details
Issue Date 29-07-2005 Prospectus n/a
Issue Price 2.00p Lead Broker ARM Corporate Finance
Market Cap £2.87m Contact Tel 020 7512 0191
Method Placing
Sector Mining
Market Aim
Amount Raised £0.60m

Web site:- http://www.rrrplc.com/



Exploration update 3rd August 2006 - Red Rock Resources PLC said a significant new iron discovery has been made at its Central Yilgarn Iron Project in Australia. Jupiter is targeting extra iron ore tonnage of over 20 mln tonnes from the discovery. Production from the Central Yilgarn Iron Project is planned to be crushed on site, trucked to Menzies, 90 kilometres away, and then railed to the Port of Esperance

Exploration Update 9th August 2006 - Manganese Resource defined at Mkushi, Zambia gives an indicated tonnage of 2,365,000 million tonnes of manganese ore


Red River (RVR), which is a stock we rarely hear from, performed a similar trick, announcing the recovery of high-grade iron ore samples from a project in the Pilbara region of WA, and receiving a share price boost of A3 cents (20 per cent) to close the week at A18 cents. (courtesy of Minesite)



PLUS MARKETS LINK
http://www.plusmarketsgroup.com/details.shtml?ISIN=GB00B0CQLF79

Red Rock Resources plc said it has signed a
deal with Zambian firm Chiman Manufacturing Ltd for the processing of manganese
to produce ferromanganese.
The mineral exploration and development company said Chiman will provide
crushing, preparation, and processing of ore supplied by Red Rock's Zambian unit
from stockpiles and surface material at its Chiwefwe mining license.
The company added it expects to make first deliveries shortly.





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Yep, not over-inspiring but steady as you say! Most importantly, nothing to panic about!

http://www.proactiveinvestors.co.uk/companies/stocktube/818/red-rock-resources-chairman-says-fundamentals-in-no-way-justify-the-drop-in-share-price-.html

http://www.youtube.com/watch?v=4dwscpaK7Y0

Dear Shareholders and Colleagues,

You may have seen that we have announced some medium-term borrowings:

The provider is Cornhill. As we understand their business model, they look for high net worth individuals or other entities that may be interested in combining the safety and limited downside of secured lending, with a better return than those currently available from banks, gilts, or traded corporate bonds.

They do the due diligence, and offer the possibility of participation in a portfolio of corporate notes, so diversifying and potentially reducing risk to their clients. In some cases, the instruments offer convertibility or partial convertibility to enhance upside potential.

The interest rate on this loan is quite high at 14%. However, there are advantages for us in this instrument. First, we have further diversified our funding sources, which we regard as useful in itself. Also we have established our ability for the first time to access debt as well as equity, which may open the door to further diversification of funding sources on more competitive terms in future. We have also been able to provide for more than short term funding for our projects, which aids planning. And the structure is open-ended, enabling us to make further drawdowns under the existing documentation. And we have avoided issuing shares or selling shares at what we regard as unfavourable prices.

Most important however is the consideration that our stock is volatile. If the share price were not volatile, a medium-term high interest bullet loan with the possibility of early redemption might not be an attractive instrument.

But see the one year volatility on our stock price:


Quite apart from our subjective belief that the price of Red Rock is depressed and will rise, so that it is better that if we have to issue shares we do so at some future date, there is the objective fact that the volatility of our stock price is high. There is no compelling reason to expect this to change in the near future. The loan instrument, if looked at as a two year option for us to issue stock to repay it, is significantly undervalued as an option.

If our stock price volatility were low, this would not be so.

That is not to say that we are committed to repay the debt by issue of new Red Rock shares. We might do so by sale of assets (and if by sale of Jupiter shares, the same logic current undervaluation, and/or high volatility would apply and would be a further justification of our approach). Or we might do so from other revenues. But the prudent base case is that we may have to repay by share issuance.

I hope that this background will answer any questions you may have.

Andrew

Switch your money to Cornhill then, if they can manage to lend out at 14%!!! In today's market, that is a bad deal for RRR, imo, with lots of 'ifs & buts' attached to RRR's future financial strategy.

haven't really read it as i don't like or hold RRR any more, but 12 over base and then saying it's not that bad sounds like a bad snow job to me and i see no reason at all why any of you should want to hold let alone buy

Its quite a high rate (as AB himself states in the email above), but preferable to more dilution at this price.

cynic, if you don't read RRR rns's then how are you in a position to make a statement about whether people should buy/hold or not? I suggest you start reading a few if you want to offer a credible opinion on this stock.

you're in love with stock, so i hope you stay happily married .... personally, i think it's another load of shit but am happy to be proved wrong

A disappointing RNS that's for sure.

cynic,

No, I just read the RNS's.

Here's a video of the Minesite presentation from last week.

http://www.youtube.com/watch?v=56BIHZNHT-Y

so when are you guessing lazarus will rise from the grave, as at the moment, he looks to be snuggling down ever deeper?

cynic

You really need to some research on RRR and RGM before your usual deramping to live up to your name, it will only take you 20mins to understand how cheap both these companies are and that you can get in at this level, If not you are going to look very stupid again when these exceed 100p

if they do, then i shall be delighted for you all .... meanwhile, cuckoo, cuckoo, cuckoo

cynic,

When did you hold RRR?

from memory, a few months back

Try ore.,.

I've tried iron (haematite) and copper (chalcupyrite) ore but didn't like the taste of either of them. Which ore would you recommend to try?

ore-gasm

Late RNS on progress:-
http://moneyam.uk-wire.com/cgi-bin/articles/201107261707341208L.html

JMS up 4.3% last night on higher than average volume. Has it finally broken out of the downtrend? Where JMS goes we tend to follow (probably something to do with our 74m holding..).

Blue at last. Long may it continue.