Business
Annual Financial Report
Annual Financial Report.
About this update from Red Rock Resources Plc
[{"type":"text","content":"\n \nRNS Number : 3965X Red Rock Resources plc 23 November 2017 \n\nRed Rock Resources plc\n(\"Red Rock\" or the \"Company\")\n \nFinal Audited Results for the Year Ended 30 June 2017\n \n23 November 2017\n \nA copy of the Company's annual report and financial statements for 2017 - extracts from which are set out below - will be made available on the Company's website www.rrrplc.com shortly and at the Annual General Meeting to be held on 22 December 2017.\n \nChairman's Review\n \nDear Shareholders,\n \nOverview\n \nI began last year's review by repeating the statement we had made several times in 2016, that there had been a significant turning point in the commodity sector and that the multi-year recession in the sector had ended. If I return to this point again, it is only to suggest that our price expectations may still be to some extent conditioned by the extreme price lows seen in late 2015 to early 2016, and the rises in price some commodities have seen may seem substantial only because the levels from which they occurred were anomalously low. \nThe recovery is still a young recovery, and two factors in particular suggest that there may be continuing commodity strength. First, that economic growth seems to be picking up in all regions of the world and in almost all large economies. Such a synchronised recovery is unusual and will translate directly into increased commodity demand. Secondly, an electric vehicle and battery revolution is gathering pace, and this will have large but not yet perfectly quantifiable effects on incremental demand for several commodities, including nickel, manganese, cobalt and lithium, as well as copper (at least short term) and possibly vanadium. \nWe are fortunate in our involvement as a shareholder in the unlisted Jupiter Mines Ltd, the co-owner and operator of the open pit Tshipi é Ntle Mine in the Northern Cape Province, the world's third largest producer, we believe, of metallurgical grade manganese. Tshipi is in the exceptional position of having at current levels of production some 100 years of reserves. Since some 95% of current metallurgical manganese production goes to steel making, the impact of battery demand on the supply-demand equation is likely to be large. Current price levels have enabled us to receive a distribution of £538,74...