Red Rock Resources - Drilling of banded iron ore formations in Greenland gets off to a good start

 

 

Red Rock Resources	Update 20th July 2012
Drilling of banded iron ore formations in Greenland gets off to a good start	Speculative Buy     Target price 6p     Key data Price 2.20p 52 week high/low 7.40p/1.55p Primary exchange AIM EPIC RRR Shares in issue 884m Market Cap £19.2m Sector Mining       Valuation   EV/EBITDA 2.5 P/E 1.9 NAV / Share 3.71p TNAV / Share 3.45p     Previous note Interims show significant maiden mineral sales     Future event Sale of Colombian gold interests      Affiliations: None     Important: All disclaimer information can be found on the last page of the document
First drilling results from Greenland iron ore project demonstrate some impressive thickness and grades. Delivering shareholder value by taking the exploration/production interests and crystalising value by corporate moves. Next monetising event could be at the Colombian gold mining interests where a Canadian company is looking to acquire. Valuation based on peer comparisons and stakes in quoted companies allows us to place a target price of 6p on the stock. Click to download Full Report
Table: Financial overview Year to 30th June 2009A 2010A 2011A 2012E Revenue (£000) 0 9 943 7,200 PBT (£000) (928) 4,754 13,974 10,000 EPS (p) (0.23) 0.65 1.66 1.06 Dividend (p) 0.0 0.0 0.0 0.0 Yield (%) 0.0 0.0 0.0 0.0 Source: GECR and company

 

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