Red Rock Resources up 30% on big profits

Shares in miner Red Rock Resources were up almost a third at one point today after it announced full year profits had almost tripled.

The company said pre-tax profits for the year ended 30 June were just under £14m, up from £4.75m the previous year.

Earnings per share rose from 0.65p per share to 1.78p.

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Red Rock said the main factor behind the rise was its investment in Jupiter Mines ceasing to be accounted for as an associate and becoming an available for sale investment at market valuation.

This resulted in an attributable profit of £14,237,297.

In addition, the company's acquisition of securities in Ascot Mining occurred at below the market price resulting in a profit of £3.6m when marked to market.

Despite the good news, the company said it would not recommend a dividend.

Executive chairman Andrew Bell said he expected to see a year of great progress in the firm's key projects, which would see the company "come of age".

"What opportunities may arise outside our existing portfolio we cannot foresee, nor whether we will be in a position to take advantage of them, but even if we have only our existing project pipeline to develop, the prospects are excellent and we will be kept busy," he said.