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RNS Number : 5365H
Red Rock Resources plc
25 March 2020
Red Rock Resources PLC
("Red Rock" or the "Company")
Update on Impact of COVID-19 Pandemic
25 March 2020
Red Rock Resources Plc, the natural resource development company
with interests in gold, manganese and minerals, announces an update
on the impact of COVID-19 on its business and prospects.
The pandemic has had impacts in all the key locations where the
Company operates:
Democratic Republic of Congo
Over 30 cases have been recorded, with one death, with initial
cases linked with arrivals from France and Belgium. Flights have
been suspended and schools, bars and restaurants closed. The mining
centre and second city, Lubumbashi in Haut-Katanga, is on a 48 hour
lockdown after arrival by air of two infected persons from the
capital, to allow contact tracing.
Planning for a new stage of exploration on the Luanshimba
license, 80% owned, which is prospective for copper and gold,
continues.
Meanwhile the last confirmed Ebola patient in the country has
been released from hospital. A summary of the lessons learnt from
this outbreak is on the Médecins sans Frontières website
(msf.org).
South Africa
The country has 554 cases, with no deaths, all but a dozen or so
imported by travellers, which is the highest number in sub-Saharan
Africa. With fears of a rapid increase in infections as the weather
cools, and a large immunocompromised population, the Government has
taken action, imposing a 21 day lockdown from midnight on 26 March.
Most shops and businesses are to close, and all but key workers
confined to their homes. Mines have been closed for 21 days. Most
international flights have been stopped. Schools have been
closed.
It was initially unclear whether this applied to open pit mines,
but following clarification it appears that only coal mines
supplying power stations are exempted and the Tshipi manganese mine
(49.9% owned by Jupiter Mines Ltd (ASX:JMS) in which the Company is
an investor) has closed its open pit mine for the 21 day
period.
Kenya
With 25 cases, and no deaths, Kenya has been early and proactive
in taking measures to prevent spread. Schools closed,
self-isolation and testing were introduced, and flights from
countries with confirmed cases were stopped for 30 days. Now all
international flights will be suspended from midnight 25 March. A
compulsory 14 day quarantine on arrivals has been imposed.
Offices including Government offices remain open, and the
Company has continued to maintain its camp and deal with business
in the normal way. Further short term Government measures are
anticipated.
Red Rock Chairman Andrew Bell comments : "For most of the first
ten weeks of the year management were travelling overseas in
anticipation of the current shutdowns, returning just as airports
were being closed. The Company is therefore up to date on local
developments and has had many interactions, now being followed up,
with its local counterparts.
We are not currently able to visit any of our operations due to
travel restrictions. We do not anticipate that this will inhibit
our activities in the near-term.
The countries in which we operate have taken actions which
should reduce the rate of transmission and keep numbers at a level
where tracing, isolation, and testing can be brought to bear to
eliminate infection, as in East Asia.
We have some confidence in the capability of the Governments in
the African countries in which we work to handle epidemics of this
kind. There are also fewer means of internal travel, and recent
experience of handling epidemics. In this pandemic, countries are
also learning from each other.
We note the recovery of economic activity and demand in China,
evidenced by the return of normal conditions in the manganese
market and the increasing manganese price over recent weeks.
China needs manganese, and particularly South African manganese,
for its steel industry and to avoid shortages it is necessary that
production resumes after the shortest possible delay.
The effect of the pandemic on economic activity in Europe, and
on financial markets, has been severe however. The Company's share
price has been affected. We are grateful to our shareholders for
their calm, and for the support they have given us, in what for
many investors may have been a stressful time. We feel for them. We
know it is our responsibility to ensure that the Company will be
running as normal and that we must spare no efforts in preparing
the Company for the period ahead, as well as the opportunities that
may emerge.
The monetary expansion that is under way in many countries has
the potential to create several benefits. One of these, that we
already see, is in demand for gold, the price of which has already
risen. Another, after a short interval, may be to market
liquidity.
From this point forward, therefore, the Company sees upside
potential rather than a potential for more downside surprises".
The Company will issue its interim results before the end of
March.
For further information, please contact:
Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc
Scott Kaintz 0207 747 9990 Director Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Tim Sohal 0203 700 2500 Broker Pello Capital Limited
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END
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