Red Rock Resources: Value articulated

A much lofted phrase, but we certainly are in ‘difficult times’ when it comes to small cap mining and exploration shares. In fact times are so difficult that the usual market responsibility of valuing a company in line with current assets, combined with a reflection of future potential has gone completely out of the window.

In times when certain market commentators seek to bemoan conditions and demonstrably worry about the future, we are scouring the market to identify value opportunities that the markets may, in their dubious wisdom, have battered to the floor – valuation wise – with unreasonable efficacy. This task is illuminating for sure, and strong hearted investors are likely to do very well buying shares in this trough, but it is also somewhat demoralising to see companies languishing on the floor when we know the hidden value that lies beneath. So, it is particularly heartening when one of the companies we follow closely actually demonstrates to market the value it is creating and helps enliven our spirits with a taster of what may be delivered in the future.

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