Hot Rocks Investments plc: Final Results

1 October 2024

HOT ROCKS INVESTMENTS PLC

(the "Company")

Audited Final Results to 31 March 2024

Managing Director’s Statement

 

I hereby present the financial results for the Company for the year ended 31 March 2024.  The Company has been an active investor primarily in junior natural resources companies. The Company also reviews opportunities to invest in other sectors, particularly technology, and generally seeks to invest in exciting companies where our valuation entry point reflects the early-stage nature of their business or sector which, although carrying higher risk, gives us exposure to considerable upside. 

 

We have continued to build and nurture our investment portfolio and we are generally pleased with performance, particularly in light of difficult market conditions in the space in which we operate. We also have a favourable cash position enabling us to take advantage of situations as they arise.

 

The Company made a profit for the year of £46,984, and a loss of £367,811 in the prior year. The Company will not be paying a dividend for the foreseeable future (2023: £Nil) as we seek to reinvest any profits in opportunities with the potential for significant capital growth.

 

Cash and cash equivalents as at the year end of 31 March 2024 were £5,386 (2023: £21,928).

 

In May 2024 we announced with sadness the passing of our Chairman, Brian Rowbotham. Brian qualified as a Chartered Accountant with Deloitte & Touche and had a long career in the City including at Save and Prosper and F&C Management Ltd. Brian joined Teather and Greenwood in 1997 and was involved as partner and then Finance Director in the Company’s flotation on AIM and subsequent move to the Official List. He ran his own consultancy specialising in turnarounds and start-ups until joining Hichens, Harrison & Co plc in 2005 – sold to Religare Enterprises in May 2008. Aside from being a colleague, Brian was a good friend and he is missed greatly.

 

Post the year end we sold approximately 94% of our holding in Phoenix Digital Assets plc in a tender offer for the sum of £235,125.

 

We also sold our holding in Impact Oil & Gas Limited, to Africa Oil Corp, receiving the sum of £142,250, a 5.6X return on the Company’s investment.

 

Elephant Oil Corp, where we hold 659,091 shares, has been seeking to list on an exchange at a price of $4-$5 per share. It has to date not achieved this flotation but we are pleased to note that the company has recently acquired 3 oil exploration blocks in Cote D’Ivoire to complement its portfolio in Benin and Namibia.

 

Mosi Copper Limited, an Africa-focused copper exploration company where we are a founder shareholder, continues to make good progress, has recently commissioned magnetics on its licence interests and plans to float on a stock exchange in the near term. 

 

Golden Shield Resources has announced a non-binding letter of intent with Tucano Gold Inc. (“Tucano Gold”) pursuant to which it will acquire all of the issued and outstanding securities of Tucano Gold in exchange for securities in Golden Shield.

 

We now hold cash of approximately £340,000 and ordinary shares and/or convertible loans and/or warrants in the following entities:

 

D3 Energy

Electrum Discovery Corp

Elephant Oil Corp

Laiva Gold Inc

Mafula Energy Limited

Minergy Limited

Mosi Copper Limited

New Horizon Oil & Gas Limited

Orcadian Energy plc

Phoenix Digital Assets plc

Pilar Gold Inc

Rift Resources Limited

Royal Road Minerals Limited

Supernova Digital Assets plc

Trigon Metals Inc

Tucano Gold Inc

Unicorn Mineral Resources plc

 

We look forward to updating the market on further new investments in the coming months.

 

Gavin Burnell

Managing Director

 

 

For further details please contact:

Hot Rocks Investments plc

Gavin Burnell Tel: 0207 2644 546

 

Optiva Securities Limited

Vishal Balasingham Tel: 0203 981 4174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOT ROCKS INVESTMENTS PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED  31 MARCH 2024

 

 

		2024	2023
		£	£
Continuing Operations
Revenue		-	-
Operating expenses		(67,902)	(78,206)
Other profit/(loss) – sale of financial assets at fair value through profit and loss account		775	(62,462)
Foreign exchange loss on financial assets		-	(30,108)
Movement in fair value of financial assets through profit and loss		113,928	(197,063)
		──────────	──────────
OPERATING PROFIT/(LOSS)		46,801	(367,839)
Finance income		183	28
		─────────	─────────
PROFIT/(LOSS) BEFORE INCOME TAX		46,984	(367,811)
Income tax		-	-
		─────────	─────────
PROFIT/(LOSS) AFTER INCOME TAX		46,984	(367,811)
		══════════	══════════
Other Comprehensive Income
Items that may be reclassified subsequently to profit or loss		-	-
Fair value change in value on financial assets		-	-
		───────── ─────────	─────────
Total Comprehensive income/(loss) for the year		46,984	(367,811)
		══════════	══════════
Basic Earnings per share (pence)		0.03	(0.21)
Diluted Earnings per share (pence)		0.02	(0.19)

HOT ROCKS INVESTMENTS PLC

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED  31 MARCH 2024

 

 

	Issued capital	Share premium	Other reserves	Retained earnings	Total equity
	£	£	£	£	£
Balance at 1 April 2024	173,602	1,174,631	115,600	(989,460)	474,373
Profit for the year	-	-	-	46,984	46,984
	──────────	─────────────	──────────	──────────	──────────
	173,602	1,174,631	115,600	(942,476)	521,357
	══════════	═════════════	══════════	══════════	══════════

 

	Issued capital	Share premium	Other reserves	Retained earnings	Total equity
	£	£	£	£	£
Balance at 1 April 2023	173,602	1,174,631	115,600	(621,650)	842,183
Loss for the year	-	-	-	(367,811)	(367,811)
	──────────	─────────────	──────────	──────────	──────────
	173,602	1,174,631	115,600	(989,460)	474,373
	══════════	═════════════	══════════	══════════	══════════

HOT ROCKS INVESTMENTS PLC

STATEMENT OF FINANCIAL POSITION

AS AT  31 MARCH 2024

 

 

Notes				2024	2023
				£	£
ASSETS
	NON-CURRENT ASSETS
		Financial assets designated as fair value through profit or loss		408,583	385,171
	CURRENT ASSETS
		Financial assets designated as fair value through profit or loss		416,240	344,393
		Trade and other receivables		117	606
		Cash and cash equivalents		5,386	21,928
				──────────	──────────
				421,743	366,928
				──────────	──────────
	TOTAL ASSETS			830,326	752,098
				══════════	══════════
EQUITY
	ISSUED CAPITAL AND RESERVES
		Issued share capital		173,602	173,602
		Share premium		1,174,631	1,174,631
		Reserves		115,600	115,600
		Retained loss		(942,476)	(989,460)
				─────────────	─────────────
		TOTAL EQUITY		512,357	474,373
CURRENT LIABILITIES
	Trade and other payables			308,969	277,725
				──────────	──────────
TOTAL EQUITY AND LIABILITIES				830,326	752,098
				══════════	══════════