Rockfire reports reduced loss, reassures over going concern uncertainty

(Sharecast News) - Rockfire Resources reported a reduced full-year loss on Friday and said it had made further progress at its Molaoi zinc, lead, silver and germanium project in Greece, while flagging a material uncertainty over going concern as it continues to rely on further funding for exploration.

The AIM-traded base metal, critical mineral and precious metal explorer said its total comprehensive loss for the year ended 31 December narrowed to �1.29m from �2.29m in 2024.

The loss before tax was �1.33m, compared with �2.00m a year earlier, while administrative expenses fell to �1.43m from �2.00m.

Cash at year-end stood at �1.06m, up from �0.94m, while total equity rose to �7.29m from �6.21m.

Intangible exploration assets increased to �6.43m from �5.66m, reflecting further capitalised exploration work, mainly at Molaoi.

Rockfire said it raised �2m before expenses in July through a placing of 2.0bn shares at 0.1p each, with investors also receiving one warrant for every two new shares subscribed.

A further placing to raise �3m before expenses was announced in December through the issue of 2.31bn shares at 0.13p each, with shareholder approval granted on 2 January and completion taking place after the year end.

The company said the 2025 financial year was marked by "growth of the Molaoi project and strategic development of the company generally".

It appointed CMC Markets UK as joint broker in February and Oak Securities as a third joint broker in December, which chairman Gordon Hart said had helped the company raise significant capital and attract its first institutional investors.

At Molaoi, Rockfire advanced technical work during the year and engaged SLR Group to assist with project development.

The company also began long lead-time components of its planned pre-feasibility work in September, including hydrology and ecological studies, which require at least 12 months of baseline monitoring.

The company said drilling delivered mixed results, with holes HMO-008 and HMO-009 unable to reach their planned target depths due to poor ground conditions

Hole HMO-010 intersected 4.0 metres at 5.1% zinc, 23 grams per tonne silver and 15 grams per tonne germanium from 256.5 metres, including 2.3 metres at 8.2% zinc, 22.3 grams per tonne silver and 17.7 grams per tonne germanium.

Rockfire also converted its Molaoi JORC resource to the United Nations Framework Classification for Resources, describing it as one of the first resource projects in Europe to be classified under the new code.

Zinc, silver and lead resources were classified as E2, F2.1 and G3, while germanium was classified as E3.2, F3.1 and G4.1, reflecting an earlier-stage resource with lower project definition and geological confidence.

The firm said Molaoi continued to show longer-term growth potential, with pXRF soil and rock surveys identifying additional targets at Fournos, Gkagkania and Agios Eustratios.

Agios Eustratios was drilled by the Greek government in the late 1980s and returned 0.5 metres at 27.3% zinc.

Hart said germanium had continued to strengthen as a critical and rare mineral, with prices rising 106% over the past 12 months to $8,597.50 per kilogram.

"Germanium, used in high-powered sighter scopes, missile guidance systems and sensor precision is in short supply globally and the Molaoi Project will soon be the only quoted germanium resource in Europe," he said.

In Australia, Rockfire said Sunshine Gold had not yet earned an interest in the Lighthouse joint venture, as required expenditure milestones had not been met.

Sunshine nevertheless reported drilling at Plateau during the year, including 8 metres at 3.17 grams per tonne gold and 31 grams per tonne silver.

Rockfire also entered a new farm-in agreement with ASX-listed Eastern Resources over the Marengo gold project in Queensland.

Eastern can earn up to an 80% interest by sole-funding exploration over three years, after which Rockfire can either contribute to ongoing expenditure or convert its retained interest to a 1.5% net smelter royalty.

The auditor drew attention to a material uncertainty related to going concern, noting that Rockfire would require further funds over the next 12 months to undertake planned exploration programmes and meet minimum expenditure commitments.

The company said its cash flow forecasts assumed that exploration programmes would continue only with additional equity funding, which was not guaranteed, although it noted it had so far been successful in securing funding when required.

The company's annual general meeting will be held in London on 29 June.

At 1440 BST, shares in Rockfire Resources were down 9.68% at 0.14p.

Reporting by Josh White for Sharecast.com.

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