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