Red Rock Resources plc Announcement by Jupiter Mines Ltd (5771P)
18 February 2021 - 8:44PM
UK Regulatory
TIDMRRR
RNS Number : 5771P
Red Rock Resources plc
18 February 2021
Red Rock Resources PLC
("Red Rock" or the "Company")
Announcement by Jupiter Mines Ltd
18 February 2021
Red Rock Resources Plc, the natural resource development company
with interests in gold, copper/cobalt, manganese and minerals,
announces, further to the update of 21 January 2021, an update in
relation to its investment in Jupiter Mines Ltd ("Jupiter").
Jupiter made the following announcement today to the Australian
Stock Exchange (ASX), a full text of which is also available at
www.jupitermines.com :
"TSHIPI DECLARES ZAR1.1 BILLION H2 DIVIDEND
Jupiter Mines Limited ("Jupiter") (ASX: JMS) is pleased to
announce that the Board of Tshipi é Ntle Manganese Mining
Proprietary Limited ("Tshipi") has declared a final dividend to its
shareholders of ZAR1.1 billion for FY2021. Jupiter will receive
ZAR521.5 million (approximately A$46.1 million; net of withholding
tax). Jupiter will also receive ZAR30.6 million (approximately
A$2.7 million) in marketing profits.
Throughout the uncertainty caused by the COVID-19 pandemic,
mining challenges, excessive rain and depressed manganese prices,
Tshipi has demonstrated its abilities to continue to remain
proftable and cash positive.
Tshipi will end FY2021 with approximately ZAR1.757 billion cash
at bank. The Tshipi board has not yet made a decision on the
expansion study in light of further areas of the study to be
explored. Tshipi has distributed a total of ZAR9.26 billion to its
shareholders over the past 5 years against its construction costs
of approximately ZAR2 billion.
The Board will consider the dividend to Jupiter shareholders
along with its full year results, and will make any final dividend
declaration for FY2021 in line with the reporting timeframe."
Red Rock Chairman Andrew Bell comments : "As a Jupiter
shareholder, Red Rock welcomes this evidence that Tshipi
profitability has recovered well from the impact last year of
Covid-19 on South Africa. The trend of Tshipi dividend
announcements since 2019 shows the impact of a dip in manganese
prices followed by the impact of Covid shutdowns, and the
subsequent recovery:
February 2019 ZAR 1.1bn
September 2019 ZAR 600m
March 2020 ZAR 265m
September 2020 ZAR 330m
February 2021 ZAR 1.1 bn
This augurs well for Jupiter's final dividend declaration, given
the high payout ratio that Jupiter has historically adopted."
Further Information
Jupiter's principal asset is a 49.9% stake in Tshipi é Ntle
Manganese Mining Proprietary Ltd, which operates the Tshipi Borwa
mine, an open pit manganese mine in the Kalahari Manganese Field
located in the Northern Cape of South Africa. Tshipi is one of the
largest and lowest cost manganese exporters globally.
Jupiter announced on 21 January 2021 the demerger and Initial
Public Offering on the Australian Stock Exchange of its Central
Yilgarn Iron Ore assets ("CYIP") through the newly created company
Juno Minerals Ltd ("Juno").
Juno intends to issue 120,000,000 shares to Jupiter, in exchange
for the CYIP assets and $5 million in seed capital provided by
Jupiter. Jupiter will then distribute these shares in-specie to its
shareholders.
A public offer is being made of up to 80,000,000 Juno shares to
raise an amount of up to $20 million (before costs), and closes on
26 February 2021, with trading expected to start on 8 March .
The Central Yilgarn Iron Ore Project consists of (a) the Mt Ida
magnetite deposit, where a 1.23 bn ton JORC compliant Indicated
Resource of 29.79% Fe in its Central Zone, capable of beneficiation
to a 66.65% concentrate, and a JORC compliant Inferred Resource of
615m tons at 28.86% in the Northern and Southern Zones, was
announced by Jupiter on 8 January 2013, and (b) the Mt Mason DSO
haematite deposit, where Jupiter announced a 5.9m ton Measured and
Indicated Resource of 60.1% ore on 30 January 2012.
Red Rock has a 0.7% holding in Jupiter Mines valued currently at
approximately GBP2.72m. The Company also has a 1.3% gross revenue
royalty over the Mt Ida iron ore project. Anglo-Pacific Group plc
has an obligation to purchase 0.45% of this royalty interest from
Red Rock for $8m upon the achievement by Jupiter of certain
milestones in relation to Mt Ida, namely (a) a definitive
feasibility study and decision to proceed, and (b) commercial
production.
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
Mark Treharne 0203 700 2500 Broker Pello Capital Limited
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END
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