Red Rock Resources plc Jupiter Mines - Update (7670H)
August 02 2019 - 6:25AM
UK Regulatory
TIDMRRR
RNS Number : 7670H
Red Rock Resources plc
02 August 2019
Red Rock Resources plc
("Red Rock " or the "Company")
Jupiter Mines - Update
2 August 2019
Red Rock Resources Plc, the natural resource development company
with interests in gold, manganese and battery minerals, announces
that Jupiter Mines Limited ("Jupiter", ASX:JMS), an Australian
public company in which Red Rock holds 18,524,914 shares (0.95%),
has held its general meeting for the year ending 28 February
2019.
Jupiter owns 49.9% of the Tshipi Borwa open pit manganese mine
in South Africa.
Highlights
-- Sales in current financial year are in line with business
plan, with 0.84mt of ore sold in Q1 (3.51mt sold in FY 2019)
-- Manganese price remains firm with cash costs $2.13 per DMTU
(dry metic ton unit) in Q1 and sale price for 37% ore $5.32 per
DMTU (both FOB)
-- Chinese steel production up 6.5% in 2018, with domestic Mn
production continuing to fall, and new regulations for rebar
requiring more silico-manganese
-- Tshipi now biggest single Mn mine in S Africa, with 9% of world seaborne Mn market
-- With 432mt Resource base, 5m tpa fast load-out station, and
3.6m tpa crushing capacity, Tshipi has both 100 year life and
capacity for continued expansion
-- EV market may start to impact demand: BASF expects 70% Mn
content in its EV battery cathodes by 2021
-- Jupiter price up 71% since end 2018 to A$0.41 (market value
A$803m) with historic yield 18.2%, historic PER 4.2x, and historic
Price to EBITDA 2.8x
-- First half dividend payout so far this financial year
A$0.025, with a further instalment expected at the interim
stage.
The Investor Presentation, with an analysis of the manganese
market and Jupiter's place within it, can be found at
www.jupitermines.com
At the closing price of Jupiter shares on the Australian Stock
Exchange today of A$0.41, Red Rock's holding is worth A$7,595,214
(GBP4,251,876).
Andrew Bell, Red Rock Chairman, comments: "Jupiter continues to
demonstrate the stability, consistency, and simplicity of the
first-rate business it is. With a stated policy of a 70% payout
ratio, it achieved 90% payout last year, and is on course to
provide a continuing strong earnings and dividend stream this
year.
We expect organic growth and consolidation of its interests to
drive the business over the next four or five years, with EV
materials potentially providing a significant source of incremental
demand at the end of that period.
The significance to us of our holding in Jupiter is demonstrated
by the fact that the value of our holding today is 34% in excess of
our market value of GBP3,177,433".
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
Jason Robertson 0207 374 2212 Broker First Equity Limited
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END
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