JOHANNESBURG (miningweekly.com) – Perth-based mining company Jupiter Mines has announced a $42-million off-market equal access share buyback priced at $0.35 apiece.
The buyback will be for 5.81% of the shares in Jupiter and is expected to be mostly funded by a significant distribution by subsidiary Tshipi é Ntle manganese mining and the profits earned by Jupiter’s manganese marketing business.
Tshipi expects to close its financial year ending February 28, 2018, with 3.3-million tonnes of sales, $250-million in earnings before interest, taxes, depreciation and amortisation and $160-million in net income.
The mine resolved to distribute R1.1-billion to its shareholders, an increase on the prior forecast of R600-million on the back of a sustained production increase at Tshipi against the backdrop of robust manganese prices.
The distributions, to date, have returned R2.6-billion to the Tshipi shareholders, compared with the R2-billion capital cost of the project.
The buyback offer will open on January 29.
Pallinghurst Resources, which holds 18.4% of Jupiter, on Monday said it stands to receive about $8-million, or about R94-million, from Jupiter as part of the buyback.