JOHANNESBURG (miningweekly.com) – Diversified miner Pallinghurst Resources expects to receive about $10-million, or R140-million, in March 2017, as part of Tshipi é Ntle Manganese Mining’s previously announced decision to distribute R1-billion to its shareholders.
In turn, Jupiter Mines – a 49.9% shareholder in Tshipi – has resolved to distribute $55-million to its shareholders.
Pallinghurst is an 18.45% shareholder in Jupiter Mines.
Pallinghurst would consider allocating a material portion of these funds as a maiden distribution to shareholders.
Tshipi benefited from its successful production ramp-up and the strong market environment, with the price of manganese increasing from below $1.50/t in January to recent prices of above $7/t, representing a fivefold increase.
Tshipi’s optimisation of its cost base has also contributed to its expectation of record profits during its financial year ending February 28, 2017.