Tshipi é Ntle Manganese Mining, in which ASX-listed Jupiter Mines owns a 49.9% stake and which operates the Tshipi Borwa mine, expects to distribute R1.5-billion to its shareholders in September.
In an update on Monday, Jupiter said Tshipi’s operations continue to exceed plan with annualised production and sales for the first three months of the 2019 financial year exceeding the targeted 3.3-million tonnes a year.
This strong operating performance, along with a robust manganese price and free-on-board cost of production of $2.20/t, has resulted in stronger-than-budgeted cash generation for Tshipi of R2-billion.
Jupiter, therefore, expects to make a healthy first half-year distribution to its shareholders, well in excess of the 70% distribution policy stated in its prospectus, in September.
Jupiter shareholder, London-listed Red Rock Resources, on Monday welcomed the announcement, stating that this may result in a gross distribution by Jupiter to Red Rock of £400 000.