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Jupiter launches $42m buyback; Pallinghurst to receive $8m

22nd January 2018

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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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.

Edited by Creamer Media Reporter

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