2 Aug 2019 12:25
Red Rock Resources plc
("Red Rock " or the "Company")
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Jupiter Mines - Update
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2 August 2019
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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.
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Jupiter owns 49.9% of the Tshipi Borwa open pit manganese mine in South Africa.
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Highlights
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路; 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)
路; 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)
路; Chinese steel production up 6.5% in 2018, with domestic Mn production continuing to fall, and new regulations for rebar requiring more silico-manganese
路; Tshipi now biggest single Mn mine in S Africa, with 9% of world seaborne Mn market
路; 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
路; EV market may start to impact demand: BASF expects 70% Mn content in its EV battery cathodes by 2021
路; 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
路; First half dividend payout so far this financial year A$0.025, with a further instalment expected at the interim stage.
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The Investor Presentation, with an analysis of the manganese market and Jupiter's place within it, can be found at www.jupitermines.com聽
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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 (拢4,251,876).
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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.
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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.
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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 拢3,177,433".
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For further information, please contact:
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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