Red Rock Resources - Jupiter Mines - Update
("Red Rock " or the "Company")
Jupiter Mines - Update and Expansion
"TSHIPI EXPANSION CONCEPT STUDY COMPLETED
Jupiter Mines Limited ("Jupiter" or "the Company") (ASX: JMS) is pleased to announce that the concept study into the expansion of the
The feasibility study will be based on a production profile of 4.5 million tonnes (the "Base Case Scenario"), a 50% increase on the current 3 million tonne production level.
Production profiles in excess of the Base Case Scenario were explored as part of the concept study, however the infrastructure required is significantly less complex, will involve a shorter timeframe to implement, has a lower capital requirement, there is less reliance on road transport and the legal requirements are significantly more favourable from a timing perspective for the Base Case Scenario.
Some of the major constraints to go beyond the Base Case scenario include potential mining constraints, the lack of water in the area and logistical constraints in the medium term.
Infrastructural optionality will be considered for substantial production upside beyond the Base Case Scenario, to be leveraged upon in the future, should the constraints and market dynamics change.
Total capital expenditure required for the expansion is estimated to be R1.025 billion (+- 30% level of confidence). This expenditure provides for some of the infrastructure required for the production optionality mentioned above.
Subject to the completion of the feasibility study and commercial process (approximately 1 year), Tshipi would expect to reach steady state exports of 4.5 million tonne in 3 years, with an increase in manganese ore exports in year 2 and year 3, via a stepped approach".
Jupiter has over the last 18 months exceeded its benchmark 70% dividend payout ratio, and the significant strengthening in the manganese price over the last two months testifies to the resilience of underlying demand.
The Company expects a continued growth over time in the level of contributions received from its holding in Jupiter."
The closing price of Jupiter shares in the market is
The full year dividend for Jupiter's year to
Jupiter 3rd quarter results to
Further details on Jupiter announcement may be found at www.jupitermines.com
For further information, please contact:
Scott Kaintz 0207 747 9990 Director
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD
Tim Sohal 0203 700 2500 Broker
This information is provided by RNS, the news service of the
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