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Red Rock Resources - Jupiter preliminary results and dividend declared

RNS Number : 3579L
Red Rock Resources plc
29 April 2020
 

Red Rock Resources PLC

("Red Rock" or the "Company")

 

Jupiter Mines Declares Preliminary Results, Dividend declaration,

Return to Full Operations

 

29 April 2020

 

Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and minerals, announces updates from Jupiter Mines Ltd (ASX:JMS), to which it has significant exposure through its holding of 17.02m shares.

Manganese producer Jupiter Mines has released today its Preliminary Final Report for the year ended 29 February 2020. Consolidated net profit after tax was A$95.119m compared with A$138.033m the previous year.

The average FOB Port Elizabeth price of 37% manganese ore was US$4.18 per dry metric tonne unit (DMTU) during the year, compared with US$6.00 the previous year.

The Tshipi manganese mine in the Northern Cape, 49.9% owned by Jupiter, remained one of the lowest cost manganese producers globally, with a cost of production averaging US$2.14 per DMTU FOB during the year, compared with US$2.27 the previous year.

After payment of an interim dividend earlier in the year of 4 Australian cents per share, Jupiter has declared a final dividend of 0.75 cents per share.

After the Covid-19 lockdown from midnight on 26th March, the South African Government has authorised open pit mines including Jupiter to resume full production from 1 May.

The full text of the announcements may be found on the Jupiter website at www.jupitermines.com.

Red Rock Chairman Andrew Bell comments: "Jupiter has maintained a high sales level at its 49.9% owned Tshipi manganese mine, with 3.41m tons sold, and is conducting a feasibility study on expansion to a 4.5m ton production operation. It remains a cheap, long life, well run producer that we regard as best in class.

Current manganese ore prices of $6.31 per DMTU FOB Port Elizabeth owe something to Covid-19-related shutdowns, though the price was already recovered from low end-2019 levels before the virus hit. Jupiter has shown its capacity to make money even at low manganese prices, so if anything like current prices can be maintained this will be positive for prospects. 

At the closing price of A$0.27, the dividend yield for the year just ended is 17.6%, reflecting the high payout policy of the company".  

Red Rock has 17.02m shares in Jupiter Mines, the price of which closed at AUD 0.27 per share today, valuing the Company's holding at AUD 4.59m (£2.4m).

 

For further information, please contact:

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

Mark Treharne 0203 700 2500                                                      Broker Pello Capital Limited

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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