Red Rock Resources PLC (LON:RRR) has noted the latest update from Jupiter Mines, which owns 49.9% of the Tshipi manganese mine in South Africa.
As long as the manganese price stays robust, Tshipi intends to pay R1bn (£55mln) in a final dividend of which Jupiter intends to distribute close to all of its share.
READ: Red Rock Resources swings to full-year profit as it eyes increased gold income in new year
ASX-listed Jupiter's attributable cash was A$96mln at the end of the quarter.
Red Rock has a 0.95% stake in Jupiter and received an interim dividend payment of 0.5c per share earlier in the year.
Andrew Bell, Red Rock’s chairman, said: "Jupiter continues to generate strong cash flow and solid results and its distribution policy makes it a valuable high yielding asset for Red Rock.
“The CIF manganese price achieved remained strong at $6.43 DMTU during the quarter."
Red Rock has also completed the purchase of 50.1% of a joint venture looking for cobalt and copper in the DRC.
The junior paid £490,000 in shares with a further £250,000 due early in the New Year.
“We are forming a very positive impression of the potential from the data we are assembling,” said Bell.
In early morning trading, Red Rock shares were 4% higher at 0.65p.
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