Red Rock Resources PLC (LON:RRR) has flagged up strong results from investee company, Jupiter Mines Ltd, an Australian-listed miner that owns nearly 50% of the Tshipi Borwa open pit manganese mine in South Africa.
Jupiter, in which Red Rock holds a 0.95% stake, held its general meeting for the year ended 28 February 2019 that highlighted sales in line with its target, firm manganese prices, growth in Chinese steel production and a 71% rise its shares since the year of last year.
Red Rock chairman Andrew Bell said 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 dvidend stream this year,” he said.
“We expect organic growth and consolidation of its interests to drive the business over the next four or five years, with enterprise value materials potentially providing a significant source of incremental demand at the end of that period.
“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 £3,177,433.”