Red Rock Resources PLC (LON:RRR) has commented on the latest news from Jupiter Mines Ltd (ASX:JMS) a company in which it holds a significant stake.
For the third quarter ended November 30, 2020, Jupiter generated A$42.1mln from its Tshipi mine, while the firm's plans for a spin-off of its Australian iron ore assets continue apace.
“Jupiter has already returned to pre-Covid activity levels, with sales in tons for the quarter up 32.2% year on year and up 27.6% quarter-on-quarter, despite difficult conditions during the quarter,” said Red Rock chairman Andrew Bell in a statement.
“The Jupiter management continues to aim at an end-February or early March date for the projected iron ore spin-off IPO. As preparations have continued, conditions in the iron ore market have been improving, and we believe that there is a reasonable prospect that the new company will be launched into a receptive marketplace,” Bell added.
Red Rock holds a royalty on the asset due to be spun out, in addition to its stake in Jupiter.
Anglo-Pacific Group PLC (LON:APF) has an obligation to purchase 0.45% of this royalty interest from Red Rock for US$8mln upon the achievement of commercial production.