Proactiveinvestors Australia Jupiter Mines Limited https://www.proactiveinvestors.com.au Proactiveinvestors Australia Jupiter Mines Limited RSS feed en Thu, 23 May 2019 13:57:38 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Jupiter Mines welcomes AMCI purchase of additional 7.44% stake ]]> https://www.proactiveinvestors.com.au/companies/news/218724/jupiter-mines-welcomes-amci-purchase-of-additional-744-stake-218724.html Jupiter Mines Ltd (ASX:JMS) has welcomed an additional investment by AMCI Euro Holdings BV which has acquired the 7.44% stake previously held by Pallinghurst Consolidated (Cayman) Limited (PCCL).

AMCI has been a long-term supportive shareholder of Jupiter and the company’s Tshipi Borwa Manganese Mine in South Africa since its inception.

This company is already represented on the Jupiter share register by HJM Jupiter LP and FRK Jupiter LP.

READ: Shares in Jupiter Mines are yielding more than 20%, with manganese production going strong at the Tshipi mine

PCCL is a wholly-owned subsidiary of Gemfields Group Ltd (JSE:GML) (OTCMKTS:PLLHF) and the transaction is consistent with Gemfields’ strategy to focus on African coloured gemstones.

AMCI has agreed to purchase PCCL’s entire stake in Jupiter which equates to almost 146 million shares for total consideration of more than A$44.24 million in cash.

Jupiter has thanked PCCL for its support over the last 10 years.

Gemfields’ chief executive officer Sean Gilbertson said: “I believe that the price achieved for the sale is fair, being approximately 2.4% below the 30-day VWAP and approximately 2.5% above Friday’s closing Jupiter share price.

“The sale of our Jupiter shares also enables the directors to realise their ambition of making a maiden distribution to shareholders.”

Tshipi Borwa is world’s third largest

Jupiter has a 49.9% beneficial interest in Tshipi é Ntle Manganese Mining (Pty) Limited, which operates the Tshipi Borwa mine in the southern portion of the rich Kalahari manganese field.

The operation is the single largest manganese mine in South Africa and third largest in the world.

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Wed, 17 Apr 2019 10:38:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218724/jupiter-mines-welcomes-amci-purchase-of-additional-744-stake-218724.html
<![CDATA[News - Shares in Jupiter Mines are currently yielding more than 20%, with manganese production going strong at the Tshipi mine ]]> https://www.proactiveinvestors.com.au/companies/news/217764/shares-in-jupiter-mines-are-currently-yielding-more-than-20-with-manganese-production-going-strong-at-the-tshipi-mine-217764.html “This is the single biggest mine in South Africa,” says Priyank Thapliyal of Jupiter Mines LTD (ASX:JMS). “Whichever way you slice and dice it it’s been a great success.”

Certainly, there’s no arguing with the production figures at the Tshipi manganese mine in Northern Cape Province, which is part-owned by Jupiter.

This year, says Thapliyal, production is likely to hit 3.5mln tonnes, around 40-50% higher than was envisaged in the feasibility study. Costs are lower than predicted too, resulting in some chunky cashflow and, what’s more notable, a very sizeable dividend.

Indeed, with the current yield running at around 20%, it’s hard not to do a double take.

Something’s up here, surely? Perhaps the shares are discounted because of some bad news the yield has not yet caught up with?

But no. It is the market that hasn’t caught up, wrong-footed by the outlandish size of the yield, and cautious about the short track record as a listed entity that Jupiter has behind it.

There’s also the question of liquidity. Not many shares actually change hands on the public markets, as some of the original cornerstone investors remain locked in after the A$240mln IPO in Australia last year.

At the time, Thapliyal notes, raising the money to list was pretty easy.

The quality of the project, he says, spoke for itself. After all, although the listing is new, the operation isn’t. The Tshipi mine shipped its first ore in 2012, and has gone on to break production record after production record, such that in the last three years Jupiter has been able to hand back a whopping A$300mln to shareholders.

All this meant that when Thapliyal was seeking institutional investment, the fund managers were only too keen to get on board. At the time of listing, around A$215mln of the market capitalisation was accounted for by institutional investors, with just A$25mln available as free float.

That strong institutional endorsement is backed up by the support of some mining heavy hitters on the board too. Brian Gilbertson, famously the ex-chief executive of BHP Billiton, as it then was, is chairman. Another director is Yeongjin Heo, the head of POSCO Australia, which holds a significant stake in Jupiter. And Andrew Bell, of Red Rock Resources PLC (LON:RRR) and African Battery Metals PLC (LON:ABM), also holds a seat on the board.

It’s an experienced team, running a company on a lean basis, with the focus on generating returns for shareholders.

Still, with all that institutional interest, it is hard for retail to get a look in, and the paradox may well be that because the yield is so good, no one is hitting the offer button, which means the shares aren’t really trading that much.

“The liquidity is very low,” concedes Thapliyal. “There are 2bn shares, but only a few million get traded. The stock is very sticky. Once investors buy in they tend to put it in their bottom drawer.”

So, for interested parties it’s a question of getting in where and when you can.

There’s little doubt of the opportunity that’s on offer. South Africa is one of the world’s great mining destinations, and the Tshipi mine is fully compliant with all the relevant empowerment legislations.

What’s the operation itself is very simple.

“We drill and blast, shovel the ore into a truck and take it to Port Elizabeth,” says Thapliyal.

“There’s no blending, there’s no beneficiation.”

All of which means that the margin on offer is substantial and the returns for shareholders significant. For the full year to 28 February 2019 Jupiter shareholders are in line for an A$147mln payout, following an A$82mln payout for full year 2018.

The cash should keep on coming too. For one thing, Tshipi has a 100 year mine life, so there’ll be no stopping it on that score.

But for another, the outlook for manganese is good.

“Manganese is a play on steel,” says Thapliyal.

“Every tonne of steel requires manganese, it can’t be substituted. And the amount of manganese that’s legally required in Chinese rebar has just been raised.”

Meanwhile, major sources of manganese production from South32 are likely to cease operating within the next ten years, giving a strong underpinning to the mid-to-long-term price.

 

 

 

 

 

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Tue, 02 Apr 2019 12:50:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217764/shares-in-jupiter-mines-are-currently-yielding-more-than-20-with-manganese-production-going-strong-at-the-tshipi-mine-217764.html
<![CDATA[Media files - Jupiter Mines celebrates one year on the ASX ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12688/jupiter-mines-celebrates-one-year-on-the-asx-12688.html Thu, 21 Mar 2019 15:58:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12688/jupiter-mines-celebrates-one-year-on-the-asx-12688.html <![CDATA[News - Jupiter Mines continues to deliver strong returns to shareholders ]]> https://www.proactiveinvestors.com.au/companies/news/214843/jupiter-mines-continues-to-deliver-strong-returns-to-shareholders-214843.html Jupiter Mines Ltd (ASX:JMS) has announced a final unfranked dividend of 2.5 cents per share for FY2019.

The dividend record date is May 7, 2019 and will be paid on May 21, 2019.

Jupiter chief executive officer Priyank Thapliyal said: “Jupiter continues to deliver healthy returns. The yield on distributions by Jupiter since FY2017 are unprecedented in the mining industry, with the dividend yield for FY2019 being approximately 24%.”

 

Thapliyal added: “Over the last three years, A$300 million has been paid out to shareholders, equating to approximately 50% of Jupiter’s market capitalisation.

“This is very compelling considering Tshipi’s 100 year mine life”.

It is worth noting that since listing, Jupiter has far exceeded its stated 70% payout dividend policy.

Given the quality of its Tshipi managanese mine in South Africa, as demonstrated below, Jupiter aims to be a high dividend paying company throughout the cycle:

• One of the largest manganese exporters globally;
• One of the lowest cost manganese mines;
• Abundant resource for a 100 year life of mine;
• 5 million tonnes per annum load out infrastructure capacity; and
• Well established product.

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Tue, 19 Feb 2019 17:32:00 +1100 https://www.proactiveinvestors.com.au/companies/news/214843/jupiter-mines-continues-to-deliver-strong-returns-to-shareholders-214843.html
<![CDATA[Media files - Jupiter Mines Ltd focused on continuing to deliver hefty dividends to investors ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10729/jupiter-mines-ltd-focused-on-continuing-to-deliver-hefty-dividends-to-investors-10729.html Thu, 04 Oct 2018 11:10:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10729/jupiter-mines-ltd-focused-on-continuing-to-deliver-hefty-dividends-to-investors-10729.html <![CDATA[News - Jupiter Mines: Former BHP chief looks to re-list manganese business after four years away from the market spotlight ]]> https://www.proactiveinvestors.com.au/companies/news/192883/jupiter-mines-former-bhp-chief-looks-to-re-list-manganese-business-after-four-years-away-from-the-market-spotlight-192883.html More details have emerged regarding the proposed re-float of former BHP Billiton (ASX:BHP) chief Brian Gilbertson’s Jupiter Mines.

According to the Western Australian newspaper, the group has hired Perth-based broker Harleys to test the market.

The plan reportedly is to raise $200 million at 40 cents a share. This would value the miner at $780 million. 

Main asset in South Africa

The company’s main asset is a 49% stake in the Tshipi manganese deposit in South Africa.

It also owns the Central Yilgarn iron ore project 110km north-west of Menzies, which includes the Mt Mason hematite and the Mt Ida magnetite operations.

Jupiter’s shares stopped trading on the ASX in January 2014 after its main shareholders, led by Gilbertson’s business Pallinghurst, decided the natural resources group wasn’t being fairly valued amid the downturn.

As the Australian Financial Review pointed out in an article late last year this turned out to be a prescient move, with manganese prices continuing to slide until early 2016 before supply curtailments sparked a strong recovery in prices.

Investors rewarded

Since then Jupiter has tripled manganese production to around 3 million tonnes, allowing $100 million to be returned to investors.

On a visit to Sydney last year, the miner’s chief executive, Priyank Thapliyal, told the AFR: "It is good to give a lot of profit back to the shareholders as buybacks or dividends but you also want to give them an option to trade in and out of the company … the listing will give them that currency.

"I would hope that they will still hold onto their shares because we will try to make this company bigger and better by buying into other projects." 

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Fri, 09 Mar 2018 08:48:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192883/jupiter-mines-former-bhp-chief-looks-to-re-list-manganese-business-after-four-years-away-from-the-market-spotlight-192883.html