Red Rock Resources PLC (LON:RRR) has got some good news from Australian explorer Jupiter Mines Limited (ASX:JMS) which is set to receive a big dividend payment from its investment in the Tshipi manganese mine in South Africa.
AIM-listed Red Rock holds a 0.95% stake in Jupiter, which in turn owns 49.9% of the Tshipi mine as part of a joint venture with OM Holdings Limited (ASX:OMH) and Ntsimbintle Holdings.
In an stock exchange announcement, Jupiter revealed that production at Tshipi is on track to deliver its 3mln tonnes sales target. As a result, the Tshipi board plans to return A$116mln to its shareholders at the end of June, of which Jupiter stands to receive around A$58mln
The Australian firm said it would, therefore, be making a “healthy distribution” to its shareholders in November when it is due to release its half-year results.
It added the payment would be “in line with double-digit yields and exceeding the company’s pay-out policy”.
Red Rock chief executive Andrew Bell said: “Having recently received a final dividend for Jupiter's year ended 28 February of US$319,554.77, we are pleased to see the continuing strong cash generation at Jupiter and the board's discipline in maintaining the high dividend yield policy,”
“With its open pit production and hundred-year mine life at what is now South Africa's biggest mine, Jupiter continues to be one of the leading low-cost producers globally,” Bell added.
Red Rock shares were down 1% to 0.52p on Thursday morning.