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Red Rock set for ‘healthy’ dividend payment from Jupiter Mines later this year

Jupiter Mines is set to receive a dividend of around A$58mln from its investment in the Tshipi mine next month, which it will pass on to its own shareholders, including Red Rock, later in the year
tshipi mine
Red Rock’s 0.95% stake in Jupiter is worth around A$6.3mln

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.

READ: Red Rock Resources takes Jupiter write-down but gets hefty dividend

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.

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