Jupiter Mines Dividend and Half Year Results – Planned Demerger, In Specie Distribution, and IPO of Iron Ore Assets
Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and minerals, announces, further to the update of 7 September 2020, an update in relation to its investment in Jupiter Mines Ltd (ASX:JMS)(“Jupiter”).
Jupiter has today released the following statement:
” J UPITER DECLARES H1 FY2021 DIVIDEND
Jup iter Mines Limited (“Jupiter”) (ASX: JMS) is pleased to announce an interim unfranked dividend for the half year period to 31 August 2020 (“H1 FY2021”) of $0.01 per ordinary share. This brings the cumulative payout made by Jupiter to $260 million since its ASX listing, equating to 48% of its current market capital.
Jup iter recorded a net profit after tax of $29,793,400 for H1 FY2021. Despite the restrictions and lockdown around the COVID-19 pandemic, Tshipi é Ntle Manganese Mining Pty Limited (“Tshipi”) sold 1.22 million tonnes of manganese ore, remaining profit and cash positive. Tshipi distributed ZAR300 million to its shareholders for the H1 FY2021 period.
The interim dividend record date is 4 November, and the dividend will be paid on 18 November.”
1. Metal Bulletin FOB per dmtu, 37% Port Elizabeth.
2. Yield based on closing share price on date of each dividend declaration
3. Yield based on closing share price as at 27 October 2020.
A further announcement by Jupiter sets out in full the Half Year results for Jupiter for the six months ending 31 August 2020.
A further announcement by Jupiter announces the planned demerger and IPO of the Jupiter iron ore assets, with a pro rata in specie distribution of shares in the new company to existing Jupiter shareholders:
“INTENTION TO DEMERGE JUPITER IRON ORE ASSETS
Jupiter Mines Limited (“Jupiter”) (ASX.JMS) announces that the Board has unanimously approved a demerger of its Central Yilgarn Iron Ore assets (“CYIP”) and subsequent initial public offering (“IPO”), subject to all statutory approvals.
The demerger will create an ASX listed company, to be named at a later date (“NewCo”), which will work to progress the development of the Mount Mason DSO hematite project as its primary focus in the near term.
The demerger will be achieved via a distribution of NewCo shares in-specie to Jupiter shareholders, in proportion to their existing shareholding in Jupiter.
Jupiter shareholders will also be offered the opportunity to acquire further shares in NewCo above their in-specie allocation. Jupiter will retain a minority holding in NewCo. Subject to all approvals, the demerger and listing is expected to be completed in the first quarter of 2021. Full details and timetable will be announced in due course.
As previously announced, Jupiter has appointed Greg Durack as the Chief Executive Officer to lead the IPO and implement NewCo’s strategy. Greg will also serve as an executive director of NewCo. Other board appointments will be made shortly. NewCo will be headquartered in Perth, to maintain proximity to the CYIP assets.
Post the demerger, Jupiter will become a pure-play manganese company, with the aim to continue to maintain its strong balance sheet and high payout ratio”.
The full text of these announcements may be found at www.jupitermines.com
Red Rock Chairman Andrew Bell comments : “Demand for manganese continues strong, with Chinese steel production for the first nine months of the year running 6.8% above 2019 levels. Jupiter has been able to recover fast from Covid-19- related stoppages as Transnet, the South African rail and port utility, was back to normal operation levels by the end of Jupiter’s half year reporting period to August.
As noted in the announcement of 7 September, a cautious view was taken by Tshipi in considering its dividend declaration, given the prevailing uncertainties, and this is reflected in turn in the money available for payout by Jupiter at this interim stage. Jupiter has a dividend policy of a 70% payout and has historically exceeded this, paying out around 90%.
Red Rock welcomes the planned demerger of Jupiter’s iron ore assets, and to receiving its share of the in specie distribution of NewCo shares. As the holder of a royalty over Jupiter’s Mt Ida iron ore asset, Red Rock would be a major beneficiary of any success by NewCo in the development of this Resource.
After the recent appreciation of the Company’s holding in Power Metal Resources plc, the Company’s listed holdings, which include the holding in Jupiter, have a current value of approximately £2.75m.”
Jupiter’s Central Yilgarn Iron Ore Project consists of (a) the Mt Ida magnetite deposit, where a 1.23 bn ton JORC compliant Indicated Resource of 29.79% Fe in its Central Zone, capable of beneficiation to a 66.65% concentrate, and a JORC compliant Inferred Resource of 615m tons at 28.86% in the Northern and Southern Zones, was announced by Jupiter on 8 January 2013, and (b) the Mt Mason DSO haematite deposit, where Jupiter announced a 5.9m ton Measured and Indicated Resource of 60.1% ore on 30 January 2012.
Red Rock has a holding in Jupiter Mines valued currently at approximately AUD 3.8m. The Company also has a 1.3% gross revenue royalty over the Mt Ida iron ore project. Anglo-Pacific Group plc has an obligation to purchase 0.45% of this royalty interest from Red Rock for $8m upon the achievement by Jupiter of certain milestones in relation to Mt Ida, namely (a) a definitive feasibility study and decision to proceed, and (b) commercial production.
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