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Red Rock Resources notes announcement by investee Jupiter Mines regarding Tshipi dividend

The board of Tshipi, where Jupiter has a 49.9% stake, has declared a final dividend

Red Rock Resources PLC - Red Rock Resources notes announcement by investee Jupiter Mines regarding Tshipi dividend

Red Rock Resources PLC (LON:RRR) noted an announcement by investee Jupiter Mines Limited (ASX:JMS) which said that the board of Tshipi has declared a final dividend.

Shareholders will receive a total of 1.1bn South African rand (ZAR), which corresponds to £54mln, with Jupiter receiving ZAR521.5mln (£25mln).

WATCH: Red Rock Resources raise £1mln to advance projects in Australia, Kenya and Congo

The Australian firm will also receive ZAR30.6mln (£1.5mln) in marketing profits.

Jupiter said that Tshipi has demonstrated its abilities to continue to remain profitable and cash positive despite the COVID-19 pandemic, mining challenges, excessive rain and depressed manganese prices.

Tshipi will end financial year 2021 with ZAR1.7bn (£84mln) cash at bank, while its board has not yet made a decision on the expansion study in light of further areas of the study to be explored.

Jupiter, which owns 49.9% of Tshipi, said it will consider the dividend to its own shareholders along with its full year results.

"As a Jupiter shareholder, Red Rock welcomes this evidence that Tshipi profitability has recovered well from the impact last year of Covid-19 on South Africa,” said Red Rock chairman Andrew Bell in a statement.

“The trend of Tshipi dividend announcements since 2019 shows the impact of a dip in manganese prices followed by the impact of Covid shutdowns, and the subsequent recovery.”

“This augurs well for Jupiter's final dividend declaration, given the high payout ratio that Jupiter has historically adopted."

Red Rock has a 0.7% holding in Jupiter Mines valued currently at £2.7mln.

Shares in Red Rock rose 2% to 1.1p on Thursday morning.

Quick facts: Red Rock Resources PLC

Price: 1.025 GBX

AIM:RRR
Market: AIM
Market Cap: £10.95 m
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