REG - Red Rock Resources - Announcement by Jupiter Mines

Red Rock ResourcesAnnouncement

18/06/2018 11:25

RNS Number : 7164R
Red Rock Resources plc
18 June 2018
 


Red Rock Resources plc
 
("Red Rock " or the "Company")
 
Announcement by Jupiter Mines
 
18 June 2018
 
Red Rock Resources Plc, the natural resource development company with interests in gold and steel feed materials, announces that Jupiter Mines Limited ("Jupiter", ASX:JMS), an Australian public company in which Red Rock holds 18,524,914 shares (0.95%), has released an update which reads as follows:
 
"Recent Tshipi Operating Performance
 
Tshipi's operations continue to exceed plan with annualised production and sales for the first three months of FY2019 exceeding the 3.3 million tonnes per annum target.
 
The strong operating performance of Tshipi, the robust manganese price (currently around
USD5.50/dmtu¹ FOB), along with FOB cost of production at around US$2.20/dmtu, has resulted in stronger than budgeted cash generation.
 
Distribution
 
Tshipi's cash is forecast to reach ZAR2 billion by the end of August 2018, based on sales concluded till July 2018. Accordingly, Tshipi's Board has resolved, subject to no adverse developments, to distribute ZAR1.5 billion to its shareholders in September 2018. Jupiter accordingly expects to make a healthy first half-year distribution to its shareholders in September 2018, equivalent to the cash received from Tshipi, well in excess of the 70% distribution policy stated in the Company's prospectus.
 
Chief Executive Officer Update
 
Priyank Thapliyal has been discharged from hospital, and is continuing his recovery at home.
Throughout his absence operations at Tshipi and Jupiter have continued smoothly under the leadership of the well-established Tshipi and Jupiter management teams.
 
1. Manganese Ore Index 37% Price (FOB Port Elizabeth/US$ per dmtu)"
 
A copy of the Jupiter announcement may be found on the Jupiter website, www.jupitermines.com and on the ASX website www.asx.com.au/asx/shre-price-research/company/JMS 
 
Red Rock Chairman Andrew Bell comments: "We are pleased to report that Jupiter continues to exceed expectations. While this is not the formal announcement of a dividend by Jupiter, were the distribution to be at the level Jupiter expects it would be equivalent to an approximate 10% gross yield at the interim stage to Jupiter shareholders and a gross distribution to Red Rock of a sum in the order of £400,000.
 
Distribution in full of the amounts received from Tshipi would also be a sign of Jupiter's confidence that the strong performance of its business would continue." 
 
Notes:
 
Jupiter owns 49.9% of Tshipi é Ntle Manganese Mining (Pty) Ltd, the owner of the Tshipi Borwa manganese mine, referred to herein as Tshipi. The closing price of Jupiter on the Australian Stock Exchange on 15 June 2018 was AUD 0.35 per share. 
 
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
 
For further information, please contact:
 
Andrew Bell 0207 747 9990                                                       Chairman Red Rock Resources Plc
Scott Kaintz 0207 747 9990                                                        Director Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396         NOMAD Beaumont Cornish Limited
Jason Robertson 0207 374 2212                                                Broker First Equity Limited




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