Red Rock Resources notes that Jupiter Mines Ltd said 49.9%-owned associate Tshipi e Ntle Manganese Mining Proprietary Ltd has resolved to distribute ZAR 1bn to its shareholders in respect of the year ending 28 February 2017.
This was subject to there being no material change in production and market conditions for the rest of the financial year.
Jupiter, in which Red Rock owns 27.3m shares, has resolved on receipt of its portion of this payment to distribute $55m to its own shareholders.
- $55m distribution by Jupiter means a US$658,350 (c.£530,000) distribution to Red Rock
- Distribution will be payable in March 2017
- Jupiter expects further distributions in 2017 if manganese price continues strong
- Production in year to February 2017 will comfortably exceed near 2m t target
- Tshipi distribution repays shareholders 50% of capital cost of mine with over 60 years mine life remaining
- Jupiter to pursue "strategic options" for its investment.