Red Rock Resources PLC (LON:RRR) has highlighted an update from its investee, Jupiter Mines Ltd (ASX:JMS), on its planned iron ore spin off and a dividend.
Jupiter said in a statement that it has approved progressing the execution of an initial public offering (IPO) of its Central Yilgarn Iron Ore (CYIP) assets in Western Australia.
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The company said the IPO will “crystallise value form the CYIP assets” through a three-pronged strategy that includes the development of the Mount Mason DSO Hematite project on a fast track basis, a consolidation platform for growing the existing DSO resource base, and the exploration of creative options to advance the Mount Ida Magnetite project in the mid-term, leveraging upon the existing rail and port infrastructure and the dwindling DSO resources in the Yilgarn.
Jupiter also announced that its operating entity in South Africa, Tshipi é Ntle Manganese Mining Proprietary Limited, has declared a dividend to its shareholders of around 330mln South African Rand, of which Jupiter will receive 156mln Rand (A$12.7mln) alongside 25mln Rand (A$2mln) in marketing profits.
The company added that despite the coronavirus lockdown in South Africa, which resulted in decreased production and depressed manganese prices, Tshipi remained profitable and maintained a “healthy positive cashflow”, and that the dividend payment demonstrated “the strength of Tshipi's world class, low-cost operations throughout the cycle”.
Jupiter also said its board will consider a dividend to its own shareholders in its half year results.
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