Red Rock Resources plc Jupiter Mines - Update (9150Y)
07 Gennaio 2020 - 8:00AM
UK Regulatory
TIDMRRR
RNS Number : 9150Y
Red Rock Resources plc
07 January 2020
Red Rock Resources plc
("Red Rock " or the "Company")
Jupiter Mines - Update and Expansion
7 January 2020
Red Rock Resources Plc, the natural resource development company
with interests in gold and battery metal and steel feed materials,
announces that Jupiter Mines Limited ("Jupiter", ASX:JMS), an
Australian public company in which Red Rock holds 17,024,914 shares
(0.87%) and which owns 49.9% of the Tshipi Borwa manganese mine in
South Africa, has released a statement, the text of which is set
out below, to the Australian Stock Exchange:
"TSHIPI EXPANSION CONCEPT STUDY COMPLETED
Jupiter Mines Limited ("Jupiter" or "the Company") (ASX: JMS) is
pleased to announce that the concept study into the expansion of
the Tshipi Borwa Manganese Mine has been completed. A comprehensive
feasibility study will commence shortly.
The feasibility study will be based on a production profile of
4.5 million tonnes (the "Base Case Scenario"), a 50% increase on
the current 3 million tonne production level.
Production profiles in excess of the Base Case Scenario were
explored as part of the concept study, however the infrastructure
required is significantly less complex, will involve a shorter
timeframe to implement, has a lower capital requirement, there is
less reliance on road transport and the legal requirements are
significantly more favourable from a timing perspective for the
Base Case Scenario.
Some of the major constraints to go beyond the Base Case
scenario include potential mining constraints, the lack of water in
the area and logistical constraints in the medium term.
Infrastructural optionality will be considered for substantial
production upside beyond the Base Case Scenario, to be leveraged
upon in the future, should the constraints and market dynamics
change.
Total capital expenditure required for the expansion is
estimated to be R1.025 billion (+- 30% level of confidence). This
expenditure provides for some of the infrastructure required for
the production optionality mentioned above.
Subject to the completion of the feasibility study and
commercial process (approximately 1 year), Tshipi would expect to
reach steady state exports of 4.5 million tonne in 3 years, with an
increase in manganese ore exports in year 2 and year 3, via a
stepped approach".
Andrew Bell, Chairman, comments: "A potential 50% production
increase over 3 years is one of a number of encouraging
developments at Jupiter, which continues its drive to improved
efficiencies and stringent cost control.
Jupiter has over the last 18 months exceeded its benchmark 70%
dividend payout ratio, and the significant strengthening in the
manganese price over the last two months testifies to the
resilience of underlying demand.
The Company expects a continued growth over time in the level of
contributions received from its holding in Jupiter."
Note:
The closing price of Jupiter shares in the market is A$0.29 per
share as at 6(th) January 2020, and the A$0.04 per share (A$680,996
to Red Rock) interim dividend paid in November 2019 represents a
six month yield of 13.8% at that price.
The full year dividend for Jupiter's year to 28 February 2019
was A$0.075, representing a 25.9% yield at the current price.
Jupiter 3(rd) quarter results to 30 November 2019 noted that
sales were on track to meet the target for the year, and that cash
stood at A$93m at the end of the quarter and after payment of the
interim dividend.
Further details on Jupiter announcement may be found at
www.jupitermines.com
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
Tim Sohal 0203 700 2500 Broker Pello Capital Limited
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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