Tshipi manganese declares ZAR330m H1 dividend

Jupiter Mines Limited has announced that the Board of Tshipi é Ntle Manganese Mining has declared a dividend to its shareholders of ZAR330 million for the first half of FY2021.

Jupiter will receive ZAR156 million (approximately A$12.7 million; net of withholding tax). Jupiter will also receive ZAR25 million (approximately A$2 million) in marketing profits.

The Tshipi Borwa Manganese Mine is located in the rich Kalahari manganese field and is the single largest manganese mine in South Africa, and third largest in the world.

Despite the COVID-19 lockdown period in South Africa which resulted in decreased production, and depressed manganese prices, Tshipi remained profitable and maintained a healthy positive cashflow.

This dividend, yet again, demonstrates the strength of Tshipi’s world class, low-cost operations throughout the cycle. The amount of the Tshipi dividend was prudent, with sufficient cash being retained for working capital, for possible capital expenditure relating to the proposed ramp up study and to mitigate the continuing challenges in the market.

The Jupiter Board will consider the dividend to Jupiter shareholders along with its half year results, due to be released by 30 October 2020.

Tshipi é Ntle Manganese Mining Proprietary Ltd (Tshipi) operates the Tshipi Borwa mine, an open pit manganese mine in the Kalahari Manganese Field (KMF) located in the Northern Cape of South Africa.

Approximately 80% of world’s known economic manganese resources are contained in the Kalahari manganese field in South Africa. The open-cut mining operation is located just north of Sishen and is adjacent to South 32’s large open-cut Mamatwan mine that has been operating for decades.

Jupiter’s Tshipi manganese ore is shipped to multiple customers around the world and based on Jupiter’s sales experience has been a highly sought-after product in the market place.

The Tshipi Mine exported a company record breaking 3.51 million tonnes of manganese ore in FY19 and production has been steadily growing over recent years. It has the flexibility to scale production between 3.0 – 3.6Mtpa.

Tshipi continues to be one of the largest and lowest cost manganese exporters globally. Strong cash margins throughout the cycle and further cost reductions are being targeted.

Tshipi’s transport infrastructure is considered one of the best in the entire Kalahari manganese field. Tshipi has the potential to load trains faster than any manganese operation in South Africa.

Jupiter Mines Limited is an independent mining company based in Perth, Western Australia. Its flagship project is the Tshipi manganese mine in South Africa. Jupiter Mines owns, through its Jupiter Kalahari subsidiary, 49% of Tshipi. Jupiter also has two iron ore development projects in the Yilgarn region of Western Australia.

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