Jupiter’s flagship asset, Tshipi, is the largest exporter of manganese ore from South Africa and a top-5 producer globally. Manganese is a key component of steelmaking and South Africa hosts approximately 80% of the world’s known economically mineable resources.
In 2007, The Pallinghurst Group was approached by a Black Economic Empowerment company that had rights over the manganese deposit known as “Tshipi”, located in the Kalahari Manganese Basin of South Africa, the largest manganese region in the world. They sought The Pallinghurst Group’s expertise to develop the project.
Having a detailed knowledge of this region (and Tshipi itself) and its geology, The Pallinghurst Group provided development capital and management expertise and secured a 49.9% joint controlling position in the asset.
Subsequently, The Pallinghurst Group introduced POSCO, one of the world’s largest steelmakers, which acquired a stake from The Pallinghurst Group and provided incremental end-user expertise to the project.
The Pallinghurst Group advanced Tshipi through the development stages from pre-feasibility through to completion, ramp-up and to steady state production in only five years. Tshipi is now one of the world’s largest, lowest cost and most valuable manganese mines, with over 100 years of resources available.
The mine is highly cash generative and has returned approximately twice the capital cost of the mine to shareholders within just six years of production. The Pallinghurst Group delisted Jupiter in 2014, and as an unlisted company Jupiter returned over US$100 million to its shareholders. The Pallinghurst Group subsequently relisted Jupiter on the ASX in 2018 returning a further A$240 million to shareholders at a market capitalisation of US$600 million (A$780 million), realising 35% of the investment and providing significant returns to its investors.
In 2019, Jupiter averaged a dividend yield of 20% per annum, one of the best mining stock yields worldwide. The strong dividends and The Pallinghurst Group’s experience and knowledge of the asset is likely to further enhance the already significant return profile of this investment.
For more information on Jupiter Mines, please visit: www.jupitermines.com