Jupiter Mines’ (ASX:JMS) Tshipi operator declares $8.4m half-year dividend

• The operator of Jupiter Mines’ (JMS) Tshipi Manganese Mine in South Africa declares a shareholder dividend of ZAR88 million (A$8.4 million) for H1 FY22
• Jupiter says the dividend is a cautious amount given the sustained depression of manganese prices and significant increases to shipping rates
• But JMS says despite these challenges, its mine’s operator has maintained low production costs and continues to deliver on its sales tonnages
• Jupiter Mines shares are up 1.04 per cent at 24.3 cents at 11:37 am AEST

Tshipi é Ntle Manganese Mining, the operator of Jupiter Mines’ (JMS) Tshipi Bowra Manganese Mine in South Africa, has declared a dividend of ZAR88 million (A$8.4 million) for the first half of the 2022 financial year (FY22).

The mine is in the Kalahari manganese field, where around 80 per cent of the world’s known economic manganese resources are contained.

Following the announcement, Jupiter is set to receive ZAR41.7 million (A$3.8 million) net of withholding tax and ZAR33 million (A$3 million) in marketing profits.

In a statement today JMS said the Tshipi dividend was a cautious amount, given a sustained depression in manganese prices and significant increases to shipping rates.

Meanwhile, the mine’s operator will retain ZAR517 million (A$49.4 million) for its cash floor and working capital outflow, and a further ZAR82 million (A$7.8 million) for remaining FY22 capital expenditure.

Jupiter said despite facing challenging conditions, Tshipi had maintained its low cost of production and continued to deliver on its sales tonnages, having distributed more than ZAR9.3 billion (A$89 million ) to its shareholders.

JMS said its board would consider the dividend to Jupiter shareholders along with its half-year results.

Jupiter Mines shares were up 1.04 per cent at 24.3 cents at 11:37 am AEST.