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JOHANNESBURG - Pallinghurst mining company Jupiter Mines yesterday announced the terms of an off-market equal access share buy-back to which it intends to return $42million (R510m) to its shareholders, underscoring its strong cash-generation ability. 

Jupiter said all shareholders would be made an equal offer to have 5.82percent of their Jupiter shares repurchased, at a price of $0.35 per Jupiter share. 

Pallinghurst Resources, which owns about 18.4percent of Jupiter, stands to receive almost $8m in March. The buy-back follows Jupiter’s $55m share buy-back in March last year and a further $25m share buy-back in November. The buy-back is primarily being funded by Jupiter’s 49.9percent share of a R1.1billion distribution from the Tshipi e Ntle manganese mine, along with the profits earned by Jupiter’s manganese marketing business. 

Jupiter owns a 49.9percent interest in the Tshipi in the Kalahari Manganese Field in the Northern Cape. Jupiter also announced that Tshipi expects to close its financial year to February 28, 2018, with a record 3.3 million tons of sales, record earnings before interest, tax, depreciation and amortisation (Ebitda) of about $250m and record net income of about $160m. Pallinghurst chief executive Arne Frandsen said Tshipi’s strong performance had seen it almost double its distribution, which was announced just last month. 

“Jupiter has exceeded expectations in every way, with Tshipi expected to have record manganese sales, record Ebitda and record net income for its financial year,” Frandsen said. “The sustained production increase at Tshipi, along with strong profitability, are providing the perfect platform as Jupiter looks to relist on the Australian Securities Exchange.” 

Last month, Jupiter said it was looking to relist on the Australian Securities Exchange in the first three months of this year with a market capitalisation that could be worth nearly 1bn (AUD)

- African News Agency (ANA)