The board of Tshipi é Ntle Manganese Mining has declared a dividend of R330-million for the first half of the 2021 financial year.
ASX-listed Jupiter Mines, which holds 49.9% of Tshipi, will receive R156-million of the dividend. It will also recover R25-million in marketing profits.
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, notes Jupiter.
It adds that this dividend demonstrates the strength of Tshipi’s low-cost operations throughout the cycle.
The amount of the divided was indicated as 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 markets.