Jupiter Mines started trading on the Australia Stock Exchange (ASX) with all attention focused on its principle asset, the Tshipi manganese mine in South Africa. Jupiter has a 49.4% interest in the mine, with the remaining interest is held by Main Street 774, a B-BBEE.
Already, there are rumors that Jupiter would like to buy out the minorities. Recently the South African High Court ruled in favor of the once empowered, always empowered principle that entitles a company to keep its black empowerment status even if a black partner exits its stake in the mining firm.
Main Street 774 is 74% owned by Ntsimbintle, also a B-BBEE company, with the remaining 26% held by OMH.
Jupiter Mines is responsible for the marketing of the Jupiter’s portion of Manganese ore from Tshipi and earns a marketing fee commission based on the total value sold by Jupiter Mines S.A. The 3% marketing fee is calculated off free-on- board revenue and is considered a strong and stable revenue stream by Jupiter,
The mine, according to Jupiter has a cash cost of $2.09 per dmtu in fiscal 2018 vs. $2.20 in fiscal 2017.
Tshipi has a three year and six month contract with Transnet which has a guaranteed rail allotment of 2.1-million mbpy from in February 2018 until 2023. Tshipi has a track record of exceeding its allocated tonnage and in fiscal 2018 Tshipi expects to transport around 2.31-million mt via Transnet out of a total of 3.64-million mt. The remaining manganese ore is trucked to the ports.