Business
Update on Jupiter Mines and Resource Star
Update on Jupiter Mines and Resource Star.
About this update from Red Rock Resources Plc
[{"type":"text","content":"\n \nRNS Number : 4574Q Red Rock Resources plc 01 September 2014 \n\nRed Rock Resources Plc\n(\"Red Rock\" or the \"Company\")\nUpdate on Jupiter Mines and Resource Star \n1 September 2014\nRed Rock Resources plc (\"Red Rock\"), the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast, is pleased to announce an update in relation to Jupiter Mines Limited (\"JMS\"), in which it holds 27,324,375 shares (1.20%), following JMS's annual meeting in Perth.\n \nHighlights\n \n· 1m ton Mn initial year production from 49% owned Tshipi Borwa mine \n· 2m ton target for current year (over 1m tons in first 5 ½ months)\n· Potentially scalable to 3.6m tons\n· Tshipi EBITDA forecast to rise from $23m to $49m (at $4.50 DMTU CIF1 price)\n· 12% market share in China seaborne Mn trade \n· Very low cost producer\n· Independent valuation of JMS Tshipi equity share of A$460m \n· JMS's Mt Mason haematite project on timeline to June 2017 production \n \n1 Dry metric tonne unit - Cost, insurance & Freight\n \n \nAt the annual meeting a presentation was given (http://www.jupitermines.com/images/jupiter---ailahquoim.pdf) with an accompanying video (https://www.youtube.com/watch?v=JiSCheSBYXM&feature=youtu.be).\n \nIn its first year of operation to 28 February 2014 JMS's 49% owned and managed Tshipi Borwa Manganese mine achieved above-target production of 1,055,087 tons of Mn, and projects 2,000,693 tons for the current year. To mid-August, production has already exceeded 1m tons. Recent lower Mn prices were partially compensated for by achieving lower operating costs, which may now be the lowest in the industry at around $2.60 DMTU FOB. Thus the operations are still profitable even at recent low market prices of $3.30 DMTU FOB. \n \nNearly 80% of Tshipi sales have been into China, where the market share achieved in Chinese seaborne Mn trade after just over a year of operation is estimated at 12%. \n \nThe operations enjoy some key advantages, including a 60 year planned life, low cost, open pit which is easily scalable, and a rail load-out station that can load a train i...