We are initiating on Jupiter Mines (JMS) with a BUY rating and set an A$0.40 price target. JMS has a 49.9% interest in the Tshipi Borwa mine in South Africa, which produces ~3.3mtpa of ~37% manganese ore. Distributions from Tshipi are paid to JMS shareholders via dividend, paying out ~80% of the current market cap to date at an average dividend yield of ~10%. In the base case JMS remains an attractive dividend play, however there is potential for consolidation at the mine level and via M&A in the Kalahari Manganese Fields (KMF) with JMS having the goal of being the largest manganese producer globally. Additionally, there is optionality to monetise low-grade stockpiles by producing High Purity Manganese Sulphate Monohydrate (HPMSM) for the EV battery market.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.