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JMS - Jupiter Mines

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It's still a bit early as far as the IPO of Jupiter Mines is concerned. The company plans a return to the ASX in March or April 2018. You can keep up to date by following this link: http://www.jupitermines.com

There is a lot of interest from the UK generated by micro-cap Red Rock Resources PLC LSE:RRR that holds 1.19%. Six major holders have over 86% and act together as Pallinghurst Co-Investors. The big six are presently in discussions and expected to announce the outcome shortly.
Rumours have it that some of the largest holders are reluctant to release shares for the IPO.
 
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Monday 19th February is the closing day to accept the 5.81% share buyback at A$0.44 per share.
 
Jupiter Mines Limited ASX:JMS. Returning to the ASX on Thursday 19th April after 4 years and 3 months as a private company. Sale now on at 40c a share against the suspension price of just 8.1c, happy days again.
Expectations are running high as the manganese price has trebled.
 
The return to ASX as JMS is on the 18th April and applications close on 10th April 2018. Shares look cheap with no debt and their major asset Tshipi throwing off cash.
 
Jupiter Mines JMS, are on a $780m market cap at 40c a share with OM Holdings at $996m market cap at $1.35. Looks like the year 2018 IPO give away - however, you can never be sure to be sure.
 
The IPO closed at 5pm AEST on Tuesday 10th April. Target price is 50c - 55c, trading due to start on 18th April.
 
Should be the most exciting share next week as it returns to the ASX Wednesday having left in January 2014 at a closing price of 8.1c. Could be exciting with lots of stale bulls and Institution wanting to add more on the over-subscription.
 
Closed at the IPO price of 40c as some large trades came in.

The shares trade on a 9.75% yield based on buybacks and dividends in 2017/2018 at 40c a share. Distributions have totalled $76 million in the past 12 months. Market cap at 40c is $779 million.

Many foreign shareholders found trading impossible and some Aussie accounts had difficulties.
 
Careful as it goes. Trading everywhere OK now and a bit disappointing as shares at 41.5c give a yield on last years payouts of over 9%. Jupiter will payout 70% of profits to shareholders next year and Tshipi are set to increase payouts to JMS if the manganese price remains buoyant. Jupiter also have a marketing side for it's manganese that is highly profitable.
 

Jupiter have now confirmed a payment to be made in September/October 2018 from proceeds to be received from Tshipi. In the current Tshipi half year the average price to end of April for the Manganese price was US$7 per dmtu - since then the price has tanked to about $5.50. The costs price remains at US$2.05 per dmtu for Tshipi.
 
Having fallen back to 35c against an IPO price of 40c and cash buyback at 44c, Jupiter is deceivingly disappointing. The only factor now is that JMS rely on Manganese for income from Tshipi payouts and their Manganese sales arm in South Africa. They are seen to be struggling with diversification and the iron ore interests at Mount Ida and Mount Mason are all systems go only if the iron ore price steps up and stays over $100 a tonne for 62% Fe. High Grade iron ore at Mount Mason will be first out of the blocks.
Iron ore price: Chinese imports rebound
http://www.mining.com/iron-ore-price-chinese-imports-rebound/

The shares are a decent hold with the company promising to return 70% of their receipts from Tshipi. At 35c a share the company is on a prospective, though depending on the Manganese price presently at US$5.50 per dmtu, yield of around 7% to 10%.
 
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Jupiter Mines heading back to its IPO price of 40c after announcing that Tshipi annualised production and sales for the first three months of FY2019 is exceeding the expected 3.3 million tonnes per annum target. The company also said that it expects to make a healthy first half-year distribution to its shareholders in September 2018.

 
JMS priced at 37.5c a share and market cap of A$731 million (US$550 million). A Manganese play and future iron ore punt or is it invest, up to you to research that point? Tshipi expected payout of A$75 million for the first half year in September and with a payout next March could, I say could, push this to A$150 million. The yield may push on up to 20% though thoughts lie on future taxation and dividend versus buybacks, so maybe a 13% to 15% yield is safe providing the Manganese price jockeys between US$5 and US$8 per dmtu, averaging around US$6 to be safe.
A good solid gamble or maybe just a reasonably high yield for your portfolio.
 
Jupiter Mines share price under pressure as UBS seeks to sell Investec's $89 million stake in the company.

JMS currently down 9.09% to 35c with more than 273 million shares having changed hands so far today. Could be a good opportunity for those looking to top up?
 

That amount of stock from the biggest holder of Jupiter shares came as a shock to investors. Institutions may have been savvy to potential events as Investec is an investment company in America that does so for itself and clients. They seek to unload for big profits and were locked into Jupiter in January 2014 when they withdrew from an ASX quote.

Investec are a distressed seller under investigation for Forex rigging: 03/08/2018 - https://www.moneyweb.co.za/news/sou...estec-set-to-intensify-in-forex-rigging-case/
 
Jupiter Mines JMS still find themselves priced at just 34.5c a share. A payment from South Africa's Tshipi Manganese mine is expected during this month. This equates to a dividend of 12% to be paid to JMS shareholders and if the final is the same an annual yield of 24%.

Why aren't the shares at a higher level everyone and their pet rabbit would ask. Well, there is a combination of factors. Major shareholder Pallinghurst Resources whos Chairman, also the Chairman of Jupiter and a director of Tshipi e Ntle, needs cash for his Pallinghurst Resources with ambitions of a now stalled idea to get a quotation on the LSE and develop their diamond mining asset. Also the only cash bearing asset of Jupiter is based on the price of Manganese.

Now, should one invest at this low level? Well, if you reckon Manganese is going to rise further in price and be generally stable JMS is a snip at the price. If however you reckon the price is going to fall sharply and stay quite low then the opposite could be your conclusion.

Jupiter rose to 85c a share in the 2008/2010 period on the back of their quite well advanced iron ore projects at Mount Ida and Mount Mason in WA. Now on ice due to the iron ore price and no cash advancement from WA's Government Mining department.

The Tshipi Manganese mine has a 100 year mine life and should see out everyone on planet earth save a very few.

You choose on this one guys as I'm biassed with a quite large holding.
http://www.jupitermines.com
 
A massive overhang is the problem here for Jupiter Mines but is a great investment providing you think the manganese price will keep in the US$5.00 to US$8.00 range. In theory with dropping off of manganese production in Northern Cape all should continue hunky-dory.
Shares are on a prospective dividend yield of 24% at 34c a share. Screaming cheap on that basis with a cheaper Aussie, strong US$ and local currency continuing weak against the greenback. Everything in the manganese garden is rosy and only a low manganese price could bring on the black spot, rust and mildew.
 
Priyank Thapliyal, chief executive of Jupiter Mines Limited (ASX:JMS), runs Proactive's Andrew Scott through the company's background including the de-listing and recent re-listing on the ASX.
Https://youtu.be/xc2xri02Pg8
 
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