Jupiter has achieved a 30% annual return on assets in recent years but the outlook for manganese is not seen as bright
Red Rock Resources PLC (AIM:RRR, FRA:R2TA) said it has made proceeds of A$2.33mln (1.24mln) as it disposed of a substantial part of its remaining holding in Jupiter Mines Ltd through sales in the open market.
The sales have been completed at an average price of A$0.304 per Jupiter share.
As of the announcement, Red Rock retains 5,870,693 Jupiter shares.
The current share price of Jupiter is A$0.225, which it noted is 26% below the average price of Red Rock's recent sales.
Andrew Bell, chairman of Red Rock, said: “Our ability to raise over a short period a sum in excess of 1,000,000 from our share portfolio demonstrated the company's ability to respond to events and to strengthen its liquidity from internal sources as required.
“We manage our investments actively and having formed the view that prospects in the near term for Jupiter had deteriorated, were able to reduce our holdings in amounts and at prices that did not appear to affect the price in the market.”
He noted that, shortly after listing in 2005, Red Rock sold iron ore assets to Jupiter in exchange for cash, shares and a royalty, and later increased the holding to become the largest Jupiter shareholder, bringing in Pallinghurst Partners as a partner, which led to the injection into Jupiter of Pallinghurst’s manganese assets in South Africa that are currently its sole significant asset.
“Jupiter...
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