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Diversified miner Pallinghurst Resources will receive approximately $10 million from Jupiter Mines in March 2017, which it will distribute to its shareholders.

Pallinghurst Resources will receive $10 million, or R140 million, as part of manganese miner Tshipi é Ntle Manganese Mining’s decision to distribute R1 billion to its shareholders.

In turn, Jupiter Mines – a 49.9% shareholder in Tshipi é Ntle – has resolved to distribute US$55 million to its shareholders.

Accordingly, Pallinghurst, as an 18.45% shareholder in Jupiter Mines, expects to receive approximately US$10 million, or R140 million, in March 2017.

The board of Pallinghurst will consider allocating a material portion of the funds the company stands to receive to shareholders, the company added.

Tshipi é Ntle has benefited from its successful production ramp-up and the strong market environment, with the price of manganese increasing from below $1.50 per dry metric ton unit (dmtu) in January 2016 to recent prices of above $7 per dmtu, representing a five-fold increase.

Tshipi’s optimisation of its cost base has also contributed to its expectation of record profits for its financial year ending 28 February 2017.

However, Pallinghurst cautioned that the distributions are subject to no material adverse change in market conditions.