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Jupiter Mines Ltd (JMS)

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Question asked 31/05/2025

Jupiter Mines Ltd (JMS)

JMS currently trades around 19c. Exxaro Resources has signed binding agreements to acquire a 19.99% stake in Jupiter Mines (ASX:JMS), making it the largest shareholder in the company. This acquisition is part of a broader R11.67 billion (approximately $640 million) deal to acquire manganese assets in South Africa’s Kalahari Manganese Field. The share purchase involves acquiring 392,012,248 fully paid ordinary shares in Jupiter from Ntsimbintle Holdings (NH) at a price of ZAR 3.69 per share, which equates to almost 32c per share. Why would Exxaro pay 31.7c but there is no price movement on the ASX? Is it an opportunity?

Answer

Hi Manie,

For subscribers not familiar with JMS, it’s a $397mn WA miner whose primary business is the extraction and export of manganese ore through its flagship asset, the Tshipi é Ntle Manganese Mine in South Africa’s Northern Cape.

As you said Exxaro Resources has entered into a significant transaction to acquire a 19.99% stake in Jupiter Mines Limited (JMS), positioning itself as Jupiter’s largest shareholder. This move is part of a broader strategic acquisition aimed at expanding Exxaro’s footprint in the manganese sector.

Importantly Jupiter Mines CEO Brad Rogers has welcomed Exxaro with open arms onto the companies register explaining the Tshipi transaction on the company’s website.

Exxaro Resources (EXX SJ) is a ~$A4.4bn listed South African miner that in the past has been known for its coal operation with this being a chapter of reinvention away from fossil fuels. The full details of the JMS deal have not been publicly disclosed, standard provisions in such transactions typically allow for termination under certain circumstances – it could end up being the equivalent of a call option but it doesn’t read like that.

Its a speculative play buying JMS but its a profitable business which pays a dividend and we like the risk/reward around 20c.

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Juniper Mines (JMS)

LAST UPDATED 31/05/2025 09:06

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