15c - Party, page-41

agree.

if you look at the June qtry report, production costs increased to US$2.50 per dmtu. If you go onto Jupiter’s website right now they say the current manganese price is US$2.99 per dmtu. So there’s not much margin to play with there. In fact this could be the thinnest margin JMS has had in a while.

But the qtrly report states that the reason for the increase in production costs is because of the increase in royalties payable due to the 3 months of bumper manganese prices that was achieved. As manganese prices have come down as fast as they went up, they will no longer be paying these big royalties, which means production costs will drop back down, which means the operating margin will re-widen.

But until then, whilst the margin is thin and whilst the manganese market is uncertain, it makes perfect sense to play it safe and hold onto the cash.

That being said, when things stabilise and become more certain, there could be expectations of management paying out the current withheld profits at the next dividend, resulting in an extra juicy dividend coming up.

unless of course these profits are gonna be put towards acquiring a stake in another mine…

all IMO

GLTAH