Below is the summary from the report I received, unable to post...

Below is the summary from the report I received, unable to post the whole file - too big.

Risk valuation is $1.21
unrisked valuation as of today: $0.86
Discounted Valuation: $0.77

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Jupiter Mines Ltd (JMS)

The new steel feed supplier

JMS is Pallinghursts chosen vehicle to pursue a Steel Feed Corporation strategy; develop manganese, iron ore and coking coal projects in brownfield provinces close to infrastructure. The world class Tshipi manganese project has been approved, and there is a pipeline of other development and exploration projects. We foresee ongoing strength in the space and initiate coverage with a Buy rating.

Flagship manganese project plus iron ore upside. JMS recently acquired a 49.9% stake in the flagship Tshipi Borwa project in the Kalahari Manganese Field which will be a large scale, long life, low cost, open-pit operation able to generate c.$120m in FCF ($60m JMS share) at current prices. The project should take 18 months to construct and a further 18 months to ramp up to 2.4Mtpa. In 2011/12 JMS also plans to undertake a feasibility study on the Mt Ida magnetite project in the Yilgarn region of WA which could be capable of producing 10Mtpa of magnetite.

Backing from experienced industry participants. Pallinghurst has brought together POSCO, Investec, EMG and AMCI as shareholders collectively now owning 75%. This group reduces any funding risk for future projects. We believe the market is not attributing full value to the world class Borwa manganese project, nor the Mt Ida iron ore project, which combined make up the bulk of our A$0.77/sh risked valuation. We also believe that the market is ignoring the leverage to strong manganese and iron ore prices that JMS offers, hence we initiate with a Buy recommendation. If we were to increase our long term price assumptions by 20%, our risked valuation would increase to $1.21/sh. The next catalyst should be the scoping study results for Mt Ida expected in the next few weeks.



Recommendation: Buy Price Target: $0.77 Previous Close: $0.565



Fleur Grose

Resources Analyst