Why the Jupiter Mines (ASX:JMS) share price tanked over 7% today

Jupiter Mines Ltd (ASX: JMS) share price was down a whopping 7% today before recovering. The negative movement after the company announced it would indefinitely delay its announced demerger.

| More on:
man grimaces next to falling stock graph

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Jupiter Mines Ltd (ASX: JMS) share price was down a whopping 7% today before recovering. The negative movement came after the company announced it would indefinitely delay its announced demerger.

At the time of writing, the mining companies share price is at 34 cents – down from yesterday's close of 35 cents a share.

This drop is a distinct contrast to the 1.7% rise in the S&P/ASX All Ordinaries Index.

How today's news is affecting Jupiter Mines share price?

In an announcement to the ASX Jupiter Mines advised it was delaying the spinoff of proposed company Juno.

Juno, which was to be an iron ore focused company, was overwhelmingly approved by shareholders at its AGM. The proposed company would have taken ownership of Jupiter's Central Yilgarn Iron Projects. Juno was slated to commence trading on 17 March 2021.

Stitching Pensioefonds ABP (ABP), which has a near 15% stake, is the company's second-largest shareholder. The company confirmed they did not want to meet the regulatory requirements of the Foreign Investment Review Board (FIRB). Meeting FIRB requirements is a condition of the Juno initial public offering (IPO) and Jupiter capital reduction.

Jupiter's CEO, Priyank Thapliyal, commented:

The IPO and the potential uplift that would have occurred with the construction of Mount Mason in the near term in this robust iron ore price market was the optimal structure to release substantial value for Jupiter shareholders. Needless to say, this has been usurped for all the shareholders by the decision of one shareholder, ABP.

What are the FIRB requirements?

According to the FIRB, a foreign investor must notify the federal Treasurer and seek approval before acquiring any interest in an Australian mine or mining entity above a certain monetary threshold.

There are fees and waiting periods with the approval process.

Jupiter Mines share price snapshot

Despite today's plunge, Jupiter Mines share price is trending upwards. Only 2 weeks ago the company hit its 52-week high of 38 cents a share. In fact, this time last year, shares in the miner were selling at only 23 cents. At today's price, that's a 39.6% uplift. Yet, the Jupiter Mines share price is lower than its 2018 IPO price of 42 cents a share.

Jupiter Mines has a market capitalisation of $670 million.

Should you invest $1,000 in Lake Resources N.l. right now?

Before you buy Lake Resources N.l. shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Lake Resources N.l. wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Excited couple celebrating success while looking at smartphone.
Broker Notes

Bell Potter names the best ASX 200 stocks to buy in May

The broker is feeling bullish on these names this month. Let's find out why.

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Opinions

Investing in high-yield ASX stocks has two major negatives

High-yield stocks do have downsides.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Share Market News

ASX shares in April: 8 key takeaways according to Macquarie

Here are eight key takeaways from April, according to a new note from the broker.

Read more »

Woman looking at a phone with stock market bars in the background.
Share Market News

Market outlook: Should I 'sell in May and go away'?

May is the time to sell... If you believe in fairytales.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »