ASX-listed Jupiter Mines has reported that the Tshipi manganese mine, in South Africa, has achieved another strong quarter, contributing to several record-breaking achievements for the 2025 financial year.

The company notes that the June quarter saw a material increase in sales volumes, up 40% on the March quarter.

This set a new full-year sales record of 3.59-million tonnes. Both logistics and sales volumes exceeded plan for the financial year. 

Jupiter notes that quarterly mining volumes were down 30% in the June quarter, owing to pit access constraints from water ingress. Despite this, the company explains that Tshipi recorded its highest-ever yearly mining volume in the financial year, exceeding previous records.

High-grade ore production declined by 21% in the June quarter owing to the same pit conditions; however, full-year production remained above plan.

Low-grade stockpiled ore was processed for the first time since the first quarter of the 2025 financial year, supporting overall throughput.

By the end of June, Jupiter says, Tshipi set another full year production record for all material processed, including ore production, of 3.6-million tonnes.

While the financial year under review marked a record year for sales, mining and processing volumes, the company says operational constraints in the June quarter did impact unit costs.

A reduction in graded ore mining and production volumes during the quarter, together with several year-end provisions, contributed to a higher unit cost to $2.36 per dry metric tonne unit (dmtu) on a free-on-board (FOB) basis for the quarter. 

Meanwhile, one lost-time injury was recorded during the period, involving a contractor who sustained a laceration while responding to a breakdown.

Jupiter explains that the incident was attributed to inadequate lighting and the individual working alone. The total recordable injury frequency rate remained steady at 0.38 – unchanged from the March quarter.

Tshipi recorded earnings before interest, taxes, depreciation and amortisation (Ebitda) of A$40.9-million and net profit after tax (NPAT) of A$25.9-million for the June quarter, down from A$44.3-million and A$28.3-million, respectively, in the March quarter.

The company notes that the slight decrease reflects a combination of the lower realised ore prices and higher unit production costs during the period.  

CORPORATE, FINANCIAL UPDATES

During the quarter, Jupiter welcomed Exxaro Resources as a prospective partner and major shareholder, with its binding agreement to acquire a 50.1% interest in Tshipi from Ntsimbintle Holdings and OM Holdings and a 19.99% interest in Jupiter from Ntsimbintle Holdings.

Jupiter says the transaction is subject to conditions, including regulatory approvals in South Africa. Jupiter will retain its 49.9% stake in Tshipi, with no change to its rights under the shareholder agreement.

Post quarter-end, the company says the Tshipi board declared a final dividend of R300-million for the second half of financial year 2025, reflecting the mine’s strong operational and financial performance.

Jupiter’s share totals about A$12.3-million, or R142.2 million net of withholding tax, plus A$2.3 million, or R26.3-million, in marketing profits.

The final dividend to Jupiter shareholders will be announced on August 29 with preliminary financial year 2025 results.

MANGANESE MARKET CONDITIONS, OUTLOOK

Jupiter notes that a late uptick in manganese ore prices at the end of the March quarter prompted increased supply from major producers in the fourth quarter.

The resumption of exports from the Groote Eylandt mine, in Australia, further contributed to increased supply, leading to higher manganese ore inventories at Chinese ports.

Despite this, the company says stockpiles remain below the five-year average of about 5.86-million tonnes, according to FerroAlloyNet.

Jupiter explains that the increase in supply contributed to softer manganese prices in the June quarter, with additional downward pressure from ongoing geopolitical and macroeconomic uncertainty.

The average realised price for the June quarter was $3.86/dmtu cost, insurance and freight (CIF), down 4% from $4.03/dmtu in the March quarter.

“Since quarter-end, manganese prices have begun to recover. This is further supported by stronger downstream demand and expectations of economic stimulus in China, particularly in steel and related sectors. At the end of July, the spot price has risen to $3.99/dmtu CIF, up 4% from the end of June,” the company says.