Key points
- Tshipi boosts output and cuts costs, lifting cash to A$140 million.
- Jupiter remains on track to meet its 3.4 million tonne target.
- Manganese prices hold steady as Chinese demand stays strong.
Jupiter Mines expects to meet its full-year production and sales targets after a strong first-quarter performance from its Tshipi manganese mine in South Africa.
For the quarter ending September 30, Tshipi produced 829,798 tonnes of manganese ore and sold 837,577 tonnes. These figures keep Jupiter on pace to hit its 3.4 million tonne goal for the 2026 financial year.
Jupiter owns 49.9 percent of Tshipi through its subsidiary, Jupiter Kalahari.
Cash growth and lower costs
Tshipi lifted its cash balance to A$140 million during the quarter. Strong production and steady sales helped drive this increase.
The mine also cut its production cost by 4 percent to $2.27 per dry metric ton unit on a free-on-board basis. Higher ore volumes and tight cost control supported the result.
This outcome stands out, given that a stronger rand usually raises dollar-based costs. Jupiter also pointed out that Tshipi paid a final dividend of R300 million to shareholders for the 2025 financial year.
The mine recorded no lost-time injuries during the period. Its total recordable injury frequency rate rose slightly to 0.44 from 0.38 due to two minor incidents.
Tshipi earned A$26.6 million before interest, taxes, depreciation, and amortisation, with a net profit of A$17.8 million. Both were lower than the previous quarter’s A$40.9 million and A$25.9 million.
Jupiter attributed the decline to lower sales volumes and a different product mix, noting that the prior quarter had unusually strong sales.
Manganese market trends
Manganese ore prices strengthened during the September quarter. Global supply steadied, and Chinese alloy production stayed firm.
Port stockpiles in China also remained stable despite increased shipments from the South32 manganese mine at Groote Eylandt in Australia.
Strong demand from Chinese alloy producers kept stockpiles at 4.4 million tonnes, below the five-year average of 5.8 million tonnes. That total represents less than two months of consumption.
Global crude steel production faced headwinds during the year, especially in China, where output continued to decline.
However, India’s growing steel output helped balance the global trend. The country’s rise stems from infrastructure, urban development, and renewable energy projects.
Jupiter noted that geopolitical tensions, trade issues, and weak economic growth still weigh on the steel industry.
The World Steel Association expects steel demand to stay flat in 2025 and rise by 1.3 percent in 2026 as investment and economic conditions improve.
China’s steel production is likely to fall further in both 2025 and 2026 due to a weak property market and local government debt. Global trade uncertainty remains another risk.
After the quarter ended, manganese ore prices stayed stable, supported by steady supply and demand.
