Jupiter Mines Faces Market Volatility Despite Strong Q3 Production and Earnings

Strong Operational Performance at Tshipi

Jupiter Mines Limited (ASX: JMS) has delivered a solid Q3 FY2025 performance, underpinned by its 49.9% stake in the Tshipi é Ntle Manganese Mine in South Africa. Production rose 15% to 858,152 tonnes, while sales increased 14% to 777,229 tonnes compared to the previous quarter, aligning well with the company’s full-year plan. This growth was achieved despite seasonal rains impacting mining volumes and some logistical disruptions along the ore corridor.

The company’s focus on operational efficiency is evident in the 15% reduction in unit production costs to US$2.06 per dry metric tonne unit (dmtu) FOB. This improvement was largely driven by mining ore from a new pit area with a more favorable stripping ratio and a weaker South African Rand against the US Dollar, which benefited the cost base.

Financial Results Reflect Market and Operational Strength

Jupiter’s share of Tshipi’s EBITDA surged 65% quarter-on-quarter to A$44.3 million, while net profit after tax (NPAT) rose to A$28.3 million. The earnings uplift was supported by a combination of higher realised manganese prices, increased sales volumes, and lower production costs. Average manganese prices on a CIF basis climbed 8% during the quarter to US$4.03/dmtu, reflecting steady demand and reduced supply that tightened Chinese port inventories.

Cash reserves at Tshipi slightly declined to A$130.5 million, primarily due to the payment of an interim dividend. However, excluding dividend outflows, the operation generated positive net cash despite increases in inventory and working capital.

Market Dynamics and Outlook

The manganese market experienced price volatility, with prices peaking at US$4.49/dmtu during the quarter before softening to US$3.87/dmtu by the end of April 2025. Supply-side constraints, including reduced exports from major producing regions, helped support prices earlier in the quarter. However, increased exports and elevated stockpiles in China towards the quarter’s end have introduced downward pressure.

Downstream demand remains mixed, with global crude steel production declining 1% year-on-year in Q3 FY2025 and Chinese steel output falling 3%. Weakness in China’s real estate and construction sectors continues to dampen manganese alloy demand, prompting some alloy producers to curtail output. These factors, combined with escalating trade tensions and currency fluctuations, add complexity to the market outlook.

Safety and Logistics Update

Safety metrics showed a slight deterioration with one lost time injury (LTI) reported during the quarter, increasing the total recordable injury frequency rate (TRIFR) to 0.38 from 0.32. On the logistics front, volumes improved by 26% as South African road haulage resumed to meet export demand, helping to alleviate previous bottlenecks.

Strategic Positioning and Investor Engagement

Jupiter Mines continues to position itself as a key player in the manganese sector, capitalising on the metal’s critical role in steelmaking and emerging renewable energy technologies. The company maintains a track record of returning value to shareholders through dividends, supported by strong operational cash flows. Investors are invited to participate in an upcoming call on 30 April 2025 to discuss the quarterly results and outlook.