Jupiter Mines Declares 0.75c Final Dividend, 58% of Net Profit
Jupiter Mines has declared a final unfranked dividend of 0.75 cents per share for H2 FY2025, reflecting a solid payout ratio amid fluctuating earnings and Tshipi dividend receipts.
- Final dividend of A$0.0075 per share declared for six months ended June 2025
- Dividend represents 58% of net profit after tax and 122% of dividend received from Tshipi
- Total dividends of A$425 million paid over past seven years
- Tshipi mine continues to underpin Jupiter’s shareholder returns with over 100 years resource life
- Dividend remains unfranked, reflecting company’s tax position
Dividend Announcement and Context
Jupiter Mines Limited (ASX, JMS) has announced a final dividend of 0.75 cents per share for the six months ending 30 June 2025. This unfranked dividend will be paid on 19 September 2025 to shareholders on record as of 5 September. The payout reflects 58% of Jupiter’s net profit after tax for the period and notably exceeds the dividend Jupiter received from its associate, Tshipi é Ntle Manganese Mining, by 22%.
Link to Tshipi Dividend and Historical Comparison
The dividend declaration follows Tshipi’s own final dividend of ZAR300 million for the same period. Jupiter’s payout ratio relative to Tshipi’s dividend is unusually high this year at 122%, compared to an average of 86% over recent years. This suggests Jupiter is maintaining strong shareholder returns despite a lower dividend inflow from Tshipi compared to previous years.
When compared historically, Jupiter’s FY2025 final dividend of A$14.7 million is slightly below the average final dividend of A$16 million over the past three years but represents a more disciplined payout relative to net profit. The company’s Managing Director, Brad Rogers, highlighted the reliability of the Tshipi mine’s operations and Jupiter’s cost discipline as key factors enabling consistent dividends.
Long-Term Outlook and Shareholder Returns
Over the past seven years, Jupiter has returned A$425 million to shareholders, equating to 22 cents per share. This steady stream of dividends underscores the company’s commitment to maximising shareholder value. The Tshipi mine, which Jupiter partly owns, boasts over 100 years of resource life at current production rates, providing a strong foundation for ongoing returns.
However, the dividend remains unfranked, which may influence the after-tax returns for certain investors, particularly those in jurisdictions where franking credits are valued. Jupiter’s ability to sustain or grow dividends will likely depend on Tshipi’s operational performance and commodity market conditions.
Investor Considerations
Investors should note the variability in dividend payout ratios and the reliance on Tshipi’s dividend declarations. While Jupiter’s cost discipline and operational oversight provide confidence, external factors such as manganese prices and geopolitical risks in mining regions could impact future dividends.
Bottom Line?
Jupiter’s steady dividend underscores resilience but invites scrutiny on sustainability amid fluctuating Tshipi payouts.
Questions in the middle?
- Will Jupiter maintain or increase dividend payouts if Tshipi’s dividends decline further?
- How will manganese market dynamics affect Tshipi’s operational performance and dividend capacity?
- What impact does the unfranked nature of dividends have on investor demand and share price?
