Why Did Jupiter Mines’ Profit Rise to $40.1M Despite Manganese Price Swings?
Jupiter Mines Limited reported a modest rise in net profit to $40.1 million for FY2025, supported by strong joint venture earnings and increased marketing fees. The company declared a final dividend as manganese prices stabilized after early-year volatility.
- Net profit after tax rose to $40.1 million in FY2025
- Share of profit from Tshipi joint venture increased to $42.5 million
- Marketing fee revenue grew to $9.4 million
- Final unfranked dividend of $0.0075 per share declared
- Manganese prices fell early in FY2025 but stabilized in second half
Steady Financial Growth Despite Market Fluctuations
Jupiter Mines Limited has released its preliminary final report for the financial year ended 30 June 2025, revealing a net profit after tax of $40.1 million, a slight increase from $38.9 million in the previous year. This performance reflects the company’s resilience amid a challenging manganese market, where prices initially declined but later stabilized.
The company’s earnings were buoyed by its 49.9% stake in the Tshipi é Ntle Manganese Mining joint venture, which contributed $42.5 million in profit, up from $40.0 million in FY2024. Tshipi achieved record sales and processing volumes during the year, although the average manganese price edged up only marginally to US$4.02 per dry metric tonne unit (dmtu) from US$3.98 in the prior year.
Operational Highlights and Cost Pressures
Operationally, Tshipi’s performance was notable for record-breaking sales and mining throughput. However, production costs increased by 4.1% to US$2.30 per dmtu, driven primarily by higher royalties and adverse foreign exchange movements. These cost pressures partially offset the benefits of stable manganese prices in the latter half of the year, which were supported by reduced inventories at Chinese ports and improved downstream demand.
Jupiter’s manganese ore marketing division also contributed positively, generating $9.4 million in marketing fees, up from $8.1 million in FY2024. Despite this increase, cash flow from marketing declined to $6.4 million, reflecting tighter market conditions.
Dividend and Balance Sheet Position
The company declared a final unfranked dividend of $0.0075 per share, payable on 19 September 2025, following receipt of a ZAR300 million dividend from Tshipi. Jupiter ended the year with $13.2 million in cash, down from $19.1 million, and reported net assets of $565.4 million, up from $543.3 million the previous year.
While the financial report remains preliminary and unaudited, Jupiter’s steady earnings and dividend payout underscore its commitment to delivering shareholder value despite market headwinds. The company’s exposure to manganese, a critical metal for steelmaking and emerging battery technologies, positions it well for future growth, provided market conditions remain supportive.
Bottom Line?
Jupiter Mines’ steady FY2025 results and dividend signal resilience, but manganese market volatility warrants close watch.
Questions in the middle?
- How will ongoing manganese price fluctuations impact Jupiter’s joint venture earnings in FY2026?
- What strategies will Jupiter employ to manage rising production costs and foreign exchange risks?
- Can Jupiter sustain or grow its dividend payout amid evolving market and operational conditions?
