Why Did Jupiter Mines’ Production Rise While Sales and Earnings Fell in Q1 FY2026?
Jupiter Mines reported a 5% increase in manganese production for Q1 FY2026, yet sales volumes and EBITDA declined, reflecting a complex market environment. Despite these shifts, the company maintains a strong cash position and steady manganese prices.
- 5% quarter-on-quarter production increase at Tshipi manganese mine
- 23% sales volume decline impacts EBITDA, down 35% to A$26.6 million
- Cost of production improves by 4% to US$2.27 per dry metric tonne unit FOB
- Cash reserves grow 9% to A$140.3 million despite dividend payments
- Stable manganese prices with slight post-quarter spot price increase
Production and Operational Highlights
Jupiter Mines Limited, holding a 49.9% stake in the Tshipi é Ntle Manganese Mine, reported a nuanced first quarter for fiscal year 2026. Production rose by 5% quarter-on-quarter to 829,798 tonnes, driven by a 21% increase in graded ore mining and a significant 57% surge in low-grade ore output. This operational uptick was achieved alongside a 4% reduction in the cost of production, now at US$2.27 per dry metric tonne unit (dmtu) FOB, reflecting effective cost control despite currency headwinds.
Sales and Financial Performance
However, sales volumes fell sharply by 23% compared to the previous quarter, aligning with a planned moderation after a strong Q4 FY2025. This decline in sales weighed on earnings, with EBITDA dropping 35% to A$26.6 million and net profit after tax decreasing to A$17.8 million. The sales volume reduction was partly offset by stable manganese prices, which held steady at an average CIF price of US$3.86/dmtu during the quarter, with a slight increase in spot prices observed post-quarter.
Logistics, Safety, and Market Context
Logistics volumes saw a marginal 1% increase, aided by contingency measures during a planned rail shutdown. Safety metrics were mixed, with no lost time injuries recorded but a slight rise in the total recordable injury frequency rate to 0.44. Market conditions remain balanced, with manganese ore stockpiles in China stable yet below historical averages, and alloy production pressures emerging due to oversupply and fluctuating steel demand globally.
Corporate and Outlook
Jupiter’s cash position strengthened by 9% to A$140.3 million, underscoring robust operating cash flow despite dividend payments. The company’s marketing arm also reported modest EBITDA growth, reflecting steady demand for its share of Tshipi’s output. Looking ahead, Jupiter navigates a manganese market characterized by regional steel production disparities, geopolitical tensions, and evolving demand dynamics, particularly in China and India.
Bottom Line?
Jupiter Mines’ Q1 results highlight operational resilience amid sales and earnings pressures, setting the stage for a closely watched market response.
Questions in the middle?
- Will sales volumes rebound in the coming quarters to support EBITDA recovery?
- How will ongoing geopolitical and macroeconomic factors influence manganese demand?
- Can Jupiter sustain cost efficiencies amid currency fluctuations and market volatility?
