Jupiter Mines reported a modest rise in manganese production and sales for Q2 FY2026, alongside lower production costs. However, earnings were dented by foreign exchange losses amid a stronger South African Rand.
- Production up 1%, sales up 4%, high-grade ore production up 10%
- Cost of production decreased 1% quarter-on-quarter to US$2.24/dmtu FOB
- EBITDA fell 19% to A$21.6 million due to foreign exchange impacts
- Two lost time injuries raised safety incident rate to 0.56 TRIFR
- Manganese prices strengthened on Chinese restocking and demand
Operational Highlights
Jupiter Mines Limited, holding a 49.9% stake in the Tshipi Manganese Mine, has reported a quarter of steady operational progress for Q2 FY2026. Production increased slightly by 1% to 840,688 tonnes, while sales volumes rose 4% to 867,619 tonnes. Notably, high-grade manganese production surged by 10%, reflecting the company’s strategic focus on higher-value ore amid favourable market conditions.
Cost efficiencies were also evident, with the average cost of production falling 1% quarter-on-quarter to US$2.24 per dry metric tonne unit (dmtu) on a free-on-board basis. This improvement was driven by marginally lower mining costs and royalties, despite some offset from increased logistics and overhead expenses.
Financial Performance and Currency Impact
Despite operational gains, Jupiter’s earnings before interest, tax, depreciation and amortisation (EBITDA) declined 19% to A$21.6 million compared to the previous quarter. This drop was primarily due to foreign exchange losses stemming from a 4% strengthening of the South African Rand against the US Dollar. The Rand’s volatility, influenced by global financial conditions and commodity price trends, continues to pose a challenge for earnings stability.
Cash reserves decreased slightly to A$137.4 million after the payment of half-yearly taxes and royalties. The company’s net profit after tax (NPAT) also fell to A$14.6 million, reflecting the combined effect of currency headwinds and a provisional adjustment to historical logistics costs.
Market Dynamics and Outlook
Manganese prices showed a positive trajectory during the quarter, with the average realised CIF price for high-grade lumpy ore rising to US$4.10/dmtu, supported by increased consumption and seasonal restocking in China ahead of the Lunar New Year. Freight rates experienced minor fluctuations, ending the quarter marginally higher but easing in January 2026.
Market commentary highlights sustained demand in China and India, despite a global decline in crude steel production. Chinese manganese alloy production remains elevated, although oversupply pressures have kept alloy prices stagnant. Meanwhile, India’s infrastructure-driven demand continues to grow robustly, partially offsetting weaker European markets.
Safety and Operational Challenges
Safety remains a focus, with two lost time injuries recorded during the quarter, both slip and fall incidents, causing the total recordable injury frequency rate (TRIFR) to increase to 0.56. Operationally, mining volumes of graded ore decreased by 5%, and waste mining fell 12%, impacted by seasonal rains and equipment availability. Logistics volumes dipped slightly due to a major rail derailment, necessitating increased road haulage.
Strategic Positioning
Jupiter’s marketing arm also reported improved sales and pricing, with marketing fee income rising to A$2.3 million. The company continues to prioritise high-grade ore production to capitalise on favourable market conditions and maintain cost discipline amid currency volatility. The outlook remains cautiously optimistic, with manganese demand expected to be supported by infrastructure growth in India and restocking in China, balanced against global economic uncertainties.
Bottom Line?
Jupiter Mines navigates rising manganese demand and cost efficiencies but must manage currency volatility to sustain earnings momentum.
Questions in the middle?
- How will ongoing South African Rand fluctuations affect Jupiter’s future earnings?
- Can Jupiter maintain its high-grade production growth amid seasonal and operational challenges?
- What impact will global steel production trends have on manganese demand and pricing?