Jupiter Mines Limited reported a 15.7% rise in profit after tax for HY2026, driven by its stake in the Tshipi manganese mine and a key joint venture deal with Exxaro Resources. The company navigates production challenges and market shifts while preparing for a dividend decision.
- HY2026 profit after tax up 15.7% to $16.2 million
- Stable revenue at $4.3 million despite lower production volumes
- Exxaro Resources acquires 50.1% stake in Tshipi and 19.99% in Jupiter
- Cost of production reduced to US$2.25/dmtu FOB at Tshipi
- Interim dividend decision deferred pending JV completion
Profit Growth Amid Operational Challenges
Jupiter Mines Limited has reported a solid 15.7% increase in profit after tax for the half-year ended 31 December 2025 (HY2026), reaching $16.2 million compared to $14.0 million in the prior corresponding period. This growth was primarily driven by Jupiter’s 49.9% equity share in the Tshipi manganese mine joint venture in South Africa, which posted a marginally higher net profit despite a 20% decline in mining volumes due to seasonal rains and equipment availability.
Revenue for Jupiter remained steady at $4.3 million, reflecting consistent sales volumes of approximately 1.7 million tonnes of manganese ore. The company’s share of Tshipi’s net profit was $16.17 million, slightly up from $15.43 million in HY2025, supported by improved manganese prices and a reduction in production costs.
Strategic Joint Venture with Exxaro Resources
A significant development during the period was the completion of a strategic transaction with Exxaro Resources Limited, which acquired a 50.1% ownership interest in Tshipi and a 19.99% stake in Jupiter. This reshapes the ownership structure of the Tshipi manganese mine and is expected to enhance consolidation efforts within the Kalahari Manganese Field, a key manganese-producing region.
The timing of this transaction influenced Jupiter’s decision to defer the declaration of the HY2026 interim dividend until the next Tshipi Board meeting scheduled for 12 March 2026. This allows both Jupiter and Exxaro, as joint venture partners, to jointly determine the dividend distribution, ensuring equitable shareholder returns under the new ownership arrangement.
Operational and Market Dynamics
Tshipi’s cost of production improved to US$2.25 per dry metric tonne unit (dmtu) free on board (FOB), down from US$2.36 in the prior period, reflecting ongoing efficiency initiatives. Despite lower mining volumes, Tshipi prioritised high-grade manganese ore production in response to improving market conditions in the latter half of the period.
The manganese market showed modest price gains, with the Fastmarkets manganese ore semi carbonate CIF index rising to US$4.15/dmtu by the end of December 2025. Demand was buoyed by strong consumption from Chinese ferroalloy plants and restocking activities, alongside growth in Indian steel production driven by infrastructure and urbanisation projects. However, challenges remain in China’s steel sector due to a downturn in real estate construction, tempering overall demand.
Focus on Sustainability and Future Growth
Jupiter continues to advance sustainability initiatives at Tshipi, which recently achieved Level 1 Broad-Based Black Economic Empowerment status, a notable accomplishment in the region. The company is also progressing studies on producing battery-grade manganese from low-grade ore, leveraging a pilot plant commissioned in FY2025 to refine processes and engage customers.
Logistics improvements remain a core focus, with a new 10-year MECA 3 Agreement secured with Transnet to enhance rail capacity and export resilience. Jupiter is cautiously evaluating opportunities to increase production sustainably, aligning output with market conditions to maximise profitability.
Financial Position and Outlook
Jupiter’s cash position stood at $11.4 million as of 31 December 2025, down from $13.2 million a year earlier, reflecting dividend payments and operational cash flows. The company declared a final dividend of 0.0075 AUD per share for FY2025, more than tripling the prior year’s payout, signalling confidence in its financial health.
Looking ahead, the completion of the Exxaro joint venture and the upcoming dividend decision will be key milestones. Jupiter’s disciplined approach to growth, cost management, and strategic partnerships positions it well to navigate the evolving manganese market and deliver shareholder value.
Bottom Line?
Jupiter Mines’ HY2026 results underscore resilience and strategic agility as it integrates a major JV partner and eyes sustainable growth amid shifting market dynamics.
Questions in the middle?
- How will Exxaro’s joint venture stake influence Jupiter’s future dividend policy and capital allocation?
- What are the prospects and timelines for commercialising battery-grade manganese production?
- How might ongoing logistics improvements impact Tshipi’s cost competitiveness and export volumes?