Jupiter’s Tshipi mine beats targets as new ownership opens a bigger manganese chapter

Tshipi beats production and sales targets

Jupiter Mines Limited (ASX:JMS) finished FY26 with the operational result it wanted from its core asset: Tshipi produced and sold approximately 3.5 million tonnes of manganese ore, exceeding both annual targets and its historical average. The 49.9%-owned South African mine maintained sales despite wet weather, rail disruption and energy-price volatility, using its network of rail, road and export ports to redirect volumes when needed.

The performance came with some strain beneath the headline. Tshipi’s average production cost rose 4.3% to US$2.40 per dry metric tonne unit on a free-on-board basis, mainly because the South African rand strengthened against the US dollar. The average manganese price nevertheless increased 9% to US$4.38 per dmtu, leaving Tshipi with underlying EBITDA of A$114.6 million, down from A$133.1 million in FY25. The mine ended the year with A$129.4 million in cash.

Profit slips while dividends remain central

Jupiter’s group net profit after tax was A$37.69 million, compared with A$39.95 million a year earlier. Jupiter’s share of Tshipi’s profit fell to A$37.3 million from A$42.5 million, while marketing fee revenue was broadly stable at A$9.3 million. Group underlying EBITDA declined to A$40.3 million from A$43.3 million.

Shareholder distributions nonetheless remained a defining part of the investment case. Jupiter declared 1.3 cents per share for FY26, comprising a 0.55-cent interim dividend and a 0.75-cent final dividend, for total declared dividends of A$25.6 million. The company says it has declared A$450.8 million in dividends since listing in 2018, equivalent to about 92% of its current market capitalisation. That record is attractive, but the company’s own risk disclosures make the dependency plain: distributions are substantially reliant on Tshipi’s profitability, manganese prices, capital needs and board decisions.

Exxaro reshapes the ownership picture

FY26 also established a new strategic relationship. Exxaro Resources acquired a 50.1% interest in Tshipi from Ntsimbintle Holdings and OM Holdings, alongside a 19.99% stake in Jupiter. Jupiter retains its 49.9% Tshipi interest, while Exxaro’s arrival gives the Kalahari Manganese Field a substantial new shareholder with an explicitly stated interest in regional consolidation.

The ownership change sits alongside a leadership handover. Brad Rogers resigned as managing director and stepped down as chief executive in September 2026, with Matthew Jarvis appointed interim CEO. Rogers is scheduled to remain managing director until the end of November and available as a consultant until the end of February 2027. Jarvis, who has worked at Jupiter since 2022 and has extensive mining and manganese experience, now inherits a strategy that includes a near-complete Tshipi mine-plan review, logistics optimisation and a cautiously staged HPMSM battery-materials project.

Resource review adds a note of caution

Tshipi’s total Mineral Resource fell 3% to 409.1 million tonnes, while Ore Reserves declined 3% to 71.1 million tonnes. The report attributes the changes to mining depletion, updated geological modelling and the incorporation of additional scheduled material into the life-of-mine plan. It also says the mining approach and resource modelling for the Lower Manganese Orebody remain under review and could materially change the quantities reported.

That caveat matters because Jupiter’s appeal rests on a long-life, single-asset mine. At the same time, the immediate operating indicators remain constructive: safety improved, Scope 1 and 2 emissions fell 7%, Tshipi achieved Level 1 B-BBEE status and a 10-year MECA3 agreement with Transnet provided greater rail and port allocation certainty. The next test is whether those advantages can translate into durable margins while Jupiter decides how much capital and management attention to commit to expansion, solar power, conveyors and downstream battery manganese.