How Did Jupiter Mines Achieve Record Sales Despite Q4 Earnings Dip?

Record Annual Performance Amid Challenging Quarter

Jupiter Mines Limited has delivered a milestone year for its flagship asset, the Tshipi manganese mine in South Africa’s Kalahari manganese field. For the full financial year 2025, the mine achieved record sales of 3.59 million tonnes and processed a record 3.60 million tonnes of material, underscoring operational strength despite a challenging final quarter.

However, the June 2025 quarter saw a mixed performance. Production declined by 8% quarter-on-quarter to 787,905 tonnes, impacted primarily by rainwater accumulation in the pit which slowed mining activities. Despite this, sales volumes surged 40% to a quarterly record of 1.09 million tonnes, reflecting strong market demand and effective logistics management.

Earnings Pressure from Market and Cost Dynamics

Financially, Tshipi’s EBITDA fell 8% to A$40.9 million in Q4, driven by a 4% drop in realised manganese prices and a 14% increase in unit production costs to US$2.36 per dry metric tonne unit. The cost rise was attributed to lower high-grade ore volumes mined and year-end provisions. Net profit after tax also declined to A$25.9 million. Cash reserves remained robust at A$128.8 million but edged down slightly due to tax and royalty payments.

The manganese market environment was marked by geopolitical tensions and trade uncertainties, notably US tariffs affecting global steel production. Chinese crude steel output fell 5% year-on-year, contributing to increased manganese ore inventories at Chinese ports. Prices remained rangebound through the quarter but showed signs of recovery post-quarter, with spot prices rising 4% by end-July.

Strategic Ownership Shift and Market Outlook

In a significant corporate development, Exxaro Resources Limited announced a binding agreement to acquire a 50.1% stake in Tshipi from existing shareholders, subject to regulatory approvals. Jupiter will retain its 49.9% interest, with its shareholder rights unaffected. This transaction could reshape the strategic direction of Tshipi and influence future operational and market positioning.

Jupiter’s marketing arm also reported improved sales and earnings, with a 37% increase in sales volumes and higher marketing fee income, reflecting effective commercial execution despite market headwinds.

Safety and Operational Resilience

Safety performance remained stable with one lost time injury reported during the quarter, maintaining a total recordable injury frequency rate of 0.38. Operationally, logistics volumes dipped slightly by 3%, partly due to rail disruptions, but overall logistics and sales volumes for the year exceeded plan, demonstrating resilience in supply chain management.

Looking ahead, manganese prices have shown tentative signs of improvement, supported by anticipated macroeconomic stimulus in China and positive downstream price movements. Freight rates, however, have experienced volatility, adding complexity to cost management.