Jupiter Mines Limited

Tshipi sold 867,619 tonnes in the quarter, up 4% quarter-on-quarter and 27% versus the prior corresponding period. Production was 840,688 tonnes, up about 1% quarter-on-quarter and 13% year-on-year, with high-grade ore production up 10% quarter-on-quarter. Unit costs were USD 2.24 FOB per dmtu, slightly better quarter-on-quarter despite a strengthening rand. Tshipi EBITDA was down 19% quarter-on-quarter, mostly because of FX losses from the stronger rand. Cash at Tshipi ended December at around AUD 137 million, down 2% from September, while Jupiter-level cash was basically steady. Management did not give formal next-quarter or full-year financial guidance, but said sales and production remained in line with full-year targets and that the interim dividend for 31 December will be decided in the next month.

Brad Rogers described the quarter as another strong operating result, emphasizing higher sales and production, lower unit costs, and cash remaining at healthy levels even after the semiannual tax and royalty payment. He said the manganese market was supportive, with prices, freight rates, and China stockpiles all pointing to a balanced backdrop. His tone was upbeat and confident, especially on the near-term Exxaro transaction and the prospect of value growth and growth through consolidation in the Kalahari.

Melissa North did not give a separate scripted update in the transcript, but the financial points discussed were that Tshipi EBITDA fell 19% quarter-on-quarter mainly due to FX losses from the stronger rand. Cash at Tshipi finished around AUD 137 million, down 2% quarter-on-quarter after the usual semiannual taxes and royalties, while Jupiter cash was also basically steady. Management framed the balance sheet as healthy and operating cash generation as solid.

Analysts focused on whether Exxaro’s entry would change Tshipi’s management or governance. Brad Rogers said there would be no change to the operating team, no change to the shareholders’ agreement, and no anticipated change in key management personnel; the main board-level change will be Exxaro replacing Ntsimbintle appointments at completion. On the dividend, he clarified that the 31 December dividend will still be decided under the existing structure before completion. In a separate question, management said manganese market momentum looks better than expected, with low China stockpiles, stronger-than-anticipated downstream demand, supportive FX, and freight rates helping prices, though they noted temporary seasonal factors and some uncertainty around downstream alloy inventories.