ASX-listed Jupiter Mines has reported that its Tshipi manganese mine, in the Kalahari Manganese Field (KMF) in South Africa’s Northern Cape province, continues to generate strong cash flows, supported by disciplined cost management and a strengthening manganese market.

In its report for the half-year ended December 31, Jupiter notes that 1.7-million tonnes of manganese were produced at Tshipi during the period, including 1.4-million tonnes of high-grade ore, with volumes on track to meet the full-year business plan. 

The company notes that Tshipi began financial year 2026 by building some low-grade ore stockpiles whilst production schedules allowed.

With market conditions having improved in the second quarter of the financial year, Tshipi then prioritised high-grade production.

Jupiter recorded a consolidated result for the half-year of $16.19-million profit after tax, including a share of net profit from its investment in Tshipi of $16.17-million.

Jupiter’s cash at December 31, 2025, was $11.43-million.

Jupiter notes that Tshipi recorded a net profit after tax of R369-million, or $32.4-million, for the six months under review.

The company explains that Tshipi’s net profit was marginally higher than the previous half-year period owing to an increase in manganese prices offset by a decrease in mining and production volumes.

Tshipi’s cost of production reduced to $2.25 per dry metric ton unit (dmtu) on a free-on-board (FoB) basis for the half-year, against $2.36 for the prior comparative period.

Tshipi ended the half-year period with R1.5-billion, or $137.3-million, in cash.

Meanwhile, Jupiter notes that the Tshipi board of directors will determine the interim dividend at a scheduled board meeting on March 12.

While the interim dividend would ordinarily have been declared in advance of, and included in, the company’s results for the half-year, the completion of the Exxaro transaction – through which Exxaro will become Jupiter’s co-investor and joint venture partner at Tshipi – is scheduled to complete on February 27.

Given the timing of this change in Tshipi’s ownership structure, Jupiter says Tshipi shareholders decided that it is appropriate to determine the half-year 2026 interim dividend to shareholders at the next Tshipi board meeting.

The company explains that this will allow determination of the interim dividend by Jupiter and Exxaro, who will be the recipients of a declared interim dividend. 

STRATEGIC PROGRESS

Jupiter also reports that it continued to advance its five-year company strategy during the period, making measured progress across all core initiatives.

The company says ongoing business improvement and cost efficiency remains a core focus at Tshipi.

Given that logistics represent the largest component of Tshipi’s cost base, the company explains that efforts during the period have been directed towards improving logistics capacity and flexibility.

This included securing a milestone ten-year Manganese Export Capacity Allocation Agreement 3 with State-owned Transnet early in the six months under review, and continued engagement to unlock incremental rail opportunities.

The company says these initiatives enhance Tshipi’s cost competitiveness and export resilience.

Jupiter says it has also progressed work on assessing the appropriate sustainable production rate at Tshipi, with updated long-term mine planning continuing during the period.

The company notes that any future increase in production will be carefully timed to align with market conditions, with a focus on delivering sustainably and profitably higher output.

Additionally, Jupiter says targeted consolidation opportunities within the KMF remain under active consideration.

The company explains that the acquisition of manganese interests by Exxaro represents an important strategic development and aligns with Jupiter’s vision for consolidation in the region.

Meanwhile, Jupiter says it continues to support Tshipi in advancing sustainability initiatives that deliver both strong environmental, sustainability and governance outcomes and clear commercial benefits.

During the six months to December 31, 2025, Tshipi announced its achievement of Level 1 broad-based black economic empowerment status, joining only one other miner in the KMF to have attained Level 1.

In addition, Jupiter says it continues to progress its studies into the potential production of battery-grade manganese from low-grade ore.

The commissioning of a high-purity manganese sulphate monohydrate pilot plant during the 2025 financial year has enabled further flowsheet refinement, product validation and ongoing customer engagement.

“Jupiter remains disciplined in advancing this opportunity, with a focus on appropriately derisking volume and pricing assumptions to guide future study phases of the project.

“Jupiter continues to execute its strategy with discipline and flexibility, positioning Jupiter to respond to market conditions and opportunities to deliver long-term shareholder value,” the company says.