ASX-listed Jupiter Mines says that the Tshipi manganese mine, in South Africa, delivered an “outstanding” operational and financial performance in the third quarter ended March 31, with sales volumes having increased by 14% quarter-on-quarter and production volumes by 15% quarter-on-quarter.

Jupiter has a 49.9% beneficial interest in Tshipi é Ntle Manganese Mining, which operates the Tshipi mine.

Sales of 777 229 t were 14% higher quarter-on-quarter, but 2% lower year-on-year.

Production of 858 152 t was 15% higher quarter-on-quarter and 14% higher year-on-year.

The operation recorded one lost-time injury in the quarter, while the total recordable injury frequency rate increased to 0.38, from the previous quarter’s 0.32.

Tshipi earnings improved in the period. Earnings before interest, taxes, depreciation and amortisation of A$44.3-million were a 65% increase on the previous quarter.

A combination of higher realised manganese prices, increased sales volumes and lower unit production costs contributed to the increase in earnings.  

While cash holdings at both Tshipi and Jupiter declined slightly following the half-year dividend payment, Tshipi generated positive cash for the quarter, despite higher inventory and working capital levels.

Cash of A$130.5-million marginally reduced owing to the interim dividend payment, an 8% decrease on the previous quarter end.

The cost of production at Tshipi decreased by 15% quarter-on-quarter, partially driven by mining in a new area of the pit with a more favourable stripping ratio.

Higher production volumes also contributed to improved unit costs.

The quarter recorded average realised manganese prices of $4.03 per dry metric tonne unit (dmtu), an increase of 8% compared with the December 2024 quarter average of $3.72/dmtu.

This improvement was a result of steady ore demand and moderated supply, resulting in low stocks of manganese ore at port in China, the company points out.

Manganese ore prices rose through most of the quarter, supported by steady ore demand and moderated supply, before easing late in the period.

Market sentiment weakened late in the quarter owing to elevated downstream inventories and rising trade tensions, in addition to increased supply. 

Freight rates have slightly improved, to $23.70/t at the end of the period (Port Elizabeth to Tianjin), compared with $24/t at the start of the quarter, a 1% improvement.