ASX-listed Jupiter Mines achieved group net profit after tax of $54-million for the financial year ended February 28, down 20% from the previous year.

Its share of profits generated by subsidiary Tshipi é Ntle Manganese Mining was $42.8-million, down 32%, owing to continued low manganese prices and higher freight costs.

Tshipi é Ntle Manganese Mining operates the Tshipi Borwa mine, an openpit manganese mine in the Kalahari Manganese Field in South Africa’s Northern Cape.

Tshipi achieved an increase in production of 9.8% from 3.4-million tonnes to 3.7-million tonnes.

Jupiter’s marketing branch earned $7.3-million in marketing fees.

The group generated underlying earnings before interest, taxes, depreciation, amortisation and impairment (underlying Ebitda) of $44.8-million and an Ebitda of $57.5-million.

During the period, the group successfully disposed of its exploration and evaluation assets, leaving Jupiter to concentrate on its single asset.

A gain of $12.6-million was recognised during the year on disposal of the group’s exploration and evaluation assets following the demerger of its Central Yilgarn Iron Ore assets.

The board has declared an unfranked final dividend of A$0.01 apiece. This dividend reflects an 84% pay-out ratio for the second half of full-year 2022 and a $19.6-million payout.

“Full-year 2022 was a challenging year for a number of reasons: above-average rainfall in the mine causing operational delays and rail logistics challenges [as a result of] weather, cable damage and derailments,” acting CEO Scott Winter says.

He notes that the mine continues its low cost of operations and delivered strong profitability even in a high shipping cost and depressed manganese price environment.

“Jupiter has worked through a number of changes, notably the change to the board and executive and the divestment of the exploration and evaluation assets. After delivering a 6.1% dividend yield in full-year 2022 we are excited for what full-year 2023 will bring.

“We look forward to working with Tshipi to safely optimise operations at the mine, whilst also investigating other opportunities to grow Jupiter’s manganese business,” he says.