Tshipi é Ntle Manganese Mining, in which ASX-listed Jupiter Mines has a 49.9% beneficial interest, achieved record production at the Tshipi manganese mine in the Kalahari manganese field for the quarter ended December 31, 2023.

Production was 1.02-million tonnes, a 29% increase on the previous quarter, and a 26% increase on the prior year’s corresponding period.

Sales were lower following a strong first quarter, in line with expectations for the financial year.

Sales were 764 162 t, an 18% decrease on the previous quarter, and a 10% decrease on the prior year’s corresponding period.

Cost of production was $2 per dry metric tonne unit free on board, a 3% increase on the previous quarter, and a 6% decrease on the prior year’s corresponding period.

Waste mining was down 11% from the previous quarter, mainly owing to labour availability over the Christmas period and production hours lost to extreme weather, with the bulk of the rainy season occurring during the quarter and continuing until February this year.

Graded ore production was in line with the previous quarter.

Production volumes significantly increased during the quarter, with Tshipi achieving processing records during this period.

Jupiter highlights that Tshipi held healthy stockpiles of all products at the end of December.

There were two lost-time injuries in the quarter, and the total recordable injury frequency rate was 0.30, compared to the last quarter's 0.24.

In terms of logistics and sales, South African road volumes remained subdued owing to market conditions and the opportunity to increase rail volumes.

Rail volumes during the quarter were impacted on by derailments on the Saldanha and Port Elizabeth corridors.

Tshipi completed the shipment of its first vessel through East London in October 2023, with further volumes shipped in November and December 2023.

Sales volumes moderated in the quarter. This was mainly a function of timing, with very strong sales volumes seen in the first quarter of the financial year and a stronger sales quarter expected in the third quarter, Jupiter points out.

Two shipments that were expected to have occurred in December 2023 “rolled into” January this year, from a timing of activity perspective, it adds.

As a result, sales volumes remain on track for the financial year.

Tshipi recorded earnings before interest, taxes, depreciation and amortisation of A$13-million and a net profit after tax of A$10.2-million for the quarter, a decrease on the previous quarter (A$32.7-million and A$22.2-million, respectively).

The reduction was mainly owing to reduced sales compared to the preceding quarter, as well as lower market prices for manganese ore.

Looking at the market, Jupiter says that global crude steel production decreased in the quarter, although a relatively stable global crude steel production was noted against the prior year corresponding period.

Seaborne manganese ore prices moved within a narrow range in the quarter, as manganese ore port stock levels in China remained elevated and an oversupplied silicomanganese market placed pressure on alloy prices.

Manganese ore producers were negatively impacted on by increasing ocean freight rates during the quarter owing to factors impacting vessel availability, including increased demand from other bulk commodities and delays caused owing to the drought-stricken Panama Canal, Jupiter indicates.

Manganese ore price support has started, related to a reduction in portside manganese ore stockpiles in China. This was owing to lower exports from manganese ore-producing countries to China as a result of factors including the low price environment, logistical disruptions and demand from other Asian countries.

This reduction in manganese ore port stocks has further coincided with restocking activities by smelters ahead of the Lunar New Year holiday.

All Tshipi information is reported on a 100% basis.