Jupiter Mines Limited (ASX. JMS) (Jupiter or the Company), and together with its subsidiaries, the Group, is pleased to provide the following activities report for the quarter ended 30 June 2023.
Jupiter recently changed its financial year end to 30 June (ASX announcement: 31 March 2023).
This report communicates activities and outcomes for the 3 month period ended 30 June 2023 (i.e. reporting according to the new financial year calendar). The information presented in this report, as applicable, are for quarters ending 30 September (Q1), 31 December (Q2), 31 March (Q3) and 30 June (Q4). The four month financial period for the transitional financial year (1 March to 30 June 2023) is also included (TFY2023)
SAFETY AND ENVIRONMENT
Zero lost time injuries occurred during the quarter, continuing an 850 day LTI free record at Tshipi. Tshipi's Total Recordable Injury Frequency Rate was 0.20 as two minor injury incidents (not resulting in lost time) occurred during the quarter.
Waste mining volumes increased during the quarter, reflecting comparatively lower volumes mined from the barrier pillar, as well as a focus on ensuring exposure of graded ore in (new) cuts 12 and 13, commensurate with the mine plan. For the June 2023 quarter, Tshipi mined 233,884 bcm of graded ore. There was also a very significant increase in high grade ore production (28% increase) compared to last quarter, resulting in a strong overall quarter of produced ore. No low grade ore was produced for the quarter, as a result of relatively muted manganese prices during the quarter. The average unit FOB cost of production decreased quarter on quarter mainly as a result of ore lower mining costs, lower than planned geological losses and favourable exchange rate movements.
MARKET COMMENTARY AND OUTLOOK
The manganese ore market softened during the quarter due to weakening demand and a resolution of the supply concerns which had led to an increase in prices in the previous quarter. Ore stocks in China (both of manganese ore and alloys) were also sufficient during the quarter. Crude steel production in China slowed down in comparison to the previous quarter along with seasonally weaker demand from the construction sector (ahead of the traditionally slower Chinese summer period). Outside of China, the manganese ore market was similarly impacted by a combination of weaker demand and sufficient supply, in both manganese ore and downstream markets. This impacted manganese alloy prices and margins, resulting in pressure on manganese ore prices during the quarter. The recent depreciation of the Renminbi against the US dollar has put further pressure on manganese ore prices. Although reported manganese ore port stocks at major ports in China remain elevated, they have started to decrease. Should this trend continue, it may provide some support to manganese ore prices in the near term. Ocean freight rates started to subside during the latter part of the quarter which has provided some assistance to manganese ore producers in terms of FOB price outcomes. Globally, concerns remain around continued heightened inflation and high interest rates and the impact of these factors on industrial production in addition to steel demand. In China, the economy has performed weaker than expected during the quarter which has also led market participants to eagerly await anticipated tangible policy measures to be announced in the near term, with hope for support to the real estate sector. The continued depressed real estate sector has had a knock on effect on both construction and manufacturing activity as well as market confidence.
This announcement has been authorised for release by the Board of Jupiter Mines Limited.
Contact:
Peter Kermode
Tel: +61 411 209 459
Email: pkermode@canningspurple.com.au
About Jupiter Mines Limited
Jupiter Mines Limited (ASX: JMS) is a pure-play manganese company listed on the ASX. Well-led and headquartered in Perth, Western Australia, Jupiter's core asset is a 49.9% stake in Tshipi e Ntle Manganese Mining, an independently operated and managed, black-empowered company that operates the Tshipi manganese mine in South Africa's Kalahari region. Tshipi is one of the world's largest and lowest-cost manganese export operations and has been in production since 2012. Jupiter has a track record of returning value to shareholders, including through regular dividends, and a strategy to grow its exposure to manganese, a key metal used in steel and - increasingly - in the renewable energy space.
JUPITER MINES LIMITED 
