ASX-listed Jupiter Mines has reported that the Tshipi manganese mine, in South Africa, achieved a solid first quarter of its 2027 financial year with production, logistics and sales volumes ahead of plan.

In its activities report for the quarter ended September 30, Jupiter notes that production and sales for Tshipi were 823 800 t and 848 566 t, respectively.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) at Tshipi were A$22.5-million for the quarter, lower than the previous quarter, largely owing to lower manganese prices and relative sales volumes.

Cash decreased by 33% from the previous quarter end to A$86.2-million after the dividend payment and working capital movements during the quarter.

During the quarter, Tshipi declared and paid a final dividend of R350-million to its shareholders for the 2026 financial year, ended on June 30.

Jupiter has a 49.9% beneficial interest in Tshipi é Ntle Manganese Mining, which operates the Tshipi manganese mine in the Kalahari manganese field in South Africa.

Jupiter says the mining of graded ore was 19% above the prior corresponding period (PCP) production level. While production was 10% lower quarter-on-quarter, it was above planned production, despite adverse weather conditions experienced in the quarter.

Correspondingly, waste stripping increased by 11% year-on-year and total waste and low-grade mining volumes increased by 27% quarter-on-quarter.

Tshipi’s high-grade ore production was 21% higher than the PCP and marginally lower than the previous quarter. Low-grade ore production was actively limited owing to market conditions.

Unit cost of production increased marginally from the previous quarter (1%) to $2.51 per dry metric ton unit (dmtu) on a free-on-board basis, owing to movements in the dollar:rand foreign exchange rates.

The company notes that logistics volumes decreased marginally by 1% for the quarter. Road tonnes were restricted to the road portion of the Lüderitz channel, with no South African road volumes moved owing to the availability of rail volumes, which were ahead of plan for the quarter.

Sales volumes decreased in the quarter by 10%, after a strong sales quarter in the fourth quarter of the 2026 financial year. Jupiter says sales volumes for the first quarter of the 2027 financial year were ahead of plan and historical first-quarter sales volumes (1% up on PCP).

Jupiter interim CEO Matthew Jarvis explains that manganese ore prices displayed a seasonal declining trend at the beginning of the quarter as global manganese ore supply exceeded lower downstream demand going into the northern hemisphere winter.

He notes that manganese ore prices have subsequently moderated and have traded sideways within a narrow range, supported by producers’ cost side factors and a reduction in manganese ore supply.

He adds that crude steel production in China continues to be impacted by weaker demand for long steel products, with the construction sector showing heightened pressure, as noted by the World Steel Association’s (worldsteel’s) Short Range Outlook for forecast steel demand for 2026 and 2027, released in October.

Global steel demand for this year is forecast to be flat.

For 2027, Jarvis notes that global steel demand is expected to continue to grow by 1.7%, a little behind the 2.2% previously forecast estimate. The downward adjustment for both years is attributable to a higher than previously forecast contraction in China steel demand and energy-market disruptions.

He explains that worldsteel had, in its previous forecast, expected the Middle East conflict to be less prolonged and largely resolved by mid-2026, which has not been the case. The impact on global energy markets, owing to prolonged conflict has not yet been as severe as they had anticipated.

Post quarter-end, Jarvis says the manganese ore market has continued to operate in a stable manner, with key figures, including prices, moving in a narrow range.

Meanwhile, as previously stipulated, Jupiter notes that MD Brad Rogers has resigned to accept the CEO role with another company. Rogers will remain as MD until the end of November, focused on the delivery of key strategic outcomes, and will then be available to the company in a consultancy capacity until the end of February 2027.

Jupiter’s board has appointed Jarvis as interim CEO, effective September 11.

Jarvis joined Jupiter in 2022 and is a mining engineer with 25 years’ experience across South Africa and Australia, including 16 years focused on the manganese sector.