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Jupiter’s Tshipi mine on track to meet 2020 guidance, despite manganese price decrease

18th December 2019

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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Australia-headquartered miner Jupiter Mines has confirmed that annualised sales for its Tshipi Borwa manganese mine, in South Africa, remain on track to meet the 2020 guidance, despite a decrease in the manganese price.

Tshipi remains cash positive with its low cost of production, Jupiter said, adding that the expansion concept study is progressing for completion by the end of the financial year.

For the third quarter ended November 30, 2019, Jupiter will be paying a dividend of $0.04 a share to shareholders.

ASX-listed Jupiter, which has a 49.9% beneficial interest in Tshipi é Ntle Manganese Mining, which operates Tshipi, reported on Wednesday that the project mined just over 3.3-million of bank cubic meter (bcm), with production reaching about 764 226 t.

Sales were higher at 867 502 t during the period, bringing in a sales revenue of about A$142.5-million.

Earnings before interest, tax, and depreciation was A$51.9-million at the period end.

Overall mining for the year to date remained behind forecast, Jupiter said on Wednesday; however waste mining has seen “best results year to date”, which indicates that plans implemented from October onwards are yielding positive results, the company said.

Mining of the barrier pillar remained ahead of target, even though challenges in mining continued through the quarter owing to the mining of a difficult cut, but has improved substantially from October onwards.

High-grade production was slightly behind forecast, however production in November was significantly improved as a result of the increase in ore mining.

Low grade production was ahead of target year to date, with Tshipi’s cost of production for the year to date standing at R31.51/dmtu.

Overall sales volumes were slightly ahead of target, with rail volumes marginally behind owing to some rail issues on one of the routes to port, which have since been rectified and regular service will continue from December, Jupiter noted.

Road volumes were slightly ahead owing to additional low grade product moved.

Further, Jupiter on Wednesday said that no exploration or development activities were undertaken at the Mount Ida Magnetite or Mount Mason DSO Hematite projects during the quarter.

The company undertook stakeholder consultation in the Mount Mason project and Yunndaga rail siding areas during the quarter, in line with its statutory requirements. This consultation sought to reconfirm existing stakeholder expectations around post-mining land use and any future development timelines.

The Group’s net consolidated cash balance decreased from $75.8-million to $43.4-million during the quarter, owing to payment of its interim dividend on November 21.

Jupiter’s attributable cash (including its share of Tshipi cash) was $92.6-million at the end of the November quarter, calculated as the net consolidated cash above and Jupiter’s 49.9% share of Tshipi’s cash balance.

On October 9, Jupiter appointed Hans Mende to the board of the company. Mende has subsequently appointed Brian Beem as his alternate.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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