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 31 August 2022.
Please note all Tshipi information reported is on a 100% basis, and not Jupiter's 49.9% economic interest. For table of abbreviations see final page of the report.
MARKET COMMENTARY AND OUTLOOK
Crude steel production has decreased during the quarter, on a quarter-on-quarter and year-on-year basis, both on a global scale as well as for many major steel producing countries. Generally, crude steel production continues to be impacted by dampened downstream demand which has continued to be hampered by a downturn in the overall global economic environment. Steel production in China during the quarter continued to be impacted by weak demand from the industrial and construction sectors, particularly buoyed by the sustained depressed real estate sector. A marginal uptick in Chinese crude steel production in August was noted however production levels are still considerably lower than historical levels. The introduction of further stimulus and policy measures, particularly aimed at steel intensive industries, are essential to promote consistent demand recovery. The widespread energy crisis across Europe has resulted in reduced steel production as energy intensive industries, including steel mills and alloy plants, have been forced to curtail or even suspend production. The reduced manganese alloy production, as a result of the European energy crisis mentioned above, has resulted in less demand for manganese ore in Europe as well as some Asian countries, such as India, who are reliant on the European market for manganese alloy exports. Coupled with other factors, such as stock levels, manganese ore demand in regions outside of China has been subdued throughout Q2. This has resulted in higher manganese ore exports being diverted into China, the primary market, which has put pressure on manganese ore prices during the quarter. Seaborne and spot manganese ore prices spiked at the beginning of the quarter as sentiment turned positive following a drop in COVID-19 lockdown measures in main metropolitan areas of China after several weeks of restrictions. Unfortunately, downstream demand failed to materialise, and prices started correcting downwards, as was the general trend through the quarter. Prices faced more pressure through the quarter as imports into the key market increased and consumption of manganese ore by alloy plants decreased as they too started curtailing production due to weakened demand from local steel mills and depressed manganese alloy prices. These factors also contributed to portside manganese ore inventory levels in China increasing by circa 500,000 metric tonnes. Ocean freight rates started easing during Q2 after a sustained period of historically high levels which has also contributed to a reduction in seaborne CIF denominated prices. Freight rates have reduced as a result of global economic factors impacting supply and demand fundamentals but also as costs, such as brent crude oil, have decreased. Manganese ore prices are expected to remain under pressure until such time as downstream demand from alloy plants and, in turn, steel mills recover. Crude steel demand recovery, particularly in China, will in all likelihood need to be spurred by the introduction of major fiscal policy and stimulus measures by the Chinese Central Government. Outside of China, concerns over elevated energy costs and availability will remain an important factor influencing the industry in the short term.
Contact:
Investor and Media
Peter Kermode
Cannings Purple
P: +61 411 209 459
E: 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 Borwa manganese mine in South Africa's Kalahari region. Tshipi Borwa 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. For further information on Jupiter, visit www.jupitermines.com.
Jupiter Mines Limited is an Australia-based independent mining company. The Company, through Tshipi e Ntle Manganese Mining Proprietary Ltd (Tshipi), operates the Tshipi manganese mine, an open pit mine in the Kalahari Manganese Field (KMF) located in the Northern Cape of South Africa. Tshipi is operating at a production run-rate of approximately 3.3 million tons per annum (Mtpa), being is a manganese mine in South Africa. Tshipi produces lumpy and fines manganese ore product with average grades of around 36.5% and 35.5% respectively. Tshipi's logistics operations allow it to adapt export quantities to market conditions. Tshipi uses a combination of rail and road transport to transport processed manganese ore from the mine to various ports, including Port Elizabeth, Saldanha, Cape Town, Port Elizabeth and Durban in South Africa, and Ludertiz in Namibia.
JUPITER MINES LIMITED 
