Jupiter Mines Limited (JMS.AX) Q2 FY2026 Earnings Call Transcript & Summary

Today, I would like to share key highlights from our December 2025 quarterly activities report and our recent announcement in relation to Exxaro Resources. On the 29th of January 2026, Exxaro announced that it has satisfied all conditions for the acquisition of various manganese mining investments in South Africa. This includes a 50.1% ownership in Tshipi and a 19.99% share in Jupiter Mines. Exxaro will acquire the 19.99% share in Jupiter from Ntsimbintle Holdings, paying ZAR 3.69 per Jupiter share on the date of completion. At today's foreign exchange rate, this equates to around AUD 0.33 per Jupiter share. Jupiter will retain its 49.9% interest in Tshipi, and we will continue to exercise joint control over Tshipi operations. There is no change to Jupiter's rights under the Tshipi shareholders agreement, including to our pro rata marketing rights. Formal completion of the transaction is scheduled for the 27th of February 2026. We look forward to Exxaro joining Jupiter as a major shareholder and joint venture partner in Tshipi. Exxaro's investment strengthens our platform for growth and strongly aligns with our strategy to consolidate, and create value across the Kalahari Manganese Field. Turning now to our December 2025 quarterly results. The Tshipi Manganese Mine has delivered another strong operating result with sales and production volumes increasing in line with improved manganese prices. Sales for the period were around 868,000 tonnes, while production reached just over 840,000 tonnes, with higher grade ore prioritized to take advantage of favorable market conditions. Both sales and production remain on track to meet our full financial year target of about 3.4 million tonnes. Performance during the quarter reflects the capability and focus of the Tshipi team and the quality of this world-class asset within the Kalahari Manganese Field. Tshipi's remaining mine life of over 100 years continues to underpin reliable operations and long-term value. During the quarter, Tshipi unfortunately recorded 2 lost time injuries, which were both slip and fall incidents. The Tshipi management team have implemented corrective measures in response to these incidents and to ensure a continued focus on safe operating practices. Cash on hand reduced slightly during the quarter to AUD 137.4 million after first half FY 2026 tax and royalty payments, but cash remains at a healthy level. Tshipi recorded an EBITDA of AUD 21.6 million, which was a decrease of 19% compared to the previous quarter, and this was mainly due to foreign exchange losses. Manganese prices strengthened during the quarter and have continued to rise. Average manganese prices for the December quarter increased to USD 4.10 per dmtu CIF from USD 3.86 per dmtu CIF in the September quarter because of increased consumption and seasonal restocking in China. At the end of January 2026, the spot price is USD 4.32 dmtu CIF, which is 4% higher than the price seen at the end of the December 2025 quarter. Demand for manganese ore in China has remained steady with alloy producers continuing to operate at high utilization rates. Chinese port stockpiles remained broadly consistent with the previous quarter at approximately 4.3 million to 4.4 million tonnes, which is materially below recent historical averages of around 5.8 million tonnes. Within China, demand in northern regions has remained strong, supported by ongoing investment in new and expanded alloy plants, particularly in Inner Mongolia. These investments are focused on improving long-term efficiency, including increased use of renewable energy. Outside China, steel production growth in India remains robust, supported by infrastructure spending, urbanization and post-monsoon restocking activity. Tshipi's operational performance and asset quality continue to support reliable outcomes, while Jupiter remains focused on executing its strategy to deliver long-term value for shareholders. Thank you for your continued support. Further details are available in the full quarterly activities report on our website, along with our latest announcement on the Exxaro transaction.