Jupiter Mines (ASX:JMS) - CEO, Priyank Thapliyal (left)
CEO, Priyank Thapliyal (left)
Source: Business News
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  • Jupiter Mines (JMS) has declared a two-cent final dividend for its 2021 financial year after posting $67.5 million in net profit despite COVID-19 woes
  • The majority of the profit came from the Tshipi Manganese mine in South Africa, of which Jupiter owns 49.9 per cent in a joint venture deal
  • Over Jupiter’s 2021 financial year, which ended in February, the Tshipi mine produced 3.35 million tonnes of iron ore and shipped 3.42 million tonnes
  • This is the second-highest export volume ever recorded from the mine and comes despite COVID-19 troubles
  • However, the average price of manganese declined in 2020, meaning FY21 profits from the mine were still around 29 per cent lower than the year before
  • Nevertheless, Jupiter still paid a one-cent interim dividend over the financial year and will pay its two-cent final dividend on May 21
  • Shares in Jupiter Mines are up 3.17 per cent this afternoon to trade at 32 cents each

Jupiter Mines (JMS) has declared a two-cent final dividend for its 2021 financial year after posting $67.5 million in net profit despite COVID-19 woes.

The manganese and iron ore miner said it remained profitable over the financial year, which spanned from March 1, 2020, to February 28, 2021, even as manganese prices declined sharply at the end of February last year.

As such, the net profit result of $67.5 million is around 29 per cent lower than the $94.9 million in net profit from the year before. Despite this, Jupiter still coughed up a one-cent interim dividend over the 2021 financial year and will pay out a two-cent final dividend in May. Both are unfranked.

Sturdy South African earnings

The majority of Jupiter’s 2021 financial year profit came from the Tshipi Manganese mine in South Africa’s Northern Cape province.

Jupiter owns 49.9 per cent of the world-class manganese mine in a joint venture with private South African miner Tshipi é Ntle. According to Jupiter, the Tshipi mine is designed to produce 2.4 million tonnes of manganese ore per year at an average grade of 37 per cent manganese.

The mine has been producing and exporting manganese ore since 2012.

Over the 2021 financial year, the Tshipi mine produced 3.35 million tonnes of iron ore and shipped 3.42 million tonnes of the product. For reference, the mine produced and exported 3.41 million tonnes the year before.

This means despite COVID-19 restrictions and uncertainties over FY21, Tshipi achieved its second-highest export volume ever recorded and ended the financial year as the largest manganese ore exporter in South Africa.

Despite the strong sales, however, the average price of Manganese over the 2021 financial year was US$3.83 (around A$4.94) per dry metric tonne unit (dmtu), compared to a price of US$4.18 per dmtu the year before and US$6 per dmtu over the 2019 financial year.

As such, though production and exports were strong, overall profit from Jupiter’s share of the manganese mine declined.

Meanwhile, Jupiter wholly owns the Central Yilgarn Iron Ore Project near Kalgoorlie in Western Australia.

The company’s revenue from ordinary activities — meaning outside of earnings from the Tshipi mine — came in at $8.2 million for the year, down from $10.35 million the year before.

This translated to a $4.26 million profit from operations over the 2021 financial year.

The record date for Jupiter’s upcoming dividend is May 7, 2021, with the payment expected to be made on May 21.

Shares in Jupiter Mines are up 3.17 per cent at 1:15 pm AEDT to 32 cents each. The company has a $631 million market cap.

JMS by the numbers
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