[Ferro-Alloys.com] JMS Manganese Ore Q4 FY2026 Quarterly Activities Report

Summary

The June 2026 quarter saw FY2026 close with a strong finish. Sales and production both increased quarter-on-quarter (QoQ) and full year targets for sales and overall production were exceeded for FY2026.

EBITDA was up QoQ (by 6%) due to higher manganese prices. Cash was up marginally (0.2%) after year end royalty and tax payments and working capital movements.

Unit costs remained relatively stable at US$2.48 for the quarter (from US$2.50 in Q3 FY2026, a 1% decrease).

The June 2026 quarter saw average (realised) manganese prices increase on the March 2026 quarter average (US$4.95/dmtu CIF, from US$4.35/dmtu CIF). The spot price at 30 June 2026 was US$4.64/dmtu (CIF). At the end of July 2026 the spot price is US$4.38/dmtu (CIF), 6% lower than the price seen at the end of the June 2026 quarter and 5% higher than the four year historical average.

Freight rates decreased to US$33.80 per tonne at the end of the June 2026 quarter (Port Elizabeth to Tianjin) compared with US$36.90 per tonne at the start of the June 2026 quarter (8% decrease). By the end of July 2026, freight rates increased to US$38.70 per tonne.

Tshipi Manganese Mine

Key production, sales and financial information for Tshipi for the quarter ended 30 June 2026, and comparatives, are presented below:

SAFETY AND SUSTAINABILITY

No lost time injuries were recorded during the quarter, with TRIFR for the quarter of 0.37 (previous quarter 0.37).

Mining of graded ore increased by 22% due to increased barrier pillar mining, and waste mining volumes increased by 14% from the previous quarter.

Tshipi high-grade ore production increased by 16%, and low-grade ore production increased by 2%.

Cost of production remained relatively stable, with a modest decrease of 1% to US$2.48 per dmtu on an FOB basis for the quarter.

LOGISTICS AND SALES

Logistics volumes increased by 3% for the quarter. South African road haulage was again not utilised during the quarter (excluding the road portion of the Lüderitz (Namibia) channel).

Sales volumes increased in the quarter by 12%, with Tshipi achieving a total of 3.5 million tonnes sold for FY2026. This outcome exceeded expectation and the historical average of 3.4 million tonnes sold per annum.

CORPORATE AND FINANCIAL

Tshipi recorded an EBITDA of A$34.2 million and NPAT of A$21.4 million for the quarter, an increase on the previous quarter (A$32.2 million and A$21.0 million, respectively). The increase was mainly due to the increase in manganese prices.

The South African Rand (Rand) was relatively stable against the US Dollar and Australian Dollar over Q4 FY2026, with modest movements compared to prior quarters. Commodity prices remained supportive while domestic sentiment in South Africa was steady but not a significant catalyst for further appreciation.

Against the Australian Dollar, the Rand showed limited movement, with the Australian Dollar continuing to be supported by resilient commodity demand and relatively firm global growth expectations.

Looking ahead, the Rand is expected to remain range-bound, with global risk sentiment, US Dollar direction and commodity price trends continuing to be the primary drivers.

Marketing and Market Outlook

JUPITER MARKETING

Sales and financial information for Jupiter’s marketing entity for the quarter ended 30 June 2026, as well as comparatives, are presented below.

The prices shown below relate to the prices realised by Jupiter’s marketing team for the 49.9% share of Tshipi sales that are marketed by Jupiter.

MARKET COMMENTARY AND OUTLOOK

During the June 2026 quarter, the manganese ore market was influenced by geopolitical factors, adequate supply and moderate demand.

These factors contributed to the Fastmarkets manganese ore semi carbonate index (36.5% Mn, CIF Tianjin) decreasing from US$5.16/dmtu on 27 March 2026 (corresponding FOB index: US$4.14/dmtu) to US$4.64/dmtu on 26 June 2026 (corresponding FOB index: US$3.71/dmtu). Although prices moderated during the quarter, they remained above recent average levels (historical four year average: US$3.34/dmtu FOB).

Ocean freight costs improved through the quarter as concerns as to the conflict in the Middle East abated late in the quarter. The freight rate from Port Elizabeth to Tianjin, as referenced weekly by Fastmarkets, was quoted at US$33.80/tonne on 26 June 2026, compared to US$36.90/tonne on 27 March 2026. Ocean freight rates at quarter end were still approximately US$6.50/tonne higher than before the Middle East conflict began, with the material decline in crude oil prices witnessed through the quarter not yet fully filtering through to a reduction in ocean freight rates.

Concerns in the previous quarter regarding potential supply chain disruptions for manganese ore because of geopolitical factors eased early in the quarter.

These factors contributed to an increase in manganese ore stocks at major ports in China, from 5.0 million tonnes at the beginning of the quarter to 5.6 million tonnes at the end of the quarter (approximating recent year average levels).

Spot silico manganese prices declined through the quarter, by around Chinese Yuan RMB 600/tonne. In response to this, an increasing number of furnaces undertook maintenance and voluntarily reduced production to support silico manganese prices, resulting in silico manganese production declining by 6% on a quarter-on-quarter basis.

Global manganese ore exports increased marginally on a quarter-on-quarter basis, with the main increase in exports from Gabon. Outside of China, a quarter-on-quarter increase in manganese ore exports to India as well as European countries absorbed part of the additional supply.

A reduction in supply to China for June 2026 shipments will filter through to lower arrivals post quarter end. This trend of moderated supply levels is expected to continue in the short term, as price cues have prompted a retreat in higher cost supply. This is expected to result in a near term balancing of the market. At the end of July 2026, FOB prices and Chinese port stockpiles approximate recent year average levels, while the current (end of July 2026) CIF price (US$4.38/dmtu) is around 5% above four year average levels.

Further downstream, global crude steel production was flat during the quarter on a year-on-year comparative basis as well as on an adjusted quarterly basis when considering the shorter month of February.

• [Editor:tianyawei]