Jupiter Mines : February 2022 Quarterly Report (Q4)

ASX: JMS

31 March 2022

ABN: 51 105 991 740

Registered Office: Level 7

16 St Georges Terrace Perth WA 6000

T [phone] E investorrelations@ jupitermines.comwww.jupitermines.com

Directors & Officers Peter North

Scott Winter Patrick Murphy Ben Kim

Ian Murray

Brian Beem (alternate to Patrick Murphy) Melissa North

Issued Capital Ordinary shares: 1,958,991,033

Primary Asset World class Tshipi Manganese Mine

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 28 February 2022.

HIGHLIGHTS

•  3.3 million tonnes sold and 3.7 million tonnes produced for FY2022 (FY2021: both 3.4 million tonnes). FY2022 EBITDA $139.1 million and NPAT $85.7 million (FY2021: $206.3 million and $134.9 million, respectively).

•  No LTI's in the quarter, TRIFR is 0.95 (Q3: 0.98).

•  February quarter achieved graded ore mining of 244,259 bcm (Q3: 255,036 bcm).

•  Overall total in-situ movement for February quarter was 2.3 million bcm (Q3: 2.9 million bcm), 8% behind target (adjusted for rehandle).

•  On land logistics 9% behind target for the year due to continued rail outages, delays; low grade sales suspended.

•  High grade production exceeded target for the year, with 720,730 tonnes (Q3: 804,137 tonnes) achieved over the quarter (775,114 tonnes overall production) (Q3: 909,510 tonnes).

•  Jupiter's attributable cash balance is $75 million at end of the quarter (Q3: $76 million).

•  Jupiter Directors, Scott Winter and Ian Murray, to conduct a conference call on quarterly results on Friday 1 April 11:30am AEDT.

TSHIPI BORWA MANGANESE MINE (100% BASIS)

Jupiter has a 49.9% beneficial interest in Tshipi é Ntle Manganese Mining Proprietary Limited (Tshipi), which operates the Tshipi Borwa Manganese Mine in the southern portion of the Kalahari manganese field.

Key production, sales and financial information for the quarter ended 28 February 2022 and comparatives are presented below.

Unit

Production SalesTonnes Tonnes

Average CIF price achieved (HGL) Average FOB cost of production (HGL)USD/dmtu

ZAR/dmtu

Earnings before interest, tax & depreciation (EBITDA)

Q4

FY2022

775,114 752,518

24.66

AUD million

43.8

Net profit after tax (NPAT)

AUD million

Cash at bank

AUD million

27.5

Q3

FY2022

Q2

FY2022

909,510 845,421

945,382 807,767

4.60

4.62

26.18

38.7

31.00

30.4

26.6

15.3

119.1

Q1

FY2022

1,049,985 846,214

Full Year	Q4
FY2022	FY2021
3,679,991	891,256

3,251,920 1,051,544

4.56

32.67

26.0

16.2

91.8

4.60

27.61

139.1

85.7

55.0

3.93

34.32

41.4

17.5

71.4

44.1

Safety and Environment

Tshipi continues to show a quarter on quarter improvement in terms of LTIFR and recorded no LTI's for the quarter, resulting in zero LTI's for the financial year. Tshipi have embarked on a safety program "My Safety, My Family, My Community" to continue to enhance safety culture across the site. TRIFR slightly decreased to 0.95 owing to a particular safety focus.

Progress is going well with landowners regarding the biodiversity conservation site and it is expected to have the biodiversity offset declaration process completed in the next two years. Work is continuing with the amendment of the current Environmental Management Plan regarding closure commitments.

Mining and Production

UnitQ4

FY2022

Q3

FY2022

Q2

FY2022

Q1

FY2022

Full Year

FY2022

Q4

FY2021

Mined volume

• - Waste and low grade oreBCM

  2,089,772

  2,669,500

  3,709,033

  3,683,250 12,151,555

  2,675,483

• - Graded ore

BCM

Total Production

244,259 2,334,031

255,036 2,924,536

234,099 3,943,132

271,201 1,004,595

140,661

3,954,451

13,156,150

2,816,144

- High grade - Low grade Total

• 800,025 3,172,131

• 249,960 507,860

634,854 256,402

1,049,985

3,679,991

891,256

Average FOB cost of production (HGL) Average FOB cost of production (HGL) Average CIF price achieved (HGL)

32.67 27.61

2.25 1.86

34.32 2.30

4.56

4.60

3.93

For the February quarter, Tshipi delivered 244,259 bcm of graded ore and 2.33 million bcm of in-situ mining movement. For the financial year, Tshipi ended up 1% ahead of target for graded ore mining and 5% behind on total in-situ mining movement (rehandle accounted for 0.52 million bcm which is not included in total mining movement). Tshipi's operational improvement program with mining contractor Moolmans has continued to show progress with Q4 total movement improving over Q3. High rainfall in January and February continued to affect the operations along with recent excavator availability.

The focus has continued on waste stripping in the barrier pillar with both in-situ and ramp rehandle material a focus in February. This has now exposed a large block of graded ore which is available to Tshipi over the next year and can be readily mined as the opportunities arise in the market. Mining will continue at life of mine strip ratio.

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Figure 1: Overview of Tshipi pit

Processing of high grade ore was 2% below plan overall with a production of 720,730 tonnes for the February quarter which resulted in high grade production being 1.5% above target for the year. Low grade ore was 205,616 tonnes behind for the quarter resulting in being 262,140 tonnes or 34% behind target for the year. This is as a result of limiting the sales of low grade into the market and focusing on alternate mining areas to mine waste. Low grade ore has not been exposed as readily and ROM stockpiles are lower than originally planned.

The high grade fine tonnes were slightly elevated due to the processing of supergene material mined from the barrier pillar with a higher fines content. For the year, the high grade fines content was on target at 15%.

Quarter 4 saw FOB costs continue to be lower than forecast across all elements. Higher than expected shipping costs continued to result in CIF costs being above forecast for the year.

Logistics and Sales

UnitQ4

FY2022

Q3

FY2022

Q2

FY2022

Q1

FY2022

Full Year

FY2022

Q4

FY2021

On-land Logistics Sales

Tonnes Tonnes

749,180 752,518

727,418 845,421

944,499 807,767

852,676 846,214

3,273,773 3,251,920

910,758 1,051,544

Average CIF price achieved (HGL)

4.60

4.62

4.56

4.60

4.19

Tshipi moved a total of 749,180 tonnes for the quarter, with on-land logistics split almost evenly between rail and road. Trucking capacity was available for the increased movement with the lower planned low grade sales.

The issues with rail transport remain, with overall capacity at approximately 90% due to ongoing cable theft, power outages and derailments, impacting throughput to several ports, and consequently impacting exports. Road volumes remain available and were activated over the quarter to assist Tshipi in meeting its shipping schedule for the financial year. Tshipi are exploring all logistic additional alternatives to ensure makeup capacity is available as well as growth potential can be realised when required.

Tshipi shipped 3,251,920 tonnes for the FY2022 year. Two vessels totalling 85,000 tonnes, which were sold as February shipments, rolled over and completed loading during the first week of March.

Tshipi hauled on road approximately 128,000 (13%) of high grade material above plan which in turn resulted in the logistics costs being approximately 8% above planned for the year for high grade material.

Corporate and Financial

Tshipi declared and paid a dividend of ZAR500 million to its shareholders in February.

Discussions have commenced in the quarter with mining contractor Moolmans in regard to production profiles over the coming term of the contract and the possibility of new equipment to aid in the overall performance. These have been positive and are expected to be concluded in the next quarter.

Tshipi recorded an EBITDA of $43.8 million and NPAT of $27.5 million for the quarter, an increase on the previous quarter ($38.7 million and $26.6 million, respectively). Whilst production and sales were down for the quarter, EBITDA and NPAT improved due to a reduction in cost of production and recognition of freight adjustment at year end.

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MARKETING AND MARKET OUTLOOK

Jupiter Marketing

Sales and financial information for Jupiter's marketing entity for the quarter ended 28 February 2022 and comparatives are presented below:

Sales

402,821

451,699

389,555

Average CIF price achieved (HGL)

USD/dmtu

4.65

4.63

4.71

4.64

4.67

3.96

Marketing fee incomeAUD million

1.8

1.7

2.0

1.8

3.8

2.2

EBITDA NPAT

Cash at bank

AUD million AUD million AUD million

1.8 1.2 2.9

1.7 1.4 1.8

1.9 1.5 2.8

1.7 1.0 1.4

3.6 2.5 2.8

2.1 1.6 2.9

Market Outlook

The manganese market was stable for most of the quarter, with prices generally moving within a narrow range. The market started strengthening in the latter half of February 2022, after the Chinese Spring Festival and strong restocking by alloy plants and continued to strengthen through most of March 2022.

The high-grade ore market was supported by reduced supply from producers and reduced availability at the port. The continued strong demand for high-grade ore led to a price increase in February and March 2022.

Semi-carbonate prices in both the portside and seaborne markets followed suit, although price gains were limited when compared to the high-grade ore market mainly as a result of ore availability - both at ports and from South African producers.

Bulk freight rates have continued to decrease through most of Q4, however Jupiter noted more volatility in the freight market recently following Russia's invasion of Ukraine. Manganese ore stocks at main Chinese ports continued decreasing through the quarter following the trend of the preceding 12 month period due to the strong global demand from downstream alloy and steel mills, as noted below. This resulted in more manganese ore being exported from main producing countries to regions outside of China.

The downstream steel market in China showed a promising recovery in Q4 from the reduced levels seen in Q3 and as a result increased manganese alloy production in Q4, led support to manganese ore consumption and the market in general. Industry sources are forecasting 2022 (calendar year) crude steel production in China to be largely in line with 2021 production of 1.03 billion tons. Monetary policy and easing financing restrictions should promote growth in the Chinese economy in 2022 however growth in the steel sector may be limited due to on-going decarbonisation and environmental control measures.

Crude steel production in the rest of the world continued to recover in FY2022 Q4, particularly in India the second largest steel producing country. Growth has been forecast for all main steel producing regions outside of China for 2022 (calendar year) with support in different regions from manufacturing, automotive and construction sectors as post COVID-19 recoveries continue.

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