Jupiter Mines : 2022 Annual Report

For personal use only

Annual Report 2022

jupitermines.com

For personal use only

CORPORATE DIRECTORY

Australian Business Number 51 105 991 740

Directors

Ian Murray

Non-executive Chair; Independent

Scott Winter

Non-executive Director; Independent; Acting Executive Director

Peter North

Non-executive Director; Non-Independent

Patrick Murphy

Non-executive Director; Non-Independent

Bo Sung (Ben) Kim

Non-executive Director; Non-Independent

Brian Beem

Non-executive Director ; Non-Independent (Alternate to Patrick Murphy)

Executives

Scott Winter

Acting Chief Executive Officer

Melissa North

Chief Financial Officer and Company Secretary

Principal and Registered Office

Level 7

16 St Georges Terrace

Perth WA 6000

Telephone: [phone]

Email: [e-mail]

Website: www.jupitermines.com

Share Registry

Link Market Services Limited

QV1 Building, Level 12

250 St Georges Terrace

Perth WA 6000

Telephone: [phone]

Fax: [phone]

Email: [e-mail]

Website: www.linkmarketservices.com.au

Auditors

Grant Thornton Audit Pty Ltd

Level 43,

152-158 St Georges Terrace,

Perth WA 6000

Telephone: [phone]

Facsimile: [phone]

Email: [e-mail]

Website: www.grantthornton.com.au

For personal use only

CONTENTS

Corporate Directory

Letter from the Chair

Operating and Financial Review

Tshipi Manganese Mine

Manganese Marketing

Environmental, Social and Governance Report

Tshipi Mineral Resources and Ore Reserves Update

Directors' Report

Remuneration Report

Corporate Governance Statement

Annual Financial Report

onsolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Directors' Declaration

Auditor's Independence Declaration

Independent Auditor's Report

Additional Information for Listed Companies

ANNUAL REPORT 2022  1

Inside Front Cover 2 3 3 8 10 16 21 26 34 48 49 50 51 52 53 82 83 84 86

2  JUPITER MINES LIMITED

Letter From the Chair

Dear Shareholders,

onlyOn behalf of the Board of Jupiter Mines, I am pleased to present the Annual Report for the financial year ending 28 February 2022. This is my first Chair's Letter to you, having been appointed to Jupiter's Board as a Non-Executive Director on 16 February ahead of assuming the role of Non-Executive Chair from 1 May.

useI joined Jupiter with extensive experience in the global mining industry and in capital markets, having held senior executive and leadership roles with mining and exploration companies across Australia, Africa and North America. I am driven by team success and delivering sustained, positive outcomes for all shareholders.

Shareholder dissatisfaction and the fourth consecutive personalannual vote against the remuneration report at the 2021

Annual General Meeting led to a Spill Meeting in October, nd the subsequent departures of Managing Director

Priyank Thapliyal and Non-Executive Chair Brian Gilbertson.

In November, Peter North and Scott Winter were appointed as Acting Chair and Acting Chief Executive Officer, respectively, and I commend their efforts over the past six months to bring stability to the Company and position it for future and ongoing success.

Global events, including COVID-19 and soft manganese p ices, have created a challenging environment for Tshipi though the mine and its management team have performed well.

Tshipi, in which Jupiter has a 49.9 per cent economic interest, had another profitable year and maintained production, reduced unit costs and weathered a significant increase in freight costs. Tshipi achieved a 9.8 per cent

Forincrease in production from 3.4Mt to 3.7Mt while reducing the average FOB cost from US$2.03 to US$1.93 per dmtu.

The safety performance at Tshipi was excellent, with injury rates remaining low, and this remains a strong focus for your new Board and Executive.

The financial performance at Tshipi allowed Jupiter to declare a group net profit after tax of $54 million and a final, unfranked dividend of 1¢ per share, complementing the interim unfranked dividend of 0.5¢ per share.

During the year, Jupiter also completed the demerger of Juno Minerals Limited, which housed our non-core Western Australian iron ore assets, via an in-specie distribution to Shareholders. Juno listed on the ASX on 12 May 2021.

Jupiter has commenced this new financial year in a strong position to concentrate on Tshipi and consider high-value opportunities to grow our core manganese business.

In addition to its traditional role in the production of stainless steel, manganese is fast emerging as a sought- after battery metal because of its comparatively low cost and strong safety characteristics. This is an exciting advance for companies like Jupiter that have world-class manganese assets like Tshipi.

I am excited about Jupiter's future and the opportunities that lie in front of us.

In closing, I would like to thank my fellow Directors and the Jupiter team, led by Scott and our Chief Financial Officer Melissa North, for their support and dedication over the past year.

I also thank all Shareholders for your ongoing support of Jupiter and look forward to meeting many of you over coming months, including at our AGM in Perth on 26 July.

Ian Murray

Non-Executive Chair

For personal use only

ANNUAL REPORT 2022  3

Operating and Financial Review

Jupiter Mines Limited (Jupiter or the Company) has a 49.9% interest in Tshipi é Ntle Manganese Mining Proprietary Limited (Tshipi), which operates the Tshipi Manganese Mine in South Africa.

For FY2022, Jupiter recorded a Group net profit after tax of $54.0 million (FY2021: $67.5 million). The Group generated underlying earnings before interest, tax, depreciation, amortisation and impairment (underlying EBITDA) of $44.8 million and an EBITDA of $57.5 million (FY2021: both $66.9 million).

Jupiter successfully divested its Central Yilgarn Iron assets via a demerger of Juno Minerals Limited (ASX: JNO), and a gain of $12.6 million was recognised during the year on disposal of these assets.

Share of profit from Tshipi was $42.8 million (FY2021: $62.9 million), down 32%, due to higher freight costs and continued low manganese prices. Tshipi achieved an increase in production tonnes of 9.8% from 3.4 million tonnes to 3.7 million tonnes in FY2022, and a reduction in average free on board (FOB) cost from US$2.03 to US$1.55 per dry metric tonne unit (dmtu). Jupiter's marketing branch earned $7.3 million in marketing fees for FY2022 (FY2021: $8.2 million).

Tshipi Manganese Mine

The Tshipi mine is an open-pit manganese mine with an integrated ore processing plant located in the Kalahari Manganese Fields, in the Northern Cape Province of South Africa, which is the largest manganese bearing geological formation in

the world. Tshipi remains the largest manganese mine in South Africa and one of the five largest globally, with a long-life resource and low operating costs.

Figure 1: Tshipi Manganese Mine location map