Latest news with #Thungela
IOL News
15 hours ago
- Business
- IOL News
Thungela maintains financial strength despite 80% drop in interim profits
Thungela's full year guidance for export saleable production of 12.8 million tons to 13.6 million tons 'remains appropriate as production is seasonally weighted towards the second half' of the year. Image: File photo Tawanda Karombo Thungela Resources remains in a strong financial position despite an 80% plunge in interim profits for the period to end June, with its stronger balance helping it to continue with strategic investments after paying a R2 per share half-year dividend. Shares in Thungela were 2.74% weaker at R88.17 in afternoon trade on the JSE on Monday, extending the stock's 6% and 5% fall in the past seven and 30 days, respectively. Headline earnings per share (HEPS) for the half-year period to June 30 fell by 80% to 192 cents on the back of lower coal prices on global markets, although its strong balance sheet brightened up future prospects. 'Despite challenging markets, Thungela's balance sheet is strong,' said Greg Davies, head of wealth at Cratos Capital. Thungela has net cash holdings of R6.3 billion, which will help the company by 'ensuring financial resilience' in spite of the 12% plunge in interim revenues to R14.8bn. More importantly, Thungela is set to 'continue (with) strategic investments' such as the Zibulo North Shaft and Elder, which are 'on track' and crucial 'for long-term sustainability as some mines approach closure,' said Davies. Cash flows from operating activities for the half year amounted to R1.2bn. After investing R703 million in sustaining capital expenditure, the company closed the period in an adjusted operating free cash flow position of R484m. 'Our robust balance sheet position enables us to execute on our core strategic priorities. We continue to reserve R500m to complete the Zibulo North Shaft project and a further R300 million to complete the Lephalale Coal Bed Methane project,' said Thungela CEO, July Ndlovu. Despite the HEPS and revenue plunge for the period under review, Thungela is in addition to declaring the R2 interim dividend undertaking a share buyback of up to R140m subject to favourable market conditions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ndlovu said it was 'appropriate' for the company to maintain 'a cash buffer' of R5bn given the weak coal prices, US dollar weakness and supply chain risks emanating from ongoing trade and tariff uncertainties. Thungela also has undrawn credit facilities of R3.2bn. Global trade and tariff uncertainties currently pervading world markets have occasioned weak demand in key coal demand regions. This has translated to softer prices, a situation reminiscent of the Covid-19 pandemic. Thungela's financial performance for the half-year under review thus reflect the continued pressure on coal prices, with the average realised export prices in South Africa and Australia declined by 11% and 10%, respectively, during this period. The company blamed the softer coal prices as well as a weaker US dollar to South African rand exchange rate, for the revenue plunge. In South Africa, Thungela's export saleable production, however, increased by approximately 300 000 tons to 6.4 million tons mainly due to productivity gains at Zibulo and Mafube. Production at Khwezela was impacted by abnormally high rainfall in the period. The free on board (FOB) cost per export tonne excluding royalties for the period of R1 258 was in line with Thungela's guidance range. Its full year guidance for export saleable production of 12.8 million tons to 13.6 million tons 'remains appropriate as production is seasonally weighted towards the second half' of the year. Consequently, Thungela deems its guidance for FOB cost per export tonne excluding royalties of R1 210 to R1 290 as appropriate. Positively though for Thungela, the South African coal industry continues to benefit from the improved rail performance. It said over the first half of the year, Transnet Freight Rail achieved an annualised run rate of 54.3 million tons compared to 51.9 million tons in the same period a year ago. 'The improved rail performance stems from the ongoing industry collaborative initiatives as well as further optimisation projects, such as the signalling project, which are expected to improve rail performance going forward,' noted Ndlovu. BUSINESS REPORT
Reuters
a day ago
- Business
- Reuters
Thungela expects industry-wide thermal coal output curbs due to weaker prices
Aug 18 (Reuters) - Global thermal coal producers are expected to curtail output as low prices for the fossil fuel persist amid an uncertain economic outlook, South African coal miner Thungela's outgoing CEO July Ndlovu said on Monday. South Africa's top thermal coal exporter reported an 80% slump in its profit to 248 million rand ($14 million) in the six months to June 30, mainly due to lower prices for the fossil fuel. Thungela said geopolitical tensions and rising tariffs were significantly disrupting global supply chains and constraining economic growth, hitting coal demand and prices. Neither the company nor Ndlovu elaborated. Thermal coal prices have also come under pressure from a global shift away from the polluting fuel to cleaner energy sources, as well as increased domestic production in top import markets China and India. The low prices could see further cuts in output after major producers in Indonesia and Colombia slowed down production while Australia's production was hurt by accidents and bad weather, Ndlovu said. "Further production curtailment is likely to aid rebalancing of supply and demand in the seaborne market," Ndlovu said. "I expect supply discipline to continue going forward." The miner said average realised thermal coal export prices in South Africa and Australia declined by 11% and 10%, respectively, in the first half of 2025. Thungela still expects to produce 12.8 million to 13.6 million metric tons of thermal coal from South Africa this year, and between 3.7 million and 4.1 million metric tons from its Ensham mine in Australia. ($1 = 17.6117 rand)
Reuters
a day ago
- Business
- Reuters
South Africa's Thungela half-year profit plunges 80% on weak coal prices
Aug 18 (Reuters) - South African thermal coal exporter Thungela Resources' (TGAJ.J), opens new tab half-year profit fell 80% due to weaker prices for the fossil fuel, it said on Monday. Thungela posted headline earnings per share of 1.92 rand ($0.1093) rand in the six months to June 30, compared to 9.52 rand during the same period last year. ($1 = 17.5707 rand)
TimesLIVE
08-08-2025
- Business
- TimesLIVE
Thungela flags profit plunge on weak thermal coal prices
Thungela Resources expects its half-year profit to fall by as much as 85%, mainly due to lower thermal coal prices as global economic uncertainty affects energy demand, the coal miner said on Friday. Thungela said it expects headline earnings per share (HEPS) to be between R1.40-R2.10 in the six months to June 30, compared to R9.52 during the same period last year. Thungela is South Africa's biggest thermal coal exporter and along with peers it has been forced to cap output to match limited freight rail and port capacity provided by Transnet. Thermal coal demand has also slowed in key markets China and India after increases in domestic coal production. Average coal prices through Richards Bay were 14% lower during the six months compared to last year as tariff-induced instability in global trade affects major economies and energy demand. The average export price in Australia, where Thungela owns the Ensham mine, was 11% lower compared to the same period last year, it said. Thungela said it also incurred R285m in restructuring costs related to its Goedehoop and Isibonelo operations which reach the end of their lives this year. The company will release its half-year results on August 18.
The Citizen
23-06-2025
- The Citizen
2 men feared trapped in abandoned eMalahleni mine
Two men are believed to be trapped inside an abandoned mine close to Duvha Park in eMalahleni, Mpumalanga. Witbank News reports that, according to information received, the men went to the mine with a group to 'hustle'. Police were on the scene with search dogs, but have found no sign of the missing men so far. 'The two missing men have been trapped inside the abandoned mine since June 13 and cannot be found,' says Vosman Police Station spokesperson Captain Vusi Mnisi. 'The site is extremely dangerous, and it is very risky to retrieve them. We are currently waiting to hear from the mine management to see if they will assist with recovery efforts,' he adds. This comes after a missing person's report was filed following one man's failure to return home. According to police, the missing man told his girlfriend he was going to Vosman Cycle near KG Mall but never came back. After attempts to reach him failed, family members were informed by an unknown man driving a white Mercedes-Benz that the missing man and another person were stuck inside the mine while three others escaped. The man left without providing full details or identification. Hulisani Rasivhaga, Thungela's head of communications, has confirmed the incident. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
