Thungela Resources (TGA) investor relations material

Executive summary

• Achieved strong operational and financial performance in H1 2026, with disciplined execution, robust balance sheet, and a fatality-free record for 3.5 years, including improved safety metrics across all operations.

• Celebrated five years as a standalone listed entity, returning over ZAR 23 billion to shareholders and ZAR 2 billion to community and employee trusts.

• Continued focus on operational excellence, portfolio optimization, and disciplined capital allocation, advancing life extension projects for long-term value.

Financial highlights

• Adjusted EBITDA rose 91% year-over-year to ZAR 1.3 billion; net profit increased to ZAR 1.4 billion; adjusted EBITDA margin improved to 8.7%.

• Headline earnings per share surged to ZAR 10.95; interim dividend of ZAR 5.50 per share declared, totaling ZAR 773 million.

• Revenue increased to ZAR 15.2 billion, supported by higher export sales and coal prices.

• Net cash position at period end was ZAR 6.1 billion, with ZAR 773 million returned to shareholders.

• Adjusted operating free cash flow reached ZAR 1.9 billion, including ZAR 1.1 billion from FX derivatives.

Outlook and guidance

• Full-year export saleable production guidance reaffirmed at 13.0–13.6Mt for South Africa and 3.9–4.2Mt for Ensham; FOB cost and capital expenditure guidance maintained.

• FOB costs expected to moderate in H2 2026 as production run rates improve.

• Coal prices expected to hold a higher floor amid ongoing geopolitical instability, though currency headwinds persist.