Thungela Resources (TGA) H1 2025 earnings summary

Executive summary

• Net profit for H1 2025 was R248 million, down from R1.2 billion in H1 2024, reflecting lower coal prices and weaker demand, but a strong balance sheet and disciplined capital allocation were maintained.

• Maintained a fatality-free record for over two and a half years, with strong ESG initiatives and support for local communities and employees.

• CEO transition underway, with Moses Madondo introduced as incoming CEO.

• Completed acquisition of 100% interest in Ensham Mine and advanced key projects on schedule and budget.

• Returned 87% of adjusted operating free cash flow to shareholders, exceeding the 30% dividend policy.

Financial highlights

• Revenue declined to R14.8 billion from R16.8 billion year-over-year, mainly due to lower realised coal prices and a weaker US dollar.

• Adjusted EBITDA dropped to R691 million (margin 4.7%) from R2.1 billion (13%) year-over-year.

• Net profit fell to R248 million (H1 2024: R1.2 billion); EPS: R1.93 (H1 2024: R9.52).

• Net cash position at R6.3 billion as of 30 June 2025, down from R8.7 billion at year-end 2024.

• Dividend per share maintained at R2; share buyback up to R140 million.

Outlook and guidance

• Full-year export saleable production guidance for South Africa: 12.8–13.6Mt; Ensham: 3.7–4.1Mt, with Ensham expected at the lower end due to geological challenges.

• South Africa FOB cost per export tonne (excl. royalties) guided at R1,210–R1,290; Ensham at R1,470–R1,580, both expected at the upper end.

• Sustaining and expansionary capital spend ranges remain appropriate, with spend weighted to H2 and full-year capex expected at the lower end of guidance.

• Ongoing monitoring of sustaining CapEx to preserve balance sheet flexibility amid macro uncertainty.

• Committed expenditure for completion of life-extension and LCBM projects.