Thungela Resources (TGA) Investor Update summary

Operational performance and production

• Achieved 21 consecutive months of fatality-free operations, reflecting strong safety performance.

• Full-year export sale of production in South Africa expected at 13.4 million tons, above guidance and 9% higher year-on-year.

• Australian export sale of production expected at 4 million tons, exceeding revised guidance due to productivity gains.

• Export equity sales in South Africa and Ensham both increased, supported by improved rail performance and operational efficiency.

• FOB cost per tonne expected below guidance in both regions, driven by higher production and cost initiatives.

Rail and logistics improvements

• Transnet Freight Rail initiatives led to a 19% improvement in annualized run rate post-maintenance, reaching up to 56 million tons.

• Additional locomotive capacity and signaling upgrades contributed to logistics improvements.

• Sustained run rates above 50 million tons post-shutdown, with potential to reach 60 million tons if current momentum continues.

• Installed rail capacity supports further volume increases, with flexibility to ramp up production if logistics allow.

Market conditions and pricing

• Geopolitical tensions continue to support coal prices despite global economic headwinds.

• Richards Bay benchmark coal price averaged $105/tonne YTD, down from $121/tonne in 2023; Newcastle benchmark at $136/tonne, down from $173/tonne.

• Realized export prices for South Africa and Ensham declined year-on-year, with discounts narrowing due to the end of the Anglo American marketing arrangement.

• Premium Asian buyers are diversifying sources, supporting medium-term market outlook.