Thungela Resources (TGA) Trading Update summary

Strategic and Operational Overview

• Maintained a fatality-free record for 27 consecutive months, supporting strong operational performance.

• Focused on ESG goals, asset optimization, diversification, and disciplined capital allocation.

• South African export saleable production for H1 2025 expected at 6.4Mt, up from 6.2Mt in H1 2024, driven by improved rail and underground output.

• Australian Ensham production for H1 2025 forecast at 1.6Mt, down from 2.1Mt in H1 2024 due to challenging geology, with improvement expected in H2.

• Goedehoop and Isibonelo mines are nearing end-of-life, with restructuring processes underway.

Market Environment and Pricing

• South African coal prices fell 12% and Australian prices dropped 24% year-on-year, with realized prices down 15% and 11% respectively.

• Richards Bay Benchmark coal price averaged USD91.74/t YTD, down from USD105.30/t in FY 2024; Newcastle Benchmark averaged USD101.71/t, down from USD134.85/t.

• Realised export price through Richards Bay averaged USD78.37/t YTD, with a 14.6% discount to benchmark, reflecting weaker demand and wider grade differentials.

• Australian realised export price averaged USD109.93/t, supported by fixed price contracts, but subject to future price adjustments.

• Market forward curves suggest price recovery in 2026, supporting margin improvement.

Financial and Trading Update

• Maintained $700 million in currency forwards at just over 19 rand/USD, with $500 million maturing in H2 2025 and $200 million in 2026.

• South Africa FOB cost per export tonne (excl. royalties) for H1 2025 expected marginally above guidance (R1,210–R1,290/t) due to lower domestic revenue offset.

• Ensham FOB cost per export tonne (excl. royalties) for H1 2025 expected above guidance (R1,470–R1,580/t) due to lower production.

• CapEx spend of ZAR 1.2 billion in H1, about one-third of full-year guidance, with spending weighted to H2.

• Net cash at 30 June 2025 expected between R5.9bn and R6.1bn, with undrawn facilities of R3.2bn.