Thungela Resources (TGA) Trading Update summary

Operational performance and production

• Maintained a fatality-free record for nearly three years, supporting strong production momentum.

• South African export saleable production is expected to exceed guidance, reaching 13.7 million tons, driven by Annea ramp-up and strong Mafube performance.

• Ensham in Australia is set to deliver 3.8 million tons, within guidance, despite earlier geological challenges and contracts for lower quality coal.

• Improved Transnet Freight Rail performance, with annualized rate up to 56.6 million tons, benefiting operations.

• Export equity sales in South Africa expected at 13.6Mt, up from 12.6Mt, enabled by higher production and improved rail.

Market conditions and pricing

• Thermal coal prices declined in 2025, with Richards Bay averaging $89.63/ton (down from $105.30/ton in 2024) and Newcastle at $105.11/ton (down from $134.85/ton); Newcastle hit a four-year low of ~$90/ton in September.

• South African coal achieved a price of $76/ton, reflecting wider discounts and margin pressure.

• Demand from China and India was below expectations, with Indian steelmakers shifting to lower-cost imports.

• Forward price curve is in contango, indicating expected price recovery into 2026 and 2027.

• Global economic uncertainty and currency strength impacted competitiveness and demand.

Costs, CapEx, and financials

• South Africa's FOB cost per ton is expected below guidance, aided by a non-cash rehabilitation adjustment and strong production.

• CapEx for 2025 in South Africa is ZAR 2.6 billion (ZAR 1.4 billion sustaining, ZAR 1.2 billion expansion), with major projects at Annea and Zibulo North Shaft nearing completion.

• Australia’s sustaining CapEx is ZAR 650 million, below guidance due to phasing.

• Net cash at year-end expected between ZAR 4.9–5.2 billion, including ZAR 1.2 billion from FX derivatives.

• Returned ZAR 2.1 billion to shareholders via dividends and buybacks in 2025, with 4.86 million shares repurchased for ZAR 468 million.