Thungela confirmed that the Annea Colliery and Zibulo North Shaft life-extension projects have now been completed and that it is now working on ramping up production from the two operations.
Image: File photo
Tawanda Karombo
JSE listed coal miner, Thungela Resources - which on Monday declared a R2 per share final dividend for the year to December - has completed shaft life extension projects at two collieries, it said.
Thungela confirmed that the Annea Colliery and Zibulo North Shaft life-extension projects have now been completed and that it is now working on ramping up production from the two operations.
Thungela exceeded its own production guidance for 2025 to produce 17.8 million tons in export saleable coal.
It recorded adjusted operating free cash flow of R396 million for the period and had net cash of R5.1 billion as at December-end, helping the company to a final R2 dividend that translated to a total payout of R4 for the full year under review.
However, Thungela incurred a net loss of R7.1bn for the year, impacted by the non-cash impairment losses. Group generated adjusted earnings before interest, taxes, depreciation, and amortization of R1.2bn.
Thungela incurred non-cash impairment losses of R8.8bn against its assets, reflecting lower benchmark coal price forecasts, the weakening of the US dollar and the strengthening of the South African rand.
“The impairment losses are non-cash in nature and do not affect the Group’s liquidity or operational capacity.”
After the company opened a trading office in Dubai, Thungela said it was providing support to its employees there. Dubai has come under attack from Iran following bombings by Israel and the United States and sparking off a conflict that has resulted in instability and higher oil prices.
“The uncertainty brought about by the conflict has, once again, increased volatility in the energy market, impacting on the price of oil, gas and coal,” said Thungela CEO, Moses Madondo.
“The ongoing conflict in the Middle East following the recent US-Israeli actions involving Iran has raised new levels of uncertainty and has understandably caused concern, not only for the global economy but for peace, safety and security in the region.”
The company’s saleable production of 17.8 million tons for the period reflected Thungela’s “strong performance at Mafube and the ramp-up at the Annea Colliery previously known as the Elders project.
In Australia, said Madondo, the company had to overcome “challenging geological conditions” in the first half of the year to deliver export saleable production of 4.0 million tons, which was at the upper-end of the guidance range of 3.7 to 4.1 million tons.
He said the company had made meaningful progress in reshaping its business, enhancing operational flexibility and embedding resilience through the commodity cycle.
“Together with the advancement of the Lephalale Coal Bed Methane (LCBM) project and the disposal of assets, aimed at optimising our portfolio and further strengthening the balance sheet, this underscores our ability to execute on our strategic priorities,” he said.
During the period, Transnet Freight Rail (TFR) rail performance improved to 56.8Mt, compared to 51.9Mt in 2024.
Madondo said the coal industry had noted and recognized the “tangible improvements achieved to date, through collaborative efforts between Transnet, the National Logistics Crisis Committee” and the coal industry.
He added that strengthening the coal logistics system benefits the broader industry, supporting both established producers and emerging participants, while reinforcing South Africa’s position in global coal markets.
BUSINESS REPORT