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The latest update is out from Thungela Resources Limited ( (GB:TGA) ).
Thungela Resources reported 2025 annual results marked by strong operational performance but weaker financial outcomes amid softer coal prices and currency headwinds. Export saleable production rose to 17.8Mt, above guidance, while both South African and Ensham operations delivered costs below guidance, reflecting productivity gains and disciplined cost control.
Despite these operational gains, revenue fell 17% to R29.6 billion and the group swung to a net loss of R7.1 billion, largely driven by R8.8 billion in non-cash impairment charges linked to lower coal price forecasts and currency movements. The company remained cash generative, producing R2.4 billion in operating cash flow, R396 million in adjusted operating free cash flow, and ending the year with R5.1 billion in net cash.
Thungela declared a final ordinary cash dividend of R2 per share, taking the full-year payout to R4 per share, underscoring its commitment to shareholder returns despite reduced earnings and a 69% cut in the annual dividend versus 2024. Life-extension projects at Annea Colliery and Zibulo North Shaft were completed on time and within budget, supporting long-term volume resilience as older mines such as Goedehoop North and Isibonelo reach the end of their economic lives.
Management highlighted a third consecutive fatality-free year and ongoing ESG progress, including zero major environmental incidents and continued investment in education and supplier development in host communities. Improved rail performance from Transnet Freight Rail and collaboration within South Africa’s coal logistics network were cited as supportive for export competitiveness, even as geopolitical tensions and energy market volatility add uncertainty for coal demand and pricing.
More about Thungela Resources Limited
Thungela Resources Limited is a South African-based thermal coal producer with listings in Johannesburg and London. The group operates mines in South Africa and the Ensham operation in Australia, supplying export and domestic coal markets while pursuing portfolio optimisation and life-extension projects to sustain production across commodity cycles.
Average Trading Volume: 344,129
Technical Sentiment Signal: Buy
Current Market Cap: £1.08B
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