Thungela Resources (TGA) H2 2025 earnings summary

Executive summary

• Delivered 17.8 Mt exportable saleable production in 2025, exceeding guidance in South Africa and at the upper end at Ensham.

• Achieved a fatality-free record for the third consecutive year and completed key life extension projects (Annea Colliery, Zibulo North Shaft).

• Board declared a dividend for the ninth consecutive period, with total shareholder returns of ZAR 701 million (177% of adjusted operating free cash flow).

• Faced challenging market conditions with lower benchmark coal prices and currency headwinds, resulting in a net loss and significant non-cash impairments.

Financial highlights

• Group revenue declined 17% to ZAR 29.6 billion, mainly due to lower coal prices and a stronger rand.

• Adjusted EBITDA was ZAR 1.2 billion; headline loss of ZAR 839 million; net loss of ZAR 7.1 billion after ZAR 8.8 billion in non-cash impairments.

• Operating free cash flow was ZAR 2.4 billion; adjusted operating free cash flow ZAR 396 million after ZAR 2 billion sustaining CapEx.

• Ended year with ZAR 6.1 billion in cash and net cash of ZAR 5.1 billion.

• Total shareholder returns (dividends and buybacks) of ZAR 701 million for 2025.

Outlook and guidance

• 2026 export saleable production guidance: South Africa 13–13.6 Mt, Ensham 3.9–4.2 Mt.

• FOB cost guidance (excl. royalties): South Africa ZAR 1,320–1,370/t; Ensham ZAR 1,480–1,570/t.

• Sustaining CapEx expected at ZAR 700m–1bn (South Africa) and ZAR 500m–700m (Ensham); expansionary CapEx to drop sharply.

• Production in 2027 expected to be broadly in line with 2026.