Thungela Resources has highlighted coal’s long-term role in the global energy mix, as newly appointed CEO Moses Madondo used his first results presentation to outline the company’s strategic positioning in a challenging earnings environment.
Madondo, presenting his first set of results since taking over from July Ndlovu on August 1 2025, emphasised that coal remains central to energy security and economic development in emerging markets.
“We remain confident in the long-term fundamentals of coal in the energy mix,” he said on Monday. “In developing economies, the starting point is energy security. Without reliable, affordable energy, industrialisation, job creation and economic growth simply do not happen.”
His comments come as Thungela reported weaker financial results for the year to end-December 2025, weighed down by softer export coal prices, currency headwinds and impairments.
The group swung into a headline loss for the period, a sharp reversal from the previous year, as benchmark export coal prices fell and the rand strengthened against the dollar, reducing export earnings.
Thungela’s shares fell about 14% in intraday trade before recovering by the close to end 7.53% lower at R162.
Earnings were also hit by significant non-cash impairments across its South African and Australian operations, linked to lower forward coal price assumptions and changes in market conditions.
Operationally, Thungela maintained stable production from its core South African mines, though export saleable production and realised prices came under pressure due to weaker seaborne demand and logistical constraints, particularly on the rail network to the Richards Bay Coal Terminal.
The group continued to manage costs and optimise operations, but lower realised prices and reduced export volumes weighed on overall profitability.
Madondo said coal continues to provide dependable baseload power at scale, something renewables are not yet able to deliver consistently or affordably across many emerging markets. “Coal also supports critical industries, such as steel, cement and manufacturing, which are essential for infrastructure development and economic growth.”
He said the sector remains a major socioeconomic contributor, supporting millions of jobs, sustaining local economies, and contributing to export revenue and fiscal stability.
Despite the weaker earnings performance, Madondo said Thungela’s portfolio of high-quality coal assets positions the company strongly as the thermal coal market moves into a more balanced phase. Sustained demand from emerging Asian markets and potential supply-side interventions from producers such as Indonesia give high-quality producers a structural advantage.
However, he cautioned that the market remains finely balanced and increasingly exposed to geopolitical risk. “The recent escalation of conflict in the Middle East has again increased energy security fears and pushed up prices of oil, gas and coal. The outlook is increasingly influenced by volatile geopolitical conditions and evolving market pressures.”
On whether Thungela would follow peers such as Exxaro Resources in diversifying beyond coal, Madondo signalled a cautious and opportunistic approach.
“As we reiterate, we look for opportunities where we are able to make a difference and add value and where our strengths are best positioned,” he said. “Opportunities that fall within those parameters, we will certainly consider.”
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