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Thungela Resources’ first-half earnings more than doubled after the group increased coal production and as exports rose.
The improvement came as Transnet Freight Rail’s performance helped the company lift South African exports, while higher production at its Australian operation supported cash generation.
Due to the upbeat results, Thungela’s share price gained the most in more than five months, just over 10% to R107.45.
Group revenue for the six months to end-June rose 2% to R15.2bn, while adjusted earnings before interest, tax, depreciation and amortisation (ebitda) jumped 91% to R1.3bn, it said on Monday.
Cash generated from operating activities amounted to R2.6bn, and after R705m in capital expenditure to maintain its operations, adjusted operating free cash flow was R1.9bn from R484m a year ago.
Thungela ended June with net cash of R6.1bn.
HEPS rose 150% to 480c and the company declared an interim dividend of R5.50 per share compared with R2 a year ago.
Thungela has returned more than R23bn to shareholders through dividends and share buybacks during its first five years as a listed company. Its latest interim dividend is its 10th consecutive distribution since its June 2021 listing.
It reported a profit of R1.4bn, which included a R1bn noncash gain from the disposal of the Kleinkopje mining right.
The thermal coal producer reported group export saleable production of 8.5-million tonnes for the first half, up 6% from a year earlier.
South African production rose to 6.3-million tonnes, with Thungela attributing the improvement to better performance at Khwezela, eMalahleni, including improved water management, and continued production from Mafube, near Middelburg.
Thungela exported 7.4-million tonnes from its South African operations, with the company citing improved rail performance and additional allocations along the export corridor.
Transnet Freight Rail’s annualised run rate increased to 59.9-million tonnes from 56.8-million tonnes in 2025.
The improvement comes after years of declining coal rail volumes, which have constrained exports from South Africa’s mines and forced producers to find alternative ways of moving coal to ports.
Despite the higher export volumes, Thungela’s average realised price through Richards Bay Coal Terminal was $89.18 a tonne, a 15.7% discount to the benchmark price.
At Ensham, Australia, export saleable production increased to 2.2-million tonnes from 1.6-million tonnes, while costs fell during the period.
Thungela said its Annea Colliery near eMalahleni and Zibulo North Shaft in the Witbank-Ogies coalfields were completed during the period and are continuing to ramp up.
The company said it would continue to assess growth opportunities alongside investment in its existing operations.
It also maintained its view that thermal coal prices could receive support from tighter gas markets and energy security concerns.
Thungela said the expected global gas supply surplus had been delayed and the pace of the energy transition had been slower than previously expected. It expects coal markets to remain volatile, with higher energy costs, inflation and weak industrial demand posing downside risks.
The company is continuing to assess the commercial viability of its Lephalale coal bed methane project in Limpopo and is working on regulatory approvals.
Update: August 17 2026
This article now has the closing share price.
Business Day
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