Thungela's Coal-Driven Profit Surge
Thungela Resources' Half-Year Profit Jumps Sixfold as Coal Prices Fuel Strong Earnings
Key Points
Regional production showed a split by region, with South Africa's export saleable production down 1.6% to 6.3 million tonnes and Australia up 38% to 2.2 million tonnes, taking total export saleable production to 8.5 million tonnes, up 5.8%.
Two life-extension projects, Annea Colliery and Zibulo North Shaft, were completed on time and within budget and are ramping up production.
Interim dividend was set at 5.50 rand per share and funded directly from retained earnings, based on an issued share capital of 140,492,585 ordinary shares.
Earnings per share metrics showed strong improvement, with EPS including disposal proceeds at 10.95 rand and headline EPS at 4.80 rand.
Market reaction to the results included the stock moving higher, with Johannesburg-listed shares up about 8.4% and London-listed shares up about 9.5% on the news.
Thungela Resources more than doubled its first-half pretax profit to 2.29 billion Rand, up from just 384 million Rand a year earlier — a 467% surge driven by rising coal prices and stronger export volumes, according to Investing.com. The South African coal miner also lifted its interim dividend from 2.00 Rand to 5.50 Rand per share, rewarding shareholders from a stronger cash position.
Investors welcomed the news. Shares listed in Johannesburg jumped about 8.4%, while London-listed shares climbed roughly 9.5%, according to Proactive Investors.
Coal Prices and Middle East Tensions Fuel the Profit Surge
Thungela's revenue rose 2% to 15.17 billion Rand for the six months ending June 30, 2026. Adjusted EBITDA — a measure of core operating earnings — jumped roughly 88% to 1.3 billion Rand. Higher export prices were the main driver, according to MarketScreener.
Richards Bay coal terminal prices reached 89.18 USD per tonne. Australian export prices also edged higher. Middle East tensions boosted global energy demand, pushing coal prices up across key markets, according to MarketScreener.
Production Grows as Australia Offsets South African Dip
Total export saleable production rose 5.8% to 8.5 million tonnes. South Africa's output dipped 1.6% to 6.3 million tonnes. Australia picked up the slack, with output surging 38% to 2.2 million tonnes, according to Proactive Investors.
Two key expansion projects helped drive the growth. The Annea Colliery and Zibulo North Shaft life-extension projects both finished on time and within budget. Both are now ramping up production, adding future output capacity for the company.
Asset Sale Adds Over a Billion Rand to the Bottom Line
A one-off gain also boosted Thungela's headline numbers. The company sold its Kleinkopje mining right, booking a disposal gain of 1.04 billion Rand. That gain helped push earnings per share — including disposal proceeds — to 10.95 Rand, according to MarketScreener.
Headline EPS, which strips out one-off items like asset sales, came in at 4.80 Rand. That figure still showed a sharp improvement from the prior year, reflecting the underlying strength in coal markets and Thungela's operating performance.
Dividend Hike Signals Management Confidence in Cash Flow
Thungela set its interim dividend at 5.50 Rand per share — more than double the 2.00 Rand paid a year ago. The payout is funded directly from retained earnings, based on 140,492,585 ordinary shares in issue, according to Investing.com.
The move signals that management feels confident about the company's cash position. Stronger export realizations, higher volumes, and the Kleinkopje disposal all contributed to a cash generation performance that supported the higher payout, Proactive Investors reported.
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