This article first appeared on GuruFocus .
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Export Saleable Production:17.8 million tons, exceeding guidance range.
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Export Equity Sales:17.8 million tons, up from 16.6 million tons in 2024.
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Loss Per Share:ZAR54.64, impacted by lower coal prices and exchange rate volatility.
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Non-Cash Impairment Loss:ZAR8.8 billion due to lower benchmark coal price assumptions.
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Adjusted Operating Free Cash Flow:ZAR396 million for the year.
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Final Dividend:ZAR2 per share, totaling ZAR281 million.
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Total Shareholder Returns:ZAR701 million, representing 177% of adjusted operating free cash flow.
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Adjusted EBITDA:ZAR1.2 billion, reflecting lower coal prices and stronger rand.
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Net Loss:ZAR7.1 billion, driven by impairment losses.
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Operating Free Cash Flows:ZAR2.4 billion generated.
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Net Cash Position:ZAR5.1 billion at year-end.
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Group Revenue:Declined by 17% to ZAR29.6 billion.
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FOB Costs South Africa:ZAR1,170 per ton, excluding royalties.
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FOB Costs Australia:ZAR1,435 per ton, excluding royalties.
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Sustaining CapEx:ZAR2 billion for the group.
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Expansionary CapEx:ZAR1.1 billion, primarily for Zibulo North Shaft project.
Release Date: March 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Thungela Resources Ltd ( TNGRF ) achieved a fatality-free business for three consecutive years, emphasizing their commitment to safety.
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The company completed two key life extension projects, Annea Colliery and Zibulo North Shaft, enhancing the longevity of their operations.
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Thungela Resources Ltd ( TNGRF ) declared a dividend for the ninth consecutive period, highlighting their focus on delivering returns to shareholders.
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The company recorded 17.8 million tons of export saleable production, exceeding guidance in South Africa and reaching the upper end of the range at Ensham.
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Thungela Resources Ltd ( TNGRF ) achieved zero reportable environmental incidents in 2025, marking a significant milestone since their listing in 2021.
Negative Points
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The company incurred a loss per share of ZAR54.64 in 2025, reflecting lower coal prices and exchange rate volatility.
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Thungela Resources Ltd ( TNGRF ) reported a non-cash impairment loss of ZAR8.8 billion due to lower benchmark coal price assumptions and exchange rate forecasts.
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The gross total recordable case frequency rate increased to 2.83, indicating challenges in maintaining safety performance.
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The financial results were impacted by lower thermal coal prices in South Africa and Australia, with benchmark prices significantly lower year-on-year.
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The Group generated a negative adjusted operating free cash flow of ZAR88 million in the second half of the year, affecting their financial performance.
Q & A Highlights
Q: Can you provide more details on Thungela's diversification options and the interaction with the Board regarding future growth strategies? A: Moses Madondo, CEO, explained that Thungela is focused on growth by leveraging its strengths and taking opportunities where immediate value can be realized. The company has a strong balance sheet to support growth, and the Board is supportive of this strategy. There are no specific assets targeted yet, but the focus is on value-driven opportunities.
Q: What is the current hedge position, and how does it impact cash flow? A: Gideon Smith, CFO, stated that the ZAR2.3 billion gain from hedges includes ZAR1.3 billion in cash realized. The remaining hedges will unwind in 2026, with about $580 million in forward sales at an average rate of ZAR1,813 to a dollar. Approximately $170 million has already been converted at ZAR1,840.
Q: What trends has the marketing team observed in the coal market recently, particularly regarding energy and sponge iron customers? A: Bernard Dalton, Executive Head of Marketing, noted an increase in coal prices due to geopolitical tensions in the Middle East. Sponge iron demand has been strong, especially in India, and energy security concerns have led to increased demand across various regions, including Southeast Asia and parts of Africa.
Q: With the depreciation of the ZAR and rising coal prices, is there a possibility of reversing the ZAR8.8 billion impairments in 2026? A: Gideon Smith, CFO, mentioned that while the impairment review occurs every six months, reversing an impairment requires high conviction of a structural change in price and exchange rates. It is unlikely that the impairment will be reversed, as it was a non-cash charge.
Q: What is the optimal TFR rail performance volume for Thungela, and what improvements are expected in 2026? A: Moses Madondo, CEO, stated that the Richards Bay coal terminal plans to receive up to 60 million tons in 2026, and Thungela is comfortable with railing its allocation to meet this target.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
