Thungela declares dividend as production beats guidance despite R7.1bn loss amid volatility

JSE listed coal miner, Thungela Resources - which on Monday declared a R2 per share final dividend for the year to December - has completed shaft life extension projects at two collieries, it said.

- TAWANDA KAROMBO

Thungela confirmed that the Annea Colliery and Zibulo North Shaft life-extension projects have now been completed and that it is now working on ramping up production from the two operations.

Thungela exceeded its own production guidance for 2025 to produce 17.8 million tons in export saleable coal.

It recorded adjusted operating free cash flow of R396 million for the period and had net cash of R5.1 billion as at December-end, helping the company to a final R2 dividend that translated to a total payout of R4 for the full year under review.

However, Thungela incurred a net loss of R7.1bn for the year, impacted by the non-cash impairment losses. Group generated adjusted earnings before interest, taxes, depreciation, and amortization of R1.2bn.

Thungela incurred non-cash impairment losses of R8.8bn against its assets, reflecting lower benchmark coal price forecasts, the weakening of the US dollar and the strengthening of the South African rand.