Thungela Resources Stock Earnings Reports

Thungela reported H1 2025 results in a weaker price environment but with a strong balance sheet and unchanged full‑year guidance. Key financials: adjusted EBITDA ZAR 691m (margin ~5%), earnings per share ZAR 1.93, adjusted operating free cash flow ZAR 484m, capital spend ZAR 1.2bn (sustaining ZAR 703m; expansion ZAR 511m), and net cash ZAR 6.3bn at 30 June 2025. The Board approved total shareholder returns of ZAR 3.00 per share (ZAR 2.00 interim cash dividend plus up to ZAR 1.00 in buybacks) and applied an 87% distribution of adjusted operating free cash flow for this payout; the group retains a ZAR 5bn cash buffer and ~ZAR 800m reserved for key projects. Operationally, group export saleable production was ~8.0Mt (6.4Mt South Africa; 1.6Mt Ensham) — South Africa production benefited from productivity gains despite heavy rains, while Ensham was impacted by challenging geology that produced higher‑ash stockpiles to be crushed/sold in H2. The company completed the acquisition of the remaining 15% of Ensham, continues ramping Elders and Zibulo North (on schedule/on budget), and is investing in strategic projects (gas demo, life‑extension work). Market context: Richards Bay and Newcastle benchmark prices were down c.9% and c.22% y/y respectively; management expects seaborne demand to remain supported by energy security dynamics but notes sticky elevated import hub stocks. Management reiterated guidance for production and costs, expects a stronger second half (Ensham volumes to normalize as stockpiles are crushed), flagged a one‑off restructuring charge of ZAR 285m related to Goedehoop/Isibonelo closures, and highlighted FX hedges that are expected to deliver material cash tailwinds into H2 2025 and into 2026.