Half Year 2026 Thungela Resources Ltd Earnings Call Transcript
Key Points
- Adjusted EBITDA increased 91% to ZAR1.3 billion, driven by higher benchmark coal prices, increased sales volumes, and lower operating costs.
- Earnings per share surged 467% to ZAR10.95, with net profit rising to ZAR1.4 billion.
- Strong cash generation led to net cash of ZAR6.1 billion, and the Board declared a 10th consecutive interim dividend of ZAR5.50 per share.
- Group export saleable production rose 6% to 8.5 million tonnes, with Ensham in Australia delivering a 37% production increase and a 23% improvement in FOB cost per tonne.
- Improved rail performance in South Africa, with an annualized run rate of 59.9 million tonnes, enabled higher export sales and third-party coal sales to capture value.
- Safety performance improved, with a fatality-free record for 3.5 years and a reduced total recordable case frequency rate to 2.62.
- A strong South African rand (average ZAR16.41/USD) reduced reported revenue by approximately ZAR1.7 billion, limiting the benefit of higher coal prices.
- South African FOB costs increased to ZAR1,374 per tonne from ZAR1,264, driven by inflation, lower production volumes, and higher selling costs.
- Realized price discounts widened in both South Africa (15.7%) and Australia (13.3%), with Ensham's fixed-price contracts concluded before the price rally.
- Zibulo's production was lower due to underground infrastructure challenges, though expected to be transient as operations shift to the North Shaft.
- Market outlook remains cautious due to increased domestic supply in China and India, and the forward curve does not yet reflect potential price support from geopolitical tensions.
- The effective tax rate increased due to accounting treatments related to deferred tax assets in South Africa and Australia.
Good day everyone, and welcome to Thungela's 2026 interim results presentation. I'm Hugo Nunes, Head of Investor Relations, and I'd like to take a couple of minutes to introduce today's agenda and to explain how the day will run.
Joining us on the call today is Moses Madondo, our Chief Executive Officer; and Deon Smith, our Chief Financial Officer. Moses will begin with an overview of the group's performance for the first half of 2026 and provide an update on market conditions and key industry drivers. Deon will then take you through the financial results for the period. Moses will conclude the presentation before we open the line for questions.
(Event Instructions) Over to you, Moses.
Thank you, Hugo. Good afternoon and good morning to those joining us on the call today. June 2026 marked five years of Thungela's existence as a standalone-listed entity. In these five years, we have created and returned
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