Thungela Resources has extended its safety record to two and a half years without a fatality, a milestone that CEO July Ndlovu described as the company’s “first value” as it announced its interim results for the six months ended 30 June 2025.
The group reported export saleable production of 6.4 million tonnes (Mt) in South Africa, up 300,000 tonnes from the same period last year, supported by stronger output at Zibulo and Mafube. At its Australian operation, Ensham, production reached 1.6Mt on a 100% basis, although costs per tonne were elevated due to lower output.
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Financially, revenue fell 12% year-on-year to R14.8 billion, which is a decline in coal prices and a weaker dollar-to-rand exchange rate. Adjusted EBITDA came in at R691 million, with net profit of R248 million. Earnings per share dropped to 193 cents, compared with 952 cents a year earlier.
Despite softer pricing, Thungela maintained a strong balance sheet with R6.3 billion in net cash after R1.2 billion in capital expenditure. Adjusted operating free cash flow stood at R484 million, aided by a R690 million working capital unwind and R453 million in foreign currency management.
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Shareholders will receive an interim cash dividend of R2 per share, alongside a share buyback programme of up to R140 million. A further R31 million will be distributed to the Sisonke Employee Empowerment Scheme and Nkulo Community Partnership Trust. The board said it would retain a R5 billion buffer to manage global uncertainty and commodity volatility.
Reporting on operations, the company reaffirmed its full-year South African export production guidance of 12.8 million to 13.6 million tonnes, with costs expected to remain within R1,210 to R1,290 per tonne. Ensham is likely to deliver at the lower end of its 3.7Mt to 4.1Mt guidance, with costs near the upper range of R1,470 to R1,580 per tonne.
Strategically, Thungela advanced two life-extension projects: Elders, which has begun producing export coal, and Zibulo North Shaft, due for completion in 2026. The group said it is also preparing for the closure of its Goedehoop and Isibonelo mines, both of which are reaching the end of their life this year, while continuing to invest in the Lephalale Coal Bed Methane project.
Reflecting on his final set of results as CEO, Ndlovu said: “Safety is our first value. We are pleased to report that we have operated for two and a half years without a loss of life. We remain unconditional about ensuring that our people return home safely every day. These results demonstrate our ability to control the controllables.”
He added, “Today represents a significant milestone in my journey as Thungela’s CEO, as this is the last set of financial results that I will deliver. As we welcome Moses Madondo as the CEO designate, I am proud that together we have built a sustainable business with long-life assets across multiple geographies.”