KEY POINTS
- Thungela kept its 2026 production target after a stronger first-half performance.
- Revenue rose to R15.2bn, while net cash reached R6.1bn.
- Improved rail performance and stronger Ensham output supported coal exports.
Thungela Resources has maintained its full-year coal production guidance after recording a stronger-than-expected performance in the first half of 2026, despite challenging market conditions and a stronger South African rand.
The thermal coal producer and exporter reported group revenue of R15.2-billion for the six months ended June 30, 2026. The increase was supported by benchmark coal prices that were 15% higher in South Africa and 25% higher in Australia compared with the corresponding period.
Adjusted EBITDA stood at R1.3-billion, while profit for the period reached R1.4-billion. This included a R1-billion noncash gain arising from the disposal of the Kleinkopje mining right.
Thungela’s earnings per share jumped 467% to R10.95, highlighting the significant improvement in its financial performance.
Operating cash flow amounted to R2.6-billion. After spending R705-million on sustaining capital, the company generated adjusted operating free cash flow of R1.9-billion. The company ended June with a strong net cash position of R6.1-billion.
Despite market volatility, Thungela retained its full-year production targets, with management expecting improved operating performance during the second half.
South African export saleable production remains forecast at between 13-million and 13.6-million tonnes, while Australian subsidiary Ensham is expected to produce between 3.9-million and 4.2-million tonnes for export.
CEO Moses Madondo said the company’s strategy remains centred on strengthening resilience, maximising existing assets and pursuing carefully selected growth opportunities.
The company is also continuing to manage its asset portfolio to improve earnings and create long-term value for shareholders.
South African operations improve
Thungela’s South African operations produced 6.3-million tonnes of export saleable coal during the first half, with a free-on-board cost, including royalties, of R1 374/t.
Performance at Khwezela improved significantly, particularly because of better water management, while Mafube continued to make a strong contribution.
The company sold 7.4-million tonnes during the period, including 600 000 tonnes from third-party sources. Sales exceeded its own production, helped by improved rail performance and additional opportunities to secure rail capacity along the export corridor.
Transnet Freight Rail’s annualised performance improved to 59.9-million tonnes, compared with 56.8-million tonnes in 2025.
The average realised export price through Richards Bay Coal Terminal was $89.18/t, representing a 15.7% discount to the benchmark price.
Thungela’s Australian operation, Ensham, also recorded substantial production growth.
Export saleable production increased to 2.2-million tonnes from 1.6-million tonnes in the comparable period.
Its free-on-board cost, including royalties, fell to R1 466/t, below the company’s guidance range.
Ensham achieved an average realised export price of $110.92/t, although this was 13.3% below the benchmark. Management expects the discount to narrow during the second half as the impact of previously contracted fixed-price coal volumes diminishes.
