In This Article:
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Net Profit: ZAR3.5 billion, with Ensham contributing ZAR676 million or 19%.
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Capital Expenditure: Total of ZAR3.4 billion, with ZAR1.7 billion on sustaining capital and ZAR1.7 billion on life extension projects.
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Cash Buffer: ZAR5.4 billion maintained as a cash buffer.
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Dividend: Final ordinary cash dividend of ZAR11 per share, totaling ZAR1.5 billion.
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Share Buyback: Up to ZAR300 million.
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Adjusted EBITDA: ZAR6.3 billion for the full year.
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Earnings Per Share: ZAR2,676 million.
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Operating Free Cash Flow: ZAR3.6 billion for the full year.
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Net Cash Position: ZAR8.7 billion at year-end.
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Export Saleable Production: 17.7 million tons, exceeding market guidance.
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Revenue: Increased by around ZAR5 billion year-on-year.
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FOB Cost per Ton (South Africa): ZAR1,130 per ton, excluding royalties.
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Production Guidance (2025): South Africa: 12.8-13.6 million tons; Ensham: 3.7-4.1 million tons.
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FOB Cost per Export Ton (2025): South Africa: ZAR1,220-ZAR1,300 per ton; Ensham: ZAR1,650-ZAR1,780 per ton.
Release Date: March 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Thungela Resources Ltd (TNGRF) reported a net profit of ZAR3.5 billion for 2024, with significant contributions from its Ensham operations in Australia.
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The company achieved a fatality-free record for over two years and improved its total recordable case frequency rate to 1.93.
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Thungela exceeded its market guidance with 17.7 million tons of export salable production, demonstrating strong operational performance.
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The company declared a final ordinary cash dividend of ZAR11 per share and announced a share buyback of up to ZAR300 million, returning excess cash to shareholders.
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Thungela's strategic projects, including the Elders and Zibulo North Shaft life extension projects, remain on schedule and within budget, supporting future growth.
Negative Points
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The company faced a softer price environment, with realized coal prices down 12% in South Africa and 20% in Australia, impacting financial results.
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Ensham's production improvements were offset by lower demand in Asian markets, leading to a significant discount to benchmark prices.
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Thungela's sustaining capital expenditure increased to ZAR3.4 billion in 2024, with further investments planned for 2025, potentially impacting cash flow.
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The geopolitical tensions and mild winter in the Northern Hemisphere led to high coal inventories, putting pressure on coal prices.
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The company's operations in Australia face challenges with fault zones, impacting productivity and requiring additional management focus.