Thungela full-year revenue up 93%, boosted by strong coal prices

Thungela Resources has reported a significant increase in revenue, with a 93% boost in their full-year results, largely driven by strong coal prices. July Ndlovu, the Chief Executive Officer of Thungela Resources, expressed satisfaction with the company's performance despite facing challenges with Transnet, a state-owned freight transport and logistics company in South Africa. Ndlovu highlighted the company's commitment to controlling the controllables and running a fatality-free business to achieve their operational potential. Ndlovu pointed out that the company's coal production of 13.1 million tons for the year fell short of their target by 3 million tons due to Transnet challenges. This shortfall impacted their cost management, leading to higher costs. However, Ndlovu emphasized that increased royalties, resulting from strong coal prices, have led to a positive contribution to the South African fiscus. Thungela Resources has also made significant contributions to community development through partnerships such as the Nkulo Community Partnership Trust and the Sisonke Employee Trust. Ndlovu reiterated the company's commitment to creating shared value and leaving a lasting impact on the communities in which they operate. Looking ahead to 2023, Ndlovu expressed confidence in sustaining their performance. The company has set guidance based on Transnet's past performance and their current stockpiles. While Thungela Resources remains dependent on Transnet for coal transport, Ndlovu remains hopeful that the ongoing work with Transnet will lead to improvements in the medium term. Ndlovu addressed concerns about alternative transportation methods, stating that road transport is not a viable option due to its high costs. The company is focused on maximizing production through rail transport, which is the most efficient and cost-effective method for the coal industry. In terms of expansion, Thungela Resources is looking to optimize their existing portfolio. Plans include investments in existing mines such as Elders, studying the Zibullo North extension to extend the life of their flagship mine, and exploring a gas project in the Lepalale region. Overall, Thungela Resources remains optimistic about their future prospects and is committed to delivering value to shareholders while making a positive impact on the South African economy and communities.