Press releases

Thungela has signed a Memorandum of Agreement (MOA) with University of Pretoria’s (UP) Educational Psychology Department. As part of this collaboration, the Department of Educational Psychology at the university will deploy master's students to various schools to offer essential psychosocial support to both educators and learners in the foundation and intermediate phases.

Thungela launched the education initiative in 2024, a five-year program that aims to improve the quality of education for Grade R to Grade Four learners in 45, no-fee schools in Nkangala and Gert Sibande districts, and aims to improve school readiness, literacy and numeracy outcomes for learners. 

Mpumi Sithole, Executive head of corporate affairs at Thungela said, “We recognise that educational performance is not only shaped by access to resources but also through the psychological and emotional well-being of both learners and educators. Working with the University of Pretoria, we are equipping schools with the professional support needed to respond to the complex realities facing learners and educators. 

“This MoA is an important step in Thungela’s journey to strengthen the impact of the Thungela Education Initiative, and we are proud to contribute to a model that will provide the much-needed psychosocial support to the learners and teachers, while empowering the master’s students at the same time.” 

The mutually beneficial partnership will offer the master’s students hands-on experience as they conduct learner assessments and identifying the necessary remedial actions and interventions, under the supervision of the district educational psychologists. This will help reduce the workload of the district's educational psychologists, while the master’s student gain valuable practical work experience to help them complete the practical components of their academic training. 

Through this agreement the University of Pretoria is supporting the implementation of the Department of Basic Education’s screening, identification, assessment and support (SIAS) policy. Professor Mampane from the University of Pretoria, said, “This community engagement partnership with Thungela exemplifies a strategic alliance that amplifies our capacity to make a meaningful difference beyond academic boundaries. By bridging the gap between theory and practice, this collaboration not only empowers our students with invaluable real-world experience but also addresses critical community needs, particularly in Mpumalanga.” 

“It further fosters a ripple effect of positive change, enhancing emotional resilience, academic achievement, and life skills among young learners. This model underscores the transformative potential of synergy among academia, government, and the private sector. Together, we are laying a robust foundation for sustainable development and social upliftment, reinforcing South Africa’s path toward a more equitable and prosperous future,” said Professor Mampane. 

Thungela will fund and manage the program, overseeing its implementation with a dedicated project structure. To uphold governance and accountability, a management committee has been set-up. The committee will ensure consistent engagement with stakeholders across various levels of the Mpumalanga Department of Education, emphasizing ethical principles throughout the partnership. 

Thungela’s purpose, which is to responsibly create value together for a shared future is the cornerstone of this partnership, as we continue investing in building resilient communities through meaningful and impactful interventions.

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Thungela Resources Limited (“Thungela” or “the Group”) today, announced its interim results for the six months ended 30 June 2025. The results reflect the strength of our balance sheet, disciplined capital allocation and our ability to execute on our strategic priorities, despite softer coal prices and a challenging global environment.

• Safety: Operating a fatality-free business for two and a half years
• Production: Export saleable production in South Africa increased year-on-year to 6.4Mt and Ensham achieved production of 1.6Mt (on a 100% basis)
• Financial: Adjusted operating free cash flow* of R484 million for the period and net cash* of R6.3 billion at 30 June 2025, after capital expenditure of R1.2 billion
• Shareholder returns: Declaration of an ordinary interim cash dividend of R2 per share and a share buyback of up to R140 million
• Guidance: The Group remains on track to achieve full year guidance 

Commenting on the results, Thungela CEO, July 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.” 

“The global operating environment was characterised by increasing geopolitical uncertainties and tariff escalations, disrupting global supply chains and resulting in weaker coal demand. These results demonstrate our ability to control the controllables.”

Operational performance
In South Africa, export saleable production increased by 300kt year-on-year to 6.4Mt, driven by productivity improvements at Zibulo and Mafube, while Khwezela was affected by abnormally high rainfall. FOB cost per export tonne excluding royalties was R1,258, in line with guidance. At Ensham, we recorded 1.6Mt of saleable production and stockpiled a further 280kt run of mine coal, which did not report into saleable production in the first half. FOB cost per export tonne excluding royalties of R1,694 per tonne is above the higher end of the guidance range as a result of the lower production denominator, which we expect to normalise in the second half of the year. 

Advancing on our strategic objectives
The Group’s strategic projects remain imperative to the business, with Elders beginning to produce export saleable production as we continue to ramp up. The Zibulo North Shaft project is making good progress and is scheduled to be completed in 2026, within budget. These two life extension projects are key to the long-term sustainability of the business in South Africa, as the Goedehoop mine approaches its end of life in 2025. At Isibonelo, the coal supply agreement is reaching its end of contract term, and the mine will thus come to the end of its life in 2025. We are evaluating opportunities to close these operations in a sustainable and responsible manner. We continue to invest in the Lephalale Coal Bed Methane project as we seek to demonstrate the value in use of the gas.

Financial performance
Our financial results reflect the continued pressure on coal prices, with the average realised export prices in South Africa and Australia declining by 11% and 10% respectively. The softer coal prices, combined with a weaker US dollar to South African rand exchange rate, have led to a decrease in Group revenue in the first half of the year. Group revenue decreased by 12% year-on-year to R14.8 billion, realising an adjusted EBITDA* of R691 million and net profit of R248 million. Earnings per share were 193 cents (H1 2024: 952 cents) and headline earnings per share were 192 cents (H1 2024: 952 cents). 

The Group generated adjusted operating free cash flow was R484 million for the first half of the year, which was positively impacted by a working capital unwind of R690 million and R453 million from managing foreign currency risk. Net cash at 30 June 2025 was R6.3 billion after capital expenditure of R1.2 billion. 

Shareholder returns 
Our robust balance sheet enables us to continue to fund our investments through the cycle and continue to prioritise shareholder returns. The Board has approved total returns to shareholders of an interim ordinary cash dividend of R2 per share and a share buyback of up to R140 million. The total returns to shareholders are aligned to shareholder returns in the first half of 2024, despite a more challenging environment. 

The Sisonke Employee Empowerment Scheme and the Nkulo Community Partnership Trust will also receive a further R31 million collectively. 

The board believes the buffer of R5 billion is appropriate given the current uncertainty globally, including commodity price and foreign exchange rate volatility. 

Operational guidance 
In South Africa, our full year guidance for export saleable production of 12.8Mt to 13.6Mt remains appropriate as production is seasonally weighted towards the second half of the year. Guidance for FOB cost per export tonne excluding royalties* of R1,210 to R1,290 also remains appropriate. 

We expect production at Ensham to improve in the second half of the year, however, given the geological conditions experienced, production is likely to be closer to the lower end of the guidance range of 3.7Mt to 4.1Mt. Consequently, FOB cost per export tonne excluding royalties* will be at the upper end of the full-year guidance range of R1,470 to R1,580. 

In conclusion 

“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. I am deeply grateful to the Thungela board, group executive committee, employees, shareholders and stakeholders for your steadfast support.” 

“As we welcome Moses Madondo as the CEO designate, I am confident that he will be afforded the same support that you have shown me over the years. I am proud that together, we have built a sustainable business with long-life assets across multiple geographies,” said Ndlovu. 

ENDS

Thungela’s Zibulo Colliery has refurbished eight high-mast lights in Lebohang, Leandra. The decision to undertake this project stemmed from discussions with the Govan Mbeki Municipality, during which the issue of non-operational high-mast lights emerged as a significant safety challenge within the communities. Residents highlighted prolonged darkness in specific areas due to vandalism and equipment malfunctions as a major security concern.
 

Zibulo Colliery heeded the call and upgraded the infrastructure, implementing energy-efficient LED lights and enhancing hoisting systems for improved functionality. These enhancements not only facilitate safer and easier maintenance but also include security measures to safeguard the newly installed lights. This project forms part of Zibulo Colliery’s Social and Labour Plan (SLP).
 

Matome Moremi, general manager at Zibulo Colliery said: “This initiative reflects our commitment to community safety and improving essential services in communities surrounding our operations. Safety is our number one value as a business, and this extends beyond our mining operations into communities where we operate. Public areas’ lighting infrastructure is a basic but vital part of a community, and we are pleased to support the residents of Lebohang in improving their safety through restoring the high-mast lights.”

The Govan Mbeki Local Municipality welcomed the projects and its impact on service delivery. “This is a meaningful upgrade for the people of Lebohang,” said Councillor Nhlakanipo Zuma, Executive Mayor of the Govan Mbeki Local Municipality. “We always welcome this kind of investment, which strengthens infrastructure and improves and safeguards the lives of our residents.”
 

This SLP project not only restored lighting but also provided short-term employment opportunities for seven host community members, hired by local electrical contractor, promoting inclusion and contributing to the development of local skills. This aligns to Thungela’s broader focus to improve the quality of community services where we operate.

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Mafube Coal, our joint venture with Exxaro hosted a graduation ceremony in honour of 39 beneficiaries of a skills development programme that forms part of a livelihood restoration programme for resettled communities in Middelburg, Mpumalanga. With a significant investment of R5.2 million, the program's goal is to support community members in rebuilding their livelihoods.
 

Sherperd Nkadimeng, general manager at Mafube Coal said: “This programme is designed to help community members gain practical skills as a foundation for earning a sustainable livelihood. As part of the initiative, community members received business development skills and level 4 accredited qualification in freight logistics, backed by exposure to real business environments; setting them up for both employment and self-employment.”
 

“The logistics programme gave me more than just a certificate; it gave me confidence and professional direction,” said Portia Mbuyane. “Being exposed to real companies during the training helped me see where I can fit in, in the job market.”
 

The programme also provided beneficiaries with skills for setting up small businesses, equipping them with tools to ensure they succeed. They were introduced to budgeting, business planning, financial literacy and income-generation strategies. A few of the beneficiaries have since started their own businesses and are now able to provide for their families. These include:

• Tsepo Jele set up a rapidly growing ice supply business, while Audrey Mtsweni and Amanda Sikudo co-founded a laundromat, secured contracts with local clients, and have since expanded into cleaning services.
• Friddy Mahlangu used her beadwork skills to start a small business that is gaining traction beyond the village, and Sinenhlanhla Mngomezulu saw potential in her cultural heritage and began renting out traditional woven grass mats for ceremonies.
• Matshidiso Motsapi opened an internet café in the village to provide essential services such as printing, photocopying and internet access. Matshidiso said: “The training opened my eyes to possibilities I didn’t think were available to someone like me. For the first time, I have a plan to start my own business and the knowledge to make it real.”

“Industries like freight forwarding are growing, and with the right skills, people from mining communities can take advantage of opportunities beyond the mine,” Sherperd Nkadimeng said. “This kind of training is about opening doors and giving people the tools to grow on their own terms. This is how we deliver on our purpose to responsibly create value together for shared future, for our communities.”

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Thuthukani, Thungela’s Enterprise and Supplier Development (ESD) programme, hosted a graduation ceremony for sixty-one (61) local entrepreneurs from communities surrounding its operations. This marks the third cohort of entrepreneurs to successfully complete the programme since its launch in 2022.
 

Thuthukani is designed to build resilient businesses by offering tailored business skills training, technical enablement, and one-on-one mentorship to entrepreneurs from host communities. The programme is grounded in a detailed gap analysis and enables support in areas such as finance management, marketing, sales, project strategy, leadership, ISO certification, and personal development. The programme is delivered in partnership with business development service provider Raizcorp.
 

Of the 61 entrepreneurs graduating this year, 29 are supplier development beneficiaries – Small Micro and Medium Enterprises (SMMEs) that currently provide goods or services to Thungela, while 32 are enterprise development beneficiaries, comprising SMMEs that are not vendors but have potential for future integration into the mining value chain or in other industries. Notably, 50 of the 61 graduates also achieved technical enablement accreditations including ISO 9001, ISO14001 and ISO 45001 certifications, specialised geological modelling, deep cleaning and hygiene, while other businesses became members of the Federated Hospitality Association of Southern Africa and The Institute of Waste Management South Africa, boosting their compliance and competitiveness for procurement opportunities.
 

“Thuthukani is more than a business development initiative. It is a catalyst for local economic resilience. Each graduate represents a point of impact that causes a ripple effect, creating jobs and opportunities that uplift families and communities. We are proud to support the growth of these entrepreneurs and help them realise their potential - as they contribute to the growth of local economies, says Mpumi Sithole, executive head, corporate affairs at Thungela.”
 

The graduation highlights Thungela’s commitment to inclusive socio-economic development and transforming small businesses in in host communities. As the programme grows, its impact continues to spread, with entrepreneurs not only formalising their businesses, but also entering new markets, gaining critical certifications, and becoming active contributors to the regional economy.
 

Among the graduates is a growing group of women-led businesses gaining real traction in their industries. Julliet Mahlangu, owner of Mpangela Industrial Holdings and a beneficiary of the programme says, “Before Thuthukani, I lacked the systems and structure to manage and scale my business. The mentorship and technical training helped me implement better financial controls, and I now feel more confident approaching new clients and bidding for contracts.”

“Watching this third cohort grow in confidence, capability, and market reach is a clear sign of the value this partnership delivers. Thuthukani’s focus on both enterprise and supplier development ensures that more entrepreneurs in Mpumalanga are equipped for long-term success, says Jeanne Renou, Strategic Relations & Projects Manager at Raizcorp.
 

Beneficiary, Giji John Motau, owner of Gemad Pty Ltd, says, “my journey with Thuthukani has been transformative. I’ve gained a clearer understanding of what it takes to build a sustainable business”.
 

Thuthukani reflects Thungela’s ongoing commitment to economic transformation and community empowerment.

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Thungela’s Goedehoop Colliery has completed the construction of a new cafeteria facility at the Mhluzi Industrial Park in the Steve Tshwete Local Municipality (STLM). The new cafeteria will serve businesses operating in the industrial park, strengthening local economies and contributing to the broader revitalisation of the area.
 

Goedehoop Colliery invested R4,8 million in the facility as part of its Social and Labour Plan. This investment is a direct response to the priorities outlined in the Steve Tshwete Local Municipality’s Integrated Development Plan (IDP), which identifies infrastructure development in local economic zones as key to stimulating entrepreneurship and job creation.
 

Tman Mphokane, general manager at Goedehoop Colliery, said: “Our focus is on building platforms that enable local economic development, and this investment supports small businesses in host communities by creating a space where they can thrive and grow - contributing to the long-term resilience of the community.”
 

In delivering the project, Thungela prioritised the use of suppliers from host communities, advancing its approach to shared value through local procurement. These include Meedu Trading who were appointed as the principal contractor, Syncthor Consulting, who provided professional services, and Blaq Square Interior Design, a beneficiary of Thungela’s enterprise and supplier development programme Thuthukani, who led the interior design scope. Eight small, medium-sized enterprises (SMMES) from the host community were subcontracted, and seven residents were temporarily employed during the construction phase of the cafeteria.
 

Cllr, Mhlonishwa Masilela, Executive mayor of STLM, said: “This is exactly the kind of partnership that is needed. Infrastructure like this creates a tangible platform for small businesses to succeed, and it signals confidence in our local economy. We appreciate Thungela’s commitment to aligning with our development priorities and investing in projects that serve our community long after construction is completed.”
 

The cafeteria now stands as a vital amenity within the industrial park - positioned to support day-to-day operations, serve tenants, and stimulate business activity in the zone.
 

“We are deliberate about aligning our efforts with local development priorities and creating opportunities that have a lasting impact. By partnering with local suppliers and investing in shared growth, we’re building stronger, more inclusive local economies. We believe that real progress happens when investments are made with purpose and partnership,” added Tman.
 

ENDS

Thungela has completed the roll out of a series of first aid training across 45 no-fee schools in the Nkangala and Gert Sibande districts, in Mpumalanga, as part of the Education Initiative launched in 2024. This 5-year initiative is in collaboration with the Mpumalanga Department of Education, and aims to enhance school readiness, literacy and numeracy, while elevating the skills of educators and school management teams and providing psychosocial support. In addition, the initiative also seeks to address infrastructure challenges.
 

A baseline assessment conducted before the initiative was launched identified challenges such as inadequate sick bay necessities at schools and lack of first aid training for educators. The training programme, which includes certification, ensures that the educators and school management representatives are equipped with the skills to effectively manage medical emergencies during school hours.
 

Mpumi Sithole, Executive head of corporate affairs, said: "Safety is our first value, and it is essential that we extend this commitment beyond our operations to the communities where we operate. It is also our firm belief that education and safety are interconnected pillars of community development. Through partnerships with the Mpumalanga Department of Education, Netcare Faculty of Emergency and Critical Care (FECC), and Highveld Hospital, we provided the accredited first-aid training. The baseline assessment we conducted informed the need for essential medical resources to empower schools to become self-reliant in handling emergency response during learning.”
 

Thungela’s investment covered a two-day certified first-aid training for 140 school representatives, conducted by the FECC. All learners and school management representatives who were trained will receive Accredited Level 1 First Aid Certification. Every school also received first-aid kits, with a few others receiving high-low beds, side lockers, duvet covers, fitted sheets, and cardiac tables for their sick bays.
 

The Mpumalanga Department of Education has welcomed this initiative as a meaningful step towards enhancing school safety and preparedness at schools. “Ensuring that our schools are equipped with the necessary skills and resources to respond to emergencies is crucial. This initiative demonstrates a practical and impactful approach to supporting our education system and promoting learner well-being,” said Mr Masilela, Chief education specialist, Nkangala district.
 

Thungela’s commitment to education and safety is aligned to its Socio-Economic Development (SED) goals of improving access to quality education and skills development.

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Thungela recently hosted delegates for a workshop organised by the United Nations University (UNU-FLORES) at the Kromdraai site. The workshop, a partnership between the G20 Global Land Initiative (G20 GLI) and the Land Rehabilitation Society of Southern Africa (LaRSSA), focused on Post-Mining Landscape Restoration. It provided a critical platform for industry leaders, researchers, and policymakers to witness Thungela’s transformative approach to mine closure.

“The closure of a mine is not the end of our journey; it’s the beginning of our commitment to create landscapes that are safe, stable, and capable of sustaining future generations. At Thungela, we see mine closure as a powerful opportunity to drive positive environmental renewal,” says Johan van Schalkwyk, Thungela’s chief operating officer.

The site visit demonstrated how Thungela has turned previously mined land into safe, stable, and functional ecosystems, setting a new standard in responsible environmental stewardship. Thungela’s approach prioritises long-term environmental recovery, biodiversity conservation, and sustainable land use. During the site visit, delegates, including representatives from the UN, G20, African and South African government departments, universities, and industry leaders, witnessed how Thungela is turning mine closure into an opportunity for environmental renewal through initiatives such as:

• Rebuilding natural ecosystems – reintroducing native vegetation and improving soil conditions to create a landscape that supports plant and animal life long after mining operations have ceased.
• Improving water systems – implementing strategies to restore wetlands and enhance water quality, ensuring that nearby communities and natural habitats benefit from cleaner, healthier water sources.
• Repurposing land for economic benefit – exploring opportunities to use rehabilitated land for agriculture, conservation, and community-driven projects, ensuring that former mining sites continue to provide value.
• Applying advanced rehabilitation techniques – using the latest technologies, drone monitoring, data-driven soil restoration, and innovative land-use planning- accelerates the rehabilitation process and maximises long-term impact.

Thungela’s Commitment to Responsible Mine Closure

Thungela’s rehabilitation strategy goes beyond standard regulatory compliance to deliver tangible environmental benefits through innovative projects such as:

• The Kromdraai Water Management Project: A flagship initiative supported by an R380 million investment to restore natural water systems and improve water quality for surrounding communities.
• The DongalockTM System: A passive water treatment technology developed to enhance water quality and support ecosystem recovery.
• The One Million Trees Project: A large-scale biodiversity conservation effort focused on reforesting rehabilitated areas with indigenous vegetation to restore natural habitats.

“Our approach to mine closure is grounded in a deep commitment to responsible environmental stewardship. We continue to push the boundaries of what is possible in post-mining landscape restoration, ensuring that our practices align with global standards and contribute meaningfully to ecosystem recovery and community resilience,” added Johan van Schalkwyk.

UN University’s Dr Alexey Alekseenko said that Thungela stood out for its exceptional professionalism in coal mining and land management, which made it an ideal case study to learn best practices in post-mining restoration.

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Salient features

• Safety: Operated a fatality-free business for more than two years
• Production: Export saleable production increased year-on-year in South Africa and Australia, exceeding full year guidance
• Financial: Adjusted operating free cash flow of R3.6 billion for the year and net cash of R8.7 billion at 31 December 2024, after capital expenditure of R3.4 billion
• Shareholder returns: Declared final cash dividend of R11 per share, taking full year dividend to R13 per share. Announced a further share buyback of up to R300 million
• Capital discipline: Elders construction completed and production ramp-up progressing as planned. Zibulo North Shaft progressing on schedule and within budget

Thungela Resources Limited ("Thungela" or "Group”) delivered a resilient performance for the financial year ended 31 December 2024.

Commenting on the results, Thungela CEO, July Ndlovu, said: "The 2024 results reflect our strong operational performance and disciplined execution of our strategy. Safety remains our first value, and we are unconditional about protecting the lives of our employees. The Group has maintained a fatality-free business for more than two years. Our total recordable case frequency rate (TRCFR) improved to 1.93 in 2024, from 2.80 in 2023. South Africa achieved a historic low TRCFR of 1.07, down from 1.40 in the prior year. In Australia, TRCFR improved significantly from 22.63 in 2023 to 13.21, reflecting a strong focus on critical controls and leadership visibility.

Full year export saleable production exceeded guidance in both South Africa and Australia. South African production increased for the first time in three years, driven by productivity improvements and improved rail performance. Our key life extension projects, Elders and Zibulo North Shaft remain on schedule and within budget.

The Group revenue saw a 16% year-on-year increase, reaching R35.6 billion, despite weaker prices. This increase can be attributed to Ensham’s full-year inclusion in 2024, compared to the four months period post-acquisition in the previous year (September 2023 to December 2023).

Adjusted EBITDA of R6.3 billion and a net profit at R3.5 billion were achieved, with a R676 million contribution from Ensham. The margin contribution from our operation in Australia and the marketing business in Dubai showcase the benefits of our geographic diversification strategy.”

Operational performance
Export saleable production in South Africa reached 13.6Mt and had a free-on-board (FOB) cost per export tonne excluding royalties of R1,130 which was below the low end of the guidance range. In line with the improved rail performance, our South African operations ramped up production for the first time since 2022 without additional capacity to the business.

In Australia, Ensham delivered export saleable production of 4.1Mt (on a 100% basis), a marked performance improvement as compared with the prior year, mainly attributable to productivity improvements. The FOB cost per export tonne excluding royalties was below the low end of the guidance range at R1,433 per tonne.

Global thermal coal market
The global thermal coal market softened in 2024 due to milder winter conditions in the Northern Hemisphere which led to subdued demand in Europe, where coal and gas stock levels remained elevated. Australia’s thermal coal market mirrored this trend with high stock levels, driven by slower seaborne demand in key Asian coal markets, including China, India, Japan and South Korea, where coal-fired power stations are crucial for energy security.

Geopolitical tensions persist, adding uncertainty to energy markets and causing fluctuations in coal and gas supplies. The seaborne thermal coal market's supply dynamics are susceptible to disruptions from domestic production in key emerging economies, such as China and India.

Despite these factors, we remain confident in the long-term fundamentals of coal and its enduring role within the energy mix, supporting global energy demand. Seaborne traded thermal coal demand is expected to remain close to one billion tonnes in 2025. It is important to note that the higher coal demand in these regions more than offsets the decline in the use of coal in developed economies.

Rail performance in South Africa
Improved rail performance allowed Thungela to optimise production supporting higher export saleable production and sales volumes.

Transnet Freight Rail (TFR) achieved an 8.4% performance increase following its annual maintenance shutdown in July 2024, reaching a run rate of 51.9Mtpa for the year. This improvement enabled Thungela to leverage better rail availability.

Executing on our strategic priorities
Thungela is making significant progress in building a long-life business across various geographies. The Group continues to invest in projects that extend the life of its operations while maintaining capital discipline and efficiency.

The completion of the Elders construction phase marks a significant milestone, with production ramping up as per schedule. Once fully operational, Elders is projected to achieve an annual rate of 4Mt, enhancing long-term production outlook. Simultaneously, the Zibulo North Shaft project remains on schedule, targeting completion by 2026. This project is pivotal in extending Thungela’s underground operations until 2038, ensuring sustained production capacity.

The Lephalale Coal Bed Methane (LCBM) project, located in the Waterberg coal field of the Limpopo Province in South Africa, presents a substantial methane gas resource under evaluation for potential development opportunities. In 2025, an estimated capital investment of approximately R400 million is earmarked for acquiring a modular liquefied natural gas plant and developing associated site infrastructure to prove the marketability of the gas.

Moreover, the Group also reinforced its strategic geographic diversification objective by acquiring an additional 15% stake in the Ensham mine in Australia. Additionally, finalising the acquisition of the remaining 27.5% interest in Sungela Holdings will enable Thungela to gain full ownership of the Ensham business upon completion of the transaction.

Commitment to transformation and ESG
Thungela continues to drive sustainability and inclusive growth through strategic decisions that create long-term value. The Rietvlei coal mine was established as a domestic-focused coal project to ensure direct economic benefits for local communities through equity shareholding. Thungela, with an effective 34% shareholding, played a key role in supporting the mine’s sustainability while enabling its black economic empowerment partners to develop the operation.

Now fully operational and with a domestic contract in place, Thungela has exited its position through the sale of its stake for a cash consideration of R186 million, transferring full ownership to its existing partners, demonstrating economic inclusion.

In line with our purpose to create shared value, the Sisonke Employee Empowerment Scheme and the Nkulo Community Partnership Trust, will collectively receive R204 million in dividends.

Shareholder returns
Thungela enhanced its strong financial position despite a weaker pricing environment, ending the year with net cash of R8.7 billion.

The board reaffirmed its commitment to the dividend policy, committing to distribute a minimum of 30% of adjusted operating free cash flow to shareholders. Our strong results allowed us to declare a final ordinary cash dividend of R1.5 billion or R11 per share. This takes the total dividend declared for 2024 to R13 per share. In addition, the board has approved a share buyback of up to R300 million. In aggregate, we are returning 64% of adjusted operating free cashflow to shareholders.

2025 guidance
In South Africa we plan to produce between 12.8Mt and 13.6Mt of export saleable coal. This guidance is informed by our continued productivity and improved TFR performance. FOB cost per export tonne is expected to be between R1,220 and R1,300 per tonne, including royalties.

Sustaining capital expenditure is expected to be between R1,4 billion and R1,7 billion. Expansionary capex is projected to range between R1.1 billion and R1.2 billion.

In Australia, export saleable production guidance for 2025 is between 3.7Mt and 4.1Mt, on a 100% basis.

Looking ahead
"We remain focused on delivering operational excellence and maintaining our cost competitiveness as we position Thungela to benefit from the long-term fundamentals supporting global coal demand. Similarly, we continue to prioritise disciplined capital allocation to ensure long-term shareholder value while advancing our ESG commitments.” Ndlovu concluded.

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