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Interim results for the six months ended 30 June 2025, ordinary cash dividend declaration and a share repurchase

THUNGELA RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2021/303811/06
JSE Share Code: TGA
LSE Share Code: TGA
ISIN: ZAE000296554
Tax number: 9111917259
('Thungela' or the 'Company' and, together with its affiliates, the 'Group')

Interim results for the six months ended 30 June 2025, ordinary cash dividend
declaration and a share repurchase

Thungela's strong balance sheet enables shareholder returns for the six
months ended 30 June 2025 while navigating challenging operating conditions

• Operating a fatality-free business for two and a half years
• Export saleable production in South Africa increased year-on-year to 6.4Mt
and Ensham achieved production of 1.6Mt (on a 100% basis)
• 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
• Declaration of an ordinary interim cash dividend of R2 per share and a share
buyback of up to R140 million
• Shareholder returns of 87% of adjusted operating free cash flow* underscores
our commitment to shareholder returns through the cycle
• The Group remains on track to achieve full year guidance

Key performance metrics(1)
(Rand million unless otherwise stated) 30 June 2025 30 June 2024 % change
Export saleable production -
South Africa (kt) 6,438 6,167 4
Export saleable production - Ensham
(on a 100% basis) (kt) 1,574 1,884 (16)
Revenue 14,813 16,752 (12)
Profit for the reporting period 248 1,186 (79)
Earnings per share (cents/share) 193 952 (80)
Headline earnings per share
(cents/share) 192 952 (80)
Dividend per share (cents/share) 200 200 —
Alternative performance measures*
Adjusted EBITDA 691 2,146 (68)
Adjusted EBITDA margin (%) 5 13 (8pp)
Adjusted operating free cash flow 484 936 (48)
Net cash 6,250 6,683 (6)
Capital expenditure (1,214) (1,541) (21)
FOB cost per export tonne excluding
royalties - South Africa (Rand/tonne) 1,258 1,189 (6)
FOB cost per export tonne excluding
royalties - Ensham (Rand/tonne) 1,694 1,360 (25)

(1) The Group financial results include the results of the Ensham Business at 85% until 28 February 2025,
and 100% from that date.

MESSAGE FROM JULY NDLOVU, CHIEF EXECUTIVE OFFICER

We are proud to report that we have operated for two and a half years without a loss
of life. This bears testament to our unwavering commitment to safety as our first
value. We remain unconditional about protecting the lives of our people.

The global operating environment was characterised by increasing geopolitical
uncertainties and tariff escalations disrupting global supply chains. These
uncertainties resulted in weak demand in key coal demand regions resulting in softer
prices, last seen during the Covid-19 pandemic. The financial results for the six
months ended 30 June 2025 however, demonstrate the strength of our balance
sheet, which has enabled the business to navigate the challenging market and
operating environments while maintaining a disciplined capital allocation approach.
We maintained our focus on controlling the controllables through increased
production in South Africa, notwithstanding the impact of abnormally high rainfall at
some of our opencast operations. In addition, our proactive approach in shielding the
business from currency volatility has contributed R1.4 billion to our earnings.

Our 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. The
Group generated adjusted operating free cash flow* of R484 million for the first half
of the year, which was positively impacted by a working capital unwind of R690
million and cash inflows of R453 million generated from our continued focus on
managing foreign currency risk, resulting in net cash* of R6.3 billion at 30 June
2025.

The Group recorded export saleable production of 8.0Mt (on a 100% basis) for the
first half of the year. In South Africa, export saleable production increased by
approximately 300kt to 6.4Mt, mainly due to productivity gains at Zibulo and Mafube,
while production at Khwezela was impacted by abnormally high rainfall in the period.
Free on board (FOB) cost per export tonne excluding royalties* of R1,258 was in line
with the guidance range. 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. Consequently, guidance for FOB cost per export tonne
excluding royalties* of R1,210 to R1,290 also remains appropriate.

The South African coal industry continues to benefit from the improved rail
performance. In the first half of the year, Transnet Freight Rail achieved an
annualised run rate of 54.3Mt, compared to 51.9Mt for 2024. The improved rail
performance stems from the ongoing industry collaborative initiatives as well as
further optimisation projects, such as the signalling project, which are expected to
improve rail performance going forward.

Ensham achieved export saleable production of 1.6Mt (on a 100% basis), compared
to 1.9Mt (on a 100% basis) in the first six months of 2024. Production and export
saleable product qualities were impacted by challenging geology in the first half of
the year.

FOB cost per export tonne excluding royalties* of R1,694 was above the upper end
of the guidance range, as the mine incurred costs to produce run of mine tonnes
which have not yet been reported as saleable production due to quality variations. It
is expected that these tonnes will be reported as saleable production in the second
half of the year.

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.

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.

Navigating thermal coal markets

Geopolitical tensions and rising tariffs are significantly disrupting global supply
chains and constraining economic growth. Consequently, energy security has
become central to national economic strategies, driving an increase in domestic
production in key demand countries such as China and India. The impact of slowing
growth on coal demand, coupled with increased domestic production, has resulted in
high stockpile levels at major import hubs, leading to depressed prices.

Despite the lower demand for coal in the first half of 2025, coal production is likely to
remain at levels similar to 2024, driven mainly by higher in-country production in
China and India. On the other hand, production from Indonesia has slowed down as
a result of the lower coal prices and the impact of adverse weather conditions.
Production in Australia is also lower as a result of mine accidents and adverse
weather conditions in the first half of the year. Columbia's main coal producers have
recently announced a reduction in annual thermal coal production due to the low
coal price environment.

Looking ahead, the long-term coal fundamentals remain supportive, although
demand for the balance of the year remains contingent on the normal restocking
activities in the Northern Hemisphere. The slowdown in global economic growth may
result in coal prices remaining under pressure in the short term. In this scenario,
further production curtailment is likely to aid rebalancing of supply and demand in the
seaborne market.

Disciplined capital allocation

In the first half of 2025, we completed the share buyback announced in March 2025
for a total consideration of R328 million and also paid R1.4 billion in cash dividends
to shareholders. In February 2025, we acquired a further 15% interest in the Ensham
Mine for a total consideration of AUD48 million and we expect to own 100% of the
Ensham Business upon completion of the transaction with Audley Capital and
Mayfair.

The Group generated cash flows from operating activities of R1.2 billion for the first
half of 2025 and after investing R703 million in sustaining capital expenditure*, this
resulted in an adjusted operating free cash flow* of R484 million for the period. We
continue to cash collateralise our environmental liabilities over time, and have
contributed a further R188 million to the green fund in South Africa. At 30 June 2025,
the Group's net cash* position was R6.3 billion.

Our robust balance sheet position enables us to execute on our core strategic
priorities. We continue to reserve R500 million to complete the Zibulo North Shaft
project and a further R300 million to complete the Lephalale Coal Bed Methane
project.

The board remains committed to the dividend policy, which is to distribute a minimum
of 30% of adjusted operating free cash flow* to shareholders. The board has
resolved to return R421 million to shareholders, which comprises of an interim
ordinary cash dividend of R2 per share and a share buyback of up to R140 million,
subject to favourable market conditions. This represents a total return of 87% of
adjusted operating free cash flow* for the first half of 2025. The Sisonke Employee
Empowerment Scheme and the Nkulo Community Partnership Trust will also receive
a further R31 million collectively.

Given the weak coal prices, US dollar weakness and supply chain risks following the
ongoing trade and tariff uncertainty, the board considers it appropriate to maintain a
cash buffer of R5 billion. The Group holds undrawn credit facilities of R3.2 billion.

In conclusion

Thungela is currently in a period of portfolio change. The ability to successfully
execute on our strategic priorities will ensure that we reshape our business and
entrench resilience through the cycle. As we navigate ongoing complexities in the
operating environment and uncertainties in the macroeconomic landscape, we have
conviction in the outlook that high-quality thermal coal will continue to play a
fundamental role in the global energy demand.

Today represents a significant milestone in my journey as Thungela's chief executive
officer, 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. Together, we have built a sustainable
business with long-life assets across multiple geographies.

As we welcome Moses Madondo as the chief executive officer designate, I am
confident that Thungela is well positioned to continue to deliver on our purpose – to
responsibly create value together for a shared future.

DIVIDEND DECLARATION AND SHARE REPURCHASE

The board has declared an ordinary interim cash dividend of R2 per share, payable
to shareholders on the Johannesburg Stock Exchange and London Stock Exchange
in September 2025 and October 2025, respectively.

In addition, the board has authorised a share repurchase of up to R140 million,
subject to market conditions. This will be executed in the period commencing
19 August 2025 and, unless revised or terminated earlier, ending the last day prior to
the Group's next annual general meeting, and will be subject to the applicable legal
and regulatory requirements.

Further details regarding the dividend payable to shareholders of Thungela as well
as the share repurchase can be found in a separate announcement dated 18 August
2025 on the Johannesburg Stock Exchange News Services (SENS) and the London
Regulatory News Services (RNS).

FORWARD-LOOKING STATEMENTS
This document includes forward-looking statements. All statements included in this
document (other than statements of historical facts) are, or may be deemed to be,
forward-looking statements, including, without limitation, those regarding Thungela's
financial position, business, acquisition and divestment strategy, dividend policy,
plans and objectives of management for future operations (including development
plans and objectives relating to Thungela's products, production forecasts and
resource and reserve positions). By their nature, such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of Thungela, or industry results, to
be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Thungela therefore
cautions that forward-looking statements are not guarantees of future performance.

Any forward-looking statement made in this document or elsewhere is applicable
only at the date on which such forward-looking statement is made. New factors that
could cause Thungela's business not to develop as expected may emerge from time
to time and it is not possible to predict all of them. Further, the extent to which any
factor or combination of factors may cause actual results to differ materially from
those contained in any forward-looking statement are not known. Thungela has no
duty to, and does not intend to, update or revise the forward-looking statements
contained in this document after the date of this document, except as may be
required by law. Any forward-looking statements included in this document have not
been reviewed or reported on by the Group's independent external auditor.

Investors are cautioned not to rely on these forward-looking statements and are
encouraged to read the Interim Financial Statements for the six months ended 30
June 2025 (Interim Financial Statements 2025), which are available from the
Thungela website via the following web link:
https://www.thungela.com/investors/financial-results.

ALTERNATIVE PERFORMANCE MEASURES

Throughout this Results Announcement a range of financial and non-financial
measures are used to assess our performance, including a number of financial
measures that are not defined or specified under International Financial Reporting
Standards (IFRS Accounting Standards), which are termed 'alternative performance
measures' (APMs). Management uses these measures to monitor the Group's
financial performance alongside IFRS Accounting Standards measures, to improve
the comparability of information between reporting periods. These APMs should be
considered in addition to, and not as a substitute for, or as superior to, measures of
financial performance, financial position or cash flows reported in accordance with
IFRS Accounting Standards. APMs are not uniformly defined by all companies,
including those in the Group's industry. Accordingly, these measures may not be
comparable with similarly titled measures and disclosures by other companies. In
this results announcement, APMs are denoted with an asterisk (*).

RESULTS ANNOUNCEMENT

This Results Announcement, including the forward-looking statements, is the
responsibility of the directors of Thungela.

Shareholders are advised that this Results Announcement is only a select extract of
the information contained in the Interim Financial Statements 2025 and does not
contain full or complete details. Any investment decisions by investors and/or
shareholders should be based on a consideration of the Interim Financial
Statements as a whole and investors and/or shareholders are encouraged to review
the Interim Financial Statements 2025, which are available on the Thungela website
via the following web link: https://www.thungela.com/investors/financial-results, and
available on the JSE's cloudlink, at
https://senspdf.jse.co.za/documents/2025/JSE/ISSE/TGAE/TGAInt2025.pdf

A conference call and webcast relating to the details of this Results Announcement
will be held at 12:00 SAST (10:00 GMT) on Monday, 18 August 2025. Details to
register for the conference call and webcast are available below:

Conference call:
https://services.choruscall.eu/DiamondPassRegistration/register?confirmationNumbe
r=2631362&linkSecurityString=63eaf3262

Webcast: https://78449.themediaframe.com/links/thungela250818_1200.html

The condensed consolidated interim financial statements for the six months ended
30 June 2025 were reviewed by PricewaterhouseCoopers Inc. who have issued an
unqualified review report. The full independent auditor's review report and Interim
Financial Statements 2025 are available for viewing on the Thungela website via the
following web link: https://www.thungela.com/investors/finacial-results.

This Results Announcement has not been audited or reviewed by the Group's
independent external auditor. Any reference to future financial performance included
in this announcement has not been separately reported on by the Group's
independent external auditor.

The Company's registered office is located at: 25 Bath Avenue, Rosebank,
Johannesburg, 2196, South Africa.

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the market abuse regulation (EU)
no. 596/2014 as amended by the market abuse (amendment) (UK mar) regulations
2019. Upon the publication of this announcement via the regulatory information
service, this inside information is now considered to be in the public domain.

On behalf of the board of directors

Sango Ntsaluba, Chairperson
July Ndlovu, Chief executive officer

Johannesburg (South Africa)

Date of SENS release: 18 August 2025

Investor relations
Hugo Nunes
Email: hugo.nunes@thungela.com

Shreshini Singh
Email: shreshini.singh@thungela.com

Media
Hulisani Rasivhaga
Email: hulisani.rasivhaga@thungela.com

UK Financial adviser and corporate broker
Panmure Liberum Limited
Tel: +44 20 3100 2000

Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
Tel: +27 11 282 8000

Date: 18-08-2025 08:00:00
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