Investor Relations Contact
Ryan AfricaHead Office: 25 Bath Avenue, Rosebank
Email: ryan.africa@thungela.com
Tel: +27 (0) 11 638 9363
SENS & Regulatory Announcements
Stock exchange news service (SENS) and other regulatory announcements.
Incorrect disclosure of significant holding of Thungela Resources ordinary shares
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
(‘Company’ or ‘Thungela Resources’)
INCORRECT DISCLOSURE OF SIGNIFICANT HOLDING OF THUNGELA RESOURCES
ORDINARY SHARES
Shareholders were advised on 7 September 2023 that JPMorgan Chase & Co. had notified the
Company that accounts under its management had increased its holding in the Company to 5.21%
of the issued ordinary shares in the Company.
Shareholders are now advised that the Company has been notified by JPMorgan Chase & Co
that, due to a late cancellation of trade, the notification as announced was incorrect and that ac-
counts under its management remain at 4.60% of the issued ordinary shares in the Company.
The Company has requested that the Takeover Regulation Panel in South Africa disregard the
notice erroneously lodged on 7 September 2023.
The board of directors of Thungela accepts responsibility for the information contained in this
announcement as it relates to the Company and confirms that, to the best of its knowledge and
belief, such information relating to Thungela Resources is true and that this announcement does
not omit anything likely to affect the importance of such information.
Johannesburg
19 September 2023
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
UK Financial adviser and corporate broker
Liberum Capital Limited
Date: 19-09-2023 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Disclosure of significant holding of Thungela Resources ordinary shares
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
(‘Company’ or ‘Thungela Resources’)
DISCLOSURE OF SIGNIFICANT HOLDING OF THUNGELA RESOURCES ORDINARY
SHARES
In accordance with section 122(3)(b) of the Companies Act, No. 71 of 2008 as amended ("the
Companies Act"), regulation 121(2)(b) of the Companies Regulations, 2011 and paragraph 3.83(b)
of the JSE Limited Listings Requirements, shareholders are advised that JPMorgan Chase & Co.
has notified the Company that accounts under its management have increased its holding in the
Company such that JPMorgan Chase & Co. now holds 5.21% of the issued ordinary shares in the
Company.
As required in terms of section 122(3)(a) of the Companies Act, the Company has filed the required
notice with the Takeover Regulation Panel.
The board of directors of Thungela accepts responsibility for the information contained in this
announcement as it relates to the Company and confirms that, to the best of its knowledge and
belief, such information relating to Thungela Resources is true and that this announcement does
not omit anything likely to affect the importance of such information.
Johannesburg
7 September 2023
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
UK Financial adviser and corporate broker
Liberum Capital Limited
TR-1: Standard form for notification of major holdings
NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft
Word format if possible) i
1a. Identity of the issuer or the underlying issuer Thungela Resources Ltd
of existing shares to which voting rights are at-
tached ii:
1b. Please indicate if the issuer is a non-UK issuer (please mark with an "X" if appropriate)
Non-UK issuer
2. Reason for the notification (please mark the appropriate box or boxes with an "X")
An acquisition or disposal of voting rights X
An acquisition or disposal of financial instruments
An event changing the breakdown of voting rights
Other (please specify) iii:
3. Details of person subject to the notification obligation iv
Name JPMorgan Chase & Co
City and country of registered office (if applicable) London, UK
4. Full name of shareholder(s) (if different from 3.) v
Name
City and country of registered office (if applicable)
5. Date on which the threshold was crossed or 04/09/2023
reached vi:
6. Date on which issuer notified (DD/MM/YYYY): 06/09/2023
7. Total positions of person(s) subject to the notification obligation
% of voting rights at- % of voting rights Total of both in % Total number of
tached to shares (to- through financial instru- (8.A + 8.B) voting rights held
tal of 8. A) ments in issuer (8.A +
(total of 8.B 1 + 8.B 2) 8.B) vii
Resulting situation 5.21% 5.21% 7,317,371
on the date on which
threshold was
crossed or reached
Position of previous 2.46% 2.46%
notification (if
applicable)
8. Notified details of the resulting situation on the date on which the threshold was crossed or
reached viii
A: Voting rights attached to shares
Class/type of Number of voting rights ix % of voting rights
shares
ISIN code (if possible) Direct Indirect Direct Indirect
(DTR5.1) (DTR5.2.1) (DTR5.1) (DTR5.2.1)
7,317,371 5.21%
SUBTOTAL 8. A 7,317,371 5.21%
B 1: Financial Instruments according to DTR5.3.1R (1) (a)
Type of financial in- Expiration Exercise/ Number of voting rights % of voting rights
strument date x Conversion Period xi that may be acquired if
the instrument is
exercised/converted.
SUBTOTAL 8. B 1
B 2: Financial Instruments with similar economic effect according to DTR5.3.1R (1) (b)
Type of financial Expiration Exercise/ Physical or Number of % of voting rights
instrument date x Conversion Pe- cash voting rights
riod xi Settlement xii
SUBTOTAL
8.B.2
9. Information in relation to the person subject to the notification obligation (please mark the
applicable box with an "X")
Person subject to the notification obligation is not controlled by any natural person or legal entity and does not
control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuer xiii
Full chain of controlled undertakings through which the voting rights and/or the X
financial instruments are effectively held starting with the ultimate controlling natural person or legal entity
(please add additional rows as necessary) xiv
Name xv % of voting rights if it % of voting rights Total of both if it
equals or is higher through financial in- equals or is higher
than the notifiable struments if it equals than the notifiable
threshold or is higher than the threshold
notifiable threshold
JPMorgan Chase & Co 5.21% 5.21%
10. In case of proxy voting, please identify:
Name of the proxy holder
The number and % of voting rights held
The date until which the voting rights will be held
11. Additional information xvi
Place of completion London, UK
Date of completion 06 September 2023
Date: 07-09-2023 12:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Thungela announces completion of transaction to acquire controlling shareholding in the Ensham coal mine
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')
THUNGELA ANNOUNCES COMPLETION OF TRANSACTION TO ACQUIRE
CONTROLLING SHAREHOLDING IN THE ENSHAM COAL MINE
Earlier this year Thungela announced that it will acquire a majority shareholding interest
in Sungela Holdings, which in turn will acquire an 85% interest in the Ensham Business.
Thungela is pleased to announce that all conditions precedent relating to the acquisition
have now been fulfilled and that the Transaction has become unconditional. The
effective date of completion will be 31 August 2023, and Thungela will assume
operational control of the Ensham Business from 1 September 2023.
The acquisition of the Ensham Business is a significant step in Thungela’s strategy to
pursue geographic diversification. The transaction will also allow the Group to leverage
its core capabilities in a commodity and mining method which it understands well, while
providing access to new markets and to the Newcastle export coal price.
Based on Ensham’s performance up to completion, the mine is expected to produce
approximately 2.7Mt of export saleable production (on a 100% basis, at an average
quality of 5,850 kcal/kg) in 2023, at an FOB cost of between USD110 and USD120 per
tonne.
The terms of the Transaction remain unchanged, save for the fact that the Co-investors
are required to apply not less than 90% (previously 70%) of all distributions received from
Sungela Holdings to service the Co-investors Mezzanine Loans and that the term of the
Loans is revised to 18 months (previously 4 years).
The Transaction was structured to enable Sungela to benefit from the economics of the
Ensham Business (subject to certain limits) during the period between 1 January 2023
and the date of completion. The determination of the economic benefit will be finalised
over a period of up to three months following completion. The Transaction is also subject
to customary working capital adjustments upon completion.
Thungela CEO, July Ndlovu, commented on the Transaction: “We are delighted to
welcome our colleagues from Ensham into the Thungela family as they continue to build
on a proud history of safe production in the Bowen Basin region of Queensland. We look
forward to learning from them and also to sharing our knowledge.
“Thungela is proud to have concluded a landmark transaction with Idemitsu, a responsible
and reputable owner with well-established processes and systems. The transaction
delivers on our purpose to responsibly create value together for a shared future, and we
will continue to support existing regional communities while also delivering superior
returns for the Group’s shareholders.”
Capitalised terms used in this announcement shall bear the same meanings as those
defined in the SENS and RNS announcements dated 3 February 2023.
Rosebank
29 August 2023
Disclaimer
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.
Investor Relations
Ryan Africa
Email: ryan.africa@thungela.com
Media Contacts
Tarryn Genis
Email: tarryn.genis@thungela.com
UK Financial adviser and corporate broker
Liberum Capital Limited
Tel: +44 20 3100 2000
Sponsor
Rand Merchant Bank
(A division of FirstRand Bank Limited)
Date: 29-08-2023 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Dealing in securities by a prescribed officer
Thungela Resources Limited
Incorporated in the Republic of South Africa
Registration number: 2021/303811/06
ISIN: ZAE000296554
JSE share code: TGA
LSE share code: TGA
("Thungela Resources" or "Company")
DEALING IN SECURITIES BY A PRESCRIBED OFFICER
In compliance with paragraphs 3.63 to 3.74 of the Listings Requirements of the JSE Limited, the following
information relating to the dealing in securities by a prescribed officer of Thungela Resources is disclosed:
Prescribed Officer : Lesego Mataboge
Company : Thungela Resources
Date of transaction : 22 August 2023
Class of securities : Thungela Resources ordinary shares
Nature of transaction : On-market sale of ordinary shares
Number of securities : 1336
Volume weighted average sale price per share : R143.18
Highest sale price per share : R143.21
Lowest sale price per share : R143.15
Total value of transaction : R191 298.78
Nature of interest : Direct, beneficial
Clearance obtained : Yes
UK Financial adviser and corporate broker
Liberum Capital Limited
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Rosebank
22 August 2023
Notification and public disclosure of transactions by persons discharging managerial
responsibility and persons closely associated with them.
Notification of a Transaction pursuant to Article 19(1) of Regulation (EU) No. 596/2014
1 Details of the person discharging managerial responsibilities/person closely associated
a. Name Lesego Mataboge
2 Reason for notification
a. Position/Status PDMR
b. Initial notification/Amendment Initial
3 Details of the issuer, emission allowance market participant, auction platform, auctioneer or
auction monitor
a. Name Thungela Resources Limited
b. LEI 213800EGYK3BN3SRIF27
4 Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each
type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a. Description of the Ordinary shares of no par value
financial instrument,
type of instrument ISIN: ZAE000296554
Identification Code SEDOL: BMV3M27
b. Nature of the Sale of Shares
transaction
c. Price(s) and Volume 220 Price R143.15
volume(s) Volume 829 Price R143.19
Volume 287 Price R143.21
d. Aggregated Price: ZAR143.18
information
- Aggregated Volume Volume: 1336
- Price ZAR191 298.78
e. Date of the 22 August 2023
transaction
f. Place of the XJSE
transaction
Date: 22-08-2023 05:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Ordinary cash dividend declaration
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')
ORDINARY CASH DIVIDEND DECLARATION
The Thungela board of directors approved the declaration of an interim gross ordinary
cash dividend of 1,000.00 cents per share (South African rand). The dividend has been
declared from retained earnings accrued during the six-month period ended 30 June
2023. The Company’s issued share capital at the declaration date is 140,492,585
ordinary shares.
The salient dates pertaining to the cash dividend are as follows:
JSE LSE
Declaration of ordinary cash dividend Monday, Monday,
and currency conversion rate 21 August 2023 21 August 2023
announced
Last day for trading to qualify and Tuesday, Wednesday,
participate in the dividend 19 September 2023 20 September 2023
Trading ex-dividend commences Wednesday, Thursday,
20 September 2023 21 September 2023
Record date Friday, Friday,
22 September 2023 22 September 2023
Payment date to shareholders Tuesday, Monday,
26 September 2023 9 October 2023
No transfers of shareholdings to and from South Africa or the United Kingdom will be
permitted between Tuesday, 19 September 2023 and Friday, 22 September 2023 (both
dates inclusive). Share certificates may not be dematerialised or rematerialised between
Wednesday, 20 September 2023 and Friday, 22 September 2023 (both dates inclusive).
Any changes to the dividend instructions and timetable will be announced on SENS
and RNS.
The salient dates have been set as above in order to allow non-South African resident
shareholders sufficient time to apply for a reduced rate of dividend withholding tax in the
event that they may qualify for this.
The dividend is payable in South African rand to shareholders recorded as such on the
register on the record date and whose shares are held through Central Securities
Participants and brokers traded on the JSE.
Shareholders on the United Kingdom register of members will be paid in Pound sterling.
The Pound sterling cash equivalent will be calculated using the following exchange rate:
GBP1:ZAR24.26300, being the five-day (business days) average GBP:ZAR exchange
rate (Bloomberg) up to Thursday, 17 August 2023.
Shareholders are encouraged to ensure that their bank mandates or international
payment instructions have been recorded by their service provider or registrars before
the last day to trade for this dividend. Electronic payments ensure more efficient and
timely payment. It should be noted that cheques are no longer permitted to be issued or
processed by South African banks; however, in the UK registrars will still issue and post
cheques in the absence of specific mandates or payment instructions.
TAX TREATMENT FOR SHAREHOLDERS ON THE SOUTH AFRICAN REGISTER
The dividend will have no tax consequences for Thungela but will be subject to 20%
withholding tax for shareholders who are not exempt from dividends tax, or who do not
qualify for a reduced rate of withholding tax in terms of any applicable agreement for the
avoidance of double taxation (DTA) concluded between South Africa and the country of
residence of the shareholder.
Should dividend withholding tax be withheld at a rate of 20%, the net dividend amount
due to shareholders is 800.00 cents per share (South African rand) – 1,000.00 cents
gross dividend per share less 200.00 cents dividend withholding tax per share.
TAX TREATMENT FOR SHAREHOLDERS ON THE UK REGISTER
Thungela has retained Computershare UK as intermediary to receive and process the
relevant prescribed declarations and forms as set out below. Any reference below to
documentation which is required to be submitted to Thungela, should therefore be
submitted to Computershare UK.
Non-South African tax resident shareholders will be paid the dividend subject to 20%
withholding tax for shareholders. Certain non-South African tax resident shareholders
may, however, be entitled to a reduced rate of dividends tax due to the provisions of an
applicable tax treaty.
Shareholders who qualify for an exemption from dividends tax in terms of section 64F of
the South African Income Tax Act 58 of 1962 must provide:
- A declaration that the dividend is exempt from dividends tax.
- A written undertaking to inform the regulated intermediary should the circumstances
affecting the exemption change or the beneficial owner cease to be the beneficial
owner, both in the form prescribed by the Commissioner for the South African
Revenue Service to the regulated intermediary prior to the required date in order to
benefit from the exemption. The prescribed form has been transposed onto the
Computershare UK format.
Shareholders on the UK register will be sent the required documentation for completion
and return to Computershare UK. Qualifying shareholders on the UK register are
advised to arrange for the above mentioned documents to be submitted to
Computershare UK by Friday, 15 September 2023.
Should dividend withholding tax be withheld at a rate of 20%, the net dividend amount
due to shareholders is 32.98 pence per share (Pound sterling) – 41.22 pence gross
dividend per share less 8.24 pence dividend withholding tax per share.
By order of the board.
Date of SENS release: 21 August 2023
DISCLAIMER
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.
Transfer Secretaries (UK)
Computershare Investor Services
Email: WebCorres@computershare.co.uk
Transfer Secretaries (South Africa)
Computershare Investor Services Proprietary Limited
Email: Web.Queries@computershare.co.za
Investor Relations
Ryan Africa
Email: ryan.africa@thungela.com
UK Financial adviser and corporate broker
Liberum Capital Limited
Tel: +44 20 3100 2000
Sponsor
Rand Merchant Bank
(A division of FirstRand Bank Limited)
Date: 21-08-2023 08:01:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Click below to view full PDF article
https://senspdf.jse.co.za/documents/2023/jse/isse/tgae/Int2023.pdf
2023 Interim results announcement and cash dividend declaration
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')
2023 Interim results announcement and cash dividend declaration
THUNGELA REPORTS RESILIENT PERFORMANCE FOR THE SIX MONTHS ENDED
30 JUNE 2023 (“H1 2023”) AND DECLARES R10 PER SHARE DIVIDEND,
REAFFIRMING DIVIDEND POLICY
KEY FEATURES
- Total recordable case frequency rate (TRCFR) improved to 1.33, from 1.59 in June
2022
- Profit for the reporting period of R3.0 billion reflecting a significant decrease in
thermal coal prices (H1 2022: R9.6 billion)
- Headline earnings of R22.46 per share (H1 2022: R67.23)
- Adjusted operating free cash flow* of R4.3 billion (H1 2022: R8.9 billion) and net
cash* position of R13.6 billion (H1 2022: R14.8 billion)
- Interim ordinary cash dividend declared of R10 per share, 33% of adjusted operating
free cash flow*, resulting in R1.4 billion returned to shareholders
- Sisonke Employee Empowerment Scheme and Nkulo Community Partnership Trust
to receive a contribution of R156 million collectively in keeping with commitment to
create shared value
- Increased life of mine by 10 years through approval of the Zibulo North Shaft project
- Ensham transaction expected to complete by 31 August 2023
- Full year guidance range for export saleable production narrowed to between 11.5Mt
and 12.5Mt
- Full year guidance for FOB cost per export tonne* revised to R1,120 to R1,200
excluding royalties, or R1,170 to R1,250 per tonne including royalties. Guidance for
capital expenditure, both sustaining and expansionary, reiterated
KEY FINANCIAL INFORMATION
Financial overview
Rand million (unless otherwise stated) H1 2023 H1 2022 % change
Revenue 14,359 26,176 (45)
Operating costs (10,604) (10,119) 5
Profit for the reporting period 3,005 9,630 (69)
Earnings per share (cents/share) 2,245 6,723 (67)
Headline earnings per share (cents/share) 2,246 6,723 (67)
Dividend per share (cents/share) 1,000 6,000 (83)
Alternative performance measures*
Adjusted EBITDA 4,380 16,679 (74)
Adjusted EBITDA margin (%) 31 64 (33pp)
Adjusted operating free cash flow 4,298 8,934 (52)
Net cash 13,579 14,815 (8)
Capital expenditure 893 568 57
pp – percentage points change period on period
Message from July Ndlovu, Chief Executive Officer
Thungela continued to advance its strategic priorities, amid challenging market conditions in
the first half of 2023, by investing through the cycle and focusing on what we can control:
- Continued to prioritise safety - TRCFR improved to 1.33, from 1.59 in June 2022 (1).
- Took measures to strengthen business resilience in the face of softer coal prices and
persistent Transnet Freight Rail (TFR) underperformance.
- Increased life of mine profile through approval of the Zibulo North Shaft project.
- Announced the acquisition of Ensham, marking a significant step in Thungela’s strategy
to pursue geographical diversification.
- Maintained disciplined capital allocation and reaffirmed dividend policy: interim dividend
of R10 per share - 33% of adjusted operating free cash flow*.
Safety is our first value and we remain focused on operating a fatality-free business.
Tragically our colleague Mr Breeze Mahlangu passed away in February following
complications after an accident in December 2022. We have continued our relentless
pursuit to eliminate fatalities in our business and I am encouraged by the improvement in
our safety performance, with TRCFR of 1.33 for the first six months of 2023.
We have continued to focus on ‘controlling the controllables’ in the face of the challenging
external factors which characterised the first half of the year and, notwithstanding the softer
price environment and the lack of any improvement in rail performance, Thungela recorded
R3.1 billion (R22.45 per share) in earnings attributable to shareholders of the Group, and
adjusted EBITDA* of R4.4 billion in the first half of 2023.
The Group generated adjusted operating free cash flow* of R4.3 billion for the reporting
period. The net cash* position stood at R13.6 billion at 30 June 2023. Adjusted operating
free cash flow* for the period benefited from the fact that sustaining capital spend is
traditionally weighted towards the second half of the year, as well as from the unwind of
working capital.
Market fundamentals remain strong despite softer short-term prices
The pricing environment in the first half of 2023 was substantially weaker compared to
the first half of 2022.
Seaborne coal prices fell sharply as European buying slowed significantly on the back
of record coal and gas stock levels coming out of a milder winter. This resulted in the
redirection of coal volumes to Asian markets which also showed signs of weaker
demand, especially from Japan and China.
Efforts to curb inflation through monetary tightening policies globally have also resulted in a
growth slow down with reduced economic activity and demand for energy.
Market fundamentals however remain strong and there are reasons to remain optimistic on
thermal coal prices. LNG prices are now starting to find support, which will make coal more
competitive as a fuel source towards the end of the year as the European winter
approaches. Coal production from Russia’s western regions is also slowly being curtailed at
current pricing levels.
We believe the current price headwinds have marked a pause in attractive prices, rather
than heralded a sustained downturn. We expect demand for coal to remain robust in
developing countries, especially in Asia which remains reliant on thermal coal, as countries
such as China and India continue to build coal-fired power plants.
Underinvestment into coal supply has continued, with the exception of China and India
(both focusing on domestic supply) and Indonesia, which produces lower quality coal. At the
same time, we have seen an increase in new coal-fired power generation coming online,
especially in China, all of which should be supportive of coal prices in the medium to longer
term.
Continued underperformance on the part of TFR has again hampered our ability to operate
optimally. TFR achieved an annualised run rate of 48Mtpa for the industry in the first half of
2023, a deterioration of 13% compared to the 55Mtpa run rate achieved in the first half of
2022. TFR suffered two derailments in May 2023 which cost Thungela at least 340kt in rail
capacity. After a particularly poor first quarter, the rail performance stabilised in the second
quarter - following the derailments TFR performance averaged 50Mtpa for the six-week
period preceding its annual maintenance shut in July. The stabilisation is the result of
intensive collaboration between TFR and the South African coal industry, including
Thungela.
A consistently performing and well managed bulk rail infrastructure remains critical to the
coal mining industry and the South African economy. TFR has stated that it will achieve
60Mt in the 2023/2024 contractual year. The recent formation of the President’s National
Logistics Crisis Committee and significant changes to the Transnet board are positive
indications of the intent to achieve improved performance. TFR’s ability to improve rail
performance hinges on several important factors, critical of which is the resolution of an
impasse which currently prevents TFR from procuring much needed spares and
locomotives.
Resilience and readiness
While softer coal prices and poor rail performance have weighed heavily on Thungela’s
performance in the first half of 2023, we expect these factors to improve over time. The
Group must therefore ensure that it is both resilient to weaker short-term market conditions
and ready to take advantage of improved conditions as they arise. This implies a continuum
of decisive actions and strategies.
Creating a resilient business requires focusing on two facets in order to optimise the
business for current and future volatility.
The first is our decision to structurally resize the portfolio in response to rail constraints.
Previously, we had curtailed high-cost operations such as Khwezela. We have
subsequently ramped up Khwezela and reduced underground sections that are starting to
face increasingly complex geological conditions.
The second is to improve our competitiveness by increasing productivity and ensuring the
optimal cost base for our business. In the event that prices remain depressed for a
protracted period and rail performance does not improve, we may be required to consider
further revisions to our portfolio.
Thungela’s ability to take these actions, to protect cash flow through resizing the portfolio
and to improve our competitiveness, is underpinned by the Group’s strong balance sheet
and liquidity position. This allows us to weather the challenging market conditions and focus
on operational excellence, while continuing to fund our capital projects.
Readiness for improved market and infrastructure conditions is premised on structuring the
Group for success regardless of market cycles. While the softer prices and continued
uncertainty relating to TFR performance present near-term challenges, this does not
change the Group’s longer-term strategic priorities: to drive our ESG aspirations, maximise
the full potential of our existing assets, create future diversification options and optimise
capital allocation.
Maximising value from existing assets
Investing through the cycle in projects which realise the full potential of our existing assets
has been a key tenet of Thungela’s strategy since listing. We are pleased to report that we
continue to make good progress on the Elders production replacement project, approved by
the board last year, and we expect first coal from the underground operation by the first half
of 2024, in line with our original target.
In June 2023, the board also approved the Zibulo North Shaft project at a total capital cost
of R2.4 billion. The project will extend the life of our flagship Zibulo operation by at least 10
years from 2025.
Both projects secure the future of the business by improving the quality and overall cost
competitiveness of the portfolio.
Acquisition of Ensham Coal Mine in Australia
The proposed acquisition of the Ensham Business in Australia announced in February
marks the first milestone of our geographic diversification strategy which aims to further
enhance the resilience of our portfolio.
Ensham is a large, high quality asset with long life potential and provides Thungela with
entry into the southern Bowen Basin in Queensland, a leading mining jurisdiction, with
mature and well established infrastructure.
The transaction was structured to enable the Group to benefit from the economics of the
Ensham Business (subject to a limit) between 1 January 2023 and the completion date.
Ensham will be acquired at a cost of approximately R4.1 billion and this investment is set to
be earnings and cash flow accretive, with strong potential for a short payback period. The
acquisition also brings increased scale and marketing capability, providing access to Japan
and other Asian markets.
Thungela will assume operational control of the Ensham Business following completion of
the transaction, which is expected on 31 August 2023 given that all key regulatory
conditions precedent have now been met, with only a few commercial conditions (such as
the transfer of material supplier contracts) yet to be concluded. A comprehensive roadmap
has been prepared to ensure alignment in terms of priorities, governance and other aspects
of integration.
Commitment to capital allocation framework
The board reaffirms its commitment to Thungela’s dividend policy to target a minimum
payout of 30% of adjusted operating free cash flow*. The board has accordingly declared
an interim dividend of R10 per share. Thungela shareholders will receive R1.4 billion in
total, which represents 33% of adjusted operating free cash flow* for the period ended
30 June 2023. The Sisonke Employee Empowerment Scheme and the Nkulo Community
Partnership Trust will receive a further R156 million in aggregate.
The board's commitment to maximising shareholder value underscores the importance of
the completion of the Elders and Zibulo North Shaft projects. Approximately R3.8 billion is
yet to be spent on these projects, which will not only enhance our portfolio's quality and
competitiveness but also extend the life of our business.
The board also continues to monitor the appropriate timing for the execution of a potential
share buyback. The prevailing market conditions, and resultant need for balance sheet
flexibility, call for a cautious approach to capital allocation until clarity emerges on the
trajectory of a possible recovery in market conditions and rail performance.
Looking ahead
It is prudent to narrow our full year export saleable production guidance range for 2023 to
between 11.5Mt and 12.5Mt. Achieving the lower end of this range requires an annualised
TFR industry run rate of 47Mtpa in the second half of the year – the ongoing collaboration
between TFR and industry should ensure that this run rate is achieved.
The long-term coal market remains structurally attractive and Thungela is building its own
export marketing capabilities as the offtake agreement with Anglo American comes to an
end in mid-2024.
We will continue to closely monitor the trajectory of thermal coal prices and rail
performance, and the impact this will have on the future size and shape of an appropriate
portfolio in terms of cost, productivity and sustaining capital.
Thungela’s objectives remain clear: we must continue to focus on the factors we can control
in order to safeguard performance, invest in our strategic projects and maintain disciplined
capital allocation. This will ensure that we are able to continue to responsibly create value
for our stakeholders.
While much of the focus will be on productivity and cost improvements, it is important to
emphasise that focusing on what we are able to control goes hand in hand with operating
responsibly, ensuring the safety and health of our employees, meeting our responsibilities
to the environment and delivering on our social obligations. It also requires us to step up
our efforts together with industry, government and Transnet to find sustainable solutions to
the logistics challenges facing South Africa.
Finally, we are confident that our strategy, disciplined capital allocation approach and
enhanced resilience will allow us to navigate the challenging market conditions we are
currently facing; while improvements to the overall competitiveness of our portfolio will
continue to create superior returns for our shareholders in the long-term.
July Ndlovu
21 August 2023
Operational Outlook
2023
2023 Previous
Revised guidance
Export saleable production (Mt) 11.5 – 12.5 10.5 – 12.5
FOB cost per export tonne* (Rand/tonne) 1,170 – 1,250 1,131 – 1,264
FOB cost per export tonne excluding 1,120 – 1,200 1,047 – 1,180
royalties* (Rand/tonne)
Capital – sustaining (Rand billion) 1.3 – 1.5 1.3 – 1.5
Capital – expansionary (Rand billion) 1.6 – 1.8 1.6 – 1.8
Looking ahead, the Group is updating its operational outlook for the 2023 year, based on
operations for the first six months of the year. The range for export saleable production is
accordingly narrowed to between 11.5Mt and 12.5Mt. Achieving the lower end of this range
requires an annualised TFR industry run rate of 47Mtpa in the second half of the year.
Our guidance for FOB cost per export tonne* for 2023 has been revised to between R1,120
and R1,200 excluding royalties. Including royalties, the guidance range is revised to
between R1,170 and R1,250 per tonne using a forecast Benchmark coal price of USD100
per tonne. This increase is primarily due to a lower domestic by-product revenue offset from
Isibonelo and Mafube.
Capital expenditure guidance remains unchanged. Our sustaining capital expenditure
guidance for 2023 remains between R1.3 billion and R1.5 billion. Expansionary capex is
expected to be between R1.6 billion and R1.8 billion, relating primarily to R1.2 billion for the
Elders project and R0.5 billion for the Zibulo North Shaft project.
The 2023 cost guidance provided reflects the impact of the reduction in underground
sections already undertaken this year. We have embarked on a programme to improve
productivity across our operations as well as to reduce costs where we have removed
production. The outcome of this work will be reflected in our 2024 guidance which we
expect to provide when we report our full year results in March 2024.
The guidance for 2023 excludes the Ensham Business and we will accordingly only provide
guidance after completion of the transaction.
Interim dividend
The board has declared an interim ordinary cash dividend of R10.00 per share payable on
26 September 2023 and 9 October 2023 to shareholders on the JSE and LSE respectively.
Further details regarding the dividend payable to shareholders of Thungela may be found in
a separate announcement on SENS and RNS dated 21 August 2023.
Footnote
(1) TRCFR for H1 2022 was previously reported in the Interim Financial Statements for the
six months ended 30 June 2022 as 1.48. This figure was subsequently updated at year end
to reflect the reclassification of an injury from a first-aid case to a medical treatment case.
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 2023, which are available from the Thungela website via the following web link:
https://www.thungela.com/investors/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), which are
termed ‘Alternative Performance Measures’ (APMs). Management uses these measures to
monitor the Group’s financial performance alongside IFRS 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. APMs are
not uniformly defined by all companies, including those in the Group’s industry. Accordingly,
they may not be comparable with similarly titled measures and disclosures by other
companies. In this results announcement, APMs are denoted with an asterisk (*).
ABOUT THIS RESULTS ANNOUNCEMENT
This results announcement is the responsibility of the board of directors of Thungela.
Shareholders are advised that this results announcement is only a select extract of the
information contained in the Interim Financial Statements 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 which are
available on the Thungela website via the following web link:
https://www.thungela.com/investors/results and has been published on SENS, the
Johannesburg Stock Exchange News Service, at
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/TGAE/Int2023.pdf
A conference call and audio webinar relating to the details of this announcement will be
held at 12:00 SAST (11:00 BST) on Monday 21 August 2023. A recording of the webinar will
be made available on the Thungela website from 15:00 SAST (14:00 BST) on the same
date.
Conference Call registration:
https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=
4803796&linkSecurityString=c5e389d68
Webinar registration:
https://78449.themediaframe.com/links/thungela230821_1200.html
The condensed consolidated interim financial statements for the six months ended 30 June
2023 were reviewed by PricewaterhouseCoopers Incorporated who have issued an
unmodified review report. This results announcement and the operational outlook have not
been audited or reviewed by the Group’s independent external auditor.
Copies of the Interim Financial Statements for the six months ended 30 June 2023 may be
requested by contacting Thungela Investor Relations by email at ryan.africa@thungela.com
and are also available for inspection at the Company’s registered office and at the offices of
the Company’s sponsor, to investors and/or shareholders at no charge, on any business
day between the hours of 08:00 – 17:00. The Company’s registered office is located at: 25
Bath Avenue, Rosebank, Johannesburg, 2196, South Africa. The Company's sponsor's
office is located at: 1 Merchant Place, Cnr Rivonia Road and Fredman Drive, Sandton,
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: 21 August 2023
Investor Relations
Ryan Africa
Email: ryan.africa@thungela.com
Media Contacts
Tarryn Genis
Email: tarryn.genis@thungela.com
UK Financial adviser and corporate broker
Liberum Capital Limited
Tel: +44 20 3100 2000
Sponsor
Rand Merchant Bank
(A division of FirstRand Bank Limited)
Date: 21-08-2023 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
TR-1: Standard form for notification of major holdings
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
(‘Company’ or ‘Thungela Resources’)
TR-1: Standard form for notification of major holdings
NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft
Word format if possible)
1a. Identity of the issuer or the underlying issuer THUNGELA RESOURCES LTD
of existing shares to which voting rights are at-
tached ii:
1b. Please indicate if the issuer is a non-UK issuer (please mark with an "X" if appropriate)
Non-UK issuer
2. Reason for the notification (please mark the appropriate box or boxes with an "X")
An acquisition or disposal of voting rights X
An acquisition or disposal of financial instruments
An event changing the breakdown of voting rights
Other (please specify) iii:
3. Details of person subject to the notification obligation iv
Name PUBLIC INVESTMENT CORPORATION SOC LIMITED
City and country of registered office (if applicable) PRETORIA, SOUTH AFRICA
4. Full name of shareholder(s) (if different from 3.) v
Name
City and country of registered office (if applicable)
5. Date on which the threshold was crossed or 27/06/2023
reached vi:
6. Date on which issuer notified (DD/MM/YYYY): 29/06/2023
7. Total positions of person(s) subject to the notification obligation
% of voting rights at- % of voting rights Total of both in % Total number of
tached to shares (to- through financial instru- (8.A + 8.B) voting rights held
tal of 8. A) ments in issuer (8.A +
(total of 8.B 1 + 8.B 2) 8.B) vii
Resulting situation 13.998% 13.998% 19 666 552
on the date on which
threshold was
crossed or reached
Position of previous 14.395% 14.395%
notification (if
applicable)
8. Notified details of the resulting situation on the date on which the threshold was crossed or
reached viii
A: Voting rights attached to shares
Class/type of Number of voting rights ix % of voting rights
shares
ISIN code (if possible) Direct Indirect Direct Indirect
(DTR5.1) (DTR5.2.1) (DTR5.1) (DTR5.2.1)
19 666 552 13.998%
SUBTOTAL 8.A 19 666 552 13.998%
B 1: Financial Instruments according to DTR5.3.1R (1) (a)
Type of financial in- Expiration Exercise/ Number of voting rights % of voting rights
strument date x Conversion Period xi that may be acquired if
the instrument is
exercised/converted.
SUBTOTAL 8. B 1 NIL NIL
B 2: Financial Instruments with similar economic effect according to DTR5.3.1R (1) (b)
Type of financial Expiration Exercise/ Physical or Number of % of voting rights
instrument date x Conversion Pe- cash voting rights
riod xi Settlement xii
SUBTOTAL NIL NIL
8.B.2
9. Information in relation to the person subject to the notification obligation (please mark the
applicable box with an "X")
Person subject to the notification obligation is not controlled by any natural person or legal entity and does not
control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuer xiii
Full chain of controlled undertakings through which the voting rights and/or the X
financial instruments are effectively held starting with the ultimate controlling natural person or legal entity
(please add additional rows as necessary) xiv
Name xv % of voting rights if it % of voting rights Total of both if it
equals or is higher through financial in- equals or is higher
than the notifiable struments if it equals than the notifiable
threshold or is higher than the threshold
notifiable threshold
PUBLIC INVESTMENT 13.998% 13.998%
CORPORATION SOC
LIMITED
10. In case of proxy voting, please identify:
Name of the proxy holder N/A
The number and % of voting rights held N/A
The date until which the voting rights will be held N/A
11. Additional information xvi
Place of completion PRETORIA, SOUTH AFRICA
Date of completion 29 June 2023
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
UK Financial adviser and corporate broker
Liberum Capital Limited
Johannesburg
29 June 2023
Date: 29-06-2023 04:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Chief Financial Officer’s Pre-Close and Trading Statement for the six-months ending 30 June 2023
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
(‘Thungela’ or the ‘Company’ and together with its affiliates, the ‘Group’)
Chief Financial Officer’s Pre-Close and Trading Statement
for the six-months ending 30 June 2023
Dear Stakeholder
On the basis of the first five months of 2023, Thungela expects to deliver positive
earnings and cash generation for the six-month period ending 30 June 2023,
notwithstanding a sharp decline in coal prices and continued rail underperformance by
Transnet Freight Rail (TFR).
Seaborne coal prices have receded from record highs in 2022 and have fallen sharply
since the start of the year. Following a milder winter in Europe, coupled with softer gas
prices, European coal and gas stocks continued to be elevated, resulting in the
redirection of coal volumes to Asia. This added significant supply to Asian markets
which also showed signs of weaker demand, especially from China. Russian coal also
continued to flow into the region at discounts. However, LNG prices are now starting to
find support, which could make coal more competitive as a fuel source towards the end
of the year as the European winter approaches. Other short term price support factors
include the impact of coal supply cuts, including lower volumes of low grade South
African export coal and reduced export volumes from western Russia.
By early May 2023, TFR performance had stabilised at approximately 48Mtpa for the
industry following a very weak start to the year. This stability was interrupted by two
derailments in May which resulted in the loss of approximately 300kt in railed volumes
for Thungela. For Thungela to achieve the upper end of our export saleable production
guidance range (i.e. 12.5Mt) we require an industry run rate of 53Mtpa in the second
half of the year. Thungela and the industry continue to work closely with TFR on a series
of on-going interventions aimed at improving rail performance.
Thungela is currently not materially affected by the challenges relating to Eskom’s
inability to provide a consistent supply of electricity, however this could become an area
of concern in the event that we see further deterioration in the supply of electricity.
The following are the key insights into our performance for the year to date 1 and our
expectations for the six-months ending 30 June 2023 (H1 2023):
- The Benchmark coal price2 has averaged USD135.47 per tonne for the year to
date, compared to USD270.87 per tonne for FY 2022.
- Discount to the Benchmark coal price has been approximately 17% for the
year to date, compared to 15% for FY 2022. The average realised export price
for the year to date is USD112.40 per tonne, compared to USD229.21 per tonne
for FY 2022.
- Export saleable production for H1 2023 is expected to be 5.8Mt, in line with the
guidance range of 10.5Mt to 12.5Mt for the full year issued in March 2023, and
5% lower than H1 2022 export saleable production of 6.1Mt.
- FOB cost per export tonne is expected to be R1,230 in H1 2023, compared to
R1,093 per tonne in H1 2022. FOB cost per export tonne excluding royalties for
H1 2023 is expected to be R1,155, in line with the full year guidance range of
R1,047 to R1,180 per tonne. This compares to R927 per tonne for H1 2022. The
increase is primarily attributable to lower production coupled with energy input
price escalation.
- Export equity sales for H1 2023 are expected to be 6.2Mt, compared to 6.5Mt in
H1 2022, a decrease of 5%. This is a result of the forecast rail performance of
6.0Mt in the first half of 2023 coupled with a draw down in port stocks.
- Capital expenditure for H1 2023 is expected to be R0.7 billion. This consists of
R0.4 billion in sustaining capital and R0.3 billion in expansionary capital. Capital
expenditure has historically been weighted towards the second half of the year.
- The Group had a net cash position of R14.0 billion on 31 May 2023. The
Group expects to pay taxes and royalties of approximately R1.0 billion relating to
H1 2023 in June 2023.
- Earnings per share (“EPS”)3 for H1 2023 is expected to be between R17.00
and R23.00, thus between R44.23 and R50.23 lower than the H1 2022 EPS of
R67.23 per share - a decrease of between 66% and 75%.
- Headline earnings per share (“HEPS”)3 for H1 2023 is expected to be between
R17.00 and R23.00, thus between R44.23 and R50.23 lower than the H1 2022
HEPS of R67.23 per share - a decrease of between 66% and 75%.
Thungela has continued to advance its strategic priorities. The board has approved the
Zibulo North Shaft life extension project at a capital cost of R2.4 billion which, together
with the investment in the Elders production replacement project, will underpin the cost
competitiveness of our business into the future. The Group also continues to make
progress on fulfilling the conditions precedent relating to the Ensham acquisition and we
are confident that the transaction will complete within the next three months. The
Ensham operation will further enhance the resilience of our portfolio.
We are focused on controlling the controllables and we are working to eliminate costs
where we have curtailed production as a result of rail underperformance, coupled with
driving productivity where production has not been curtailed. We will also continue to
closely monitor the thermal coal prices and rail performance, the likely trajectory of
improvements and the impact this may have on our future portfolio.
Thungela remains focused on disciplined capital allocation and committed to our stated
dividend policy, which is to target a minimum payout of 30% of adjusted operating free
cash flow4. In this context, the Group’s balance sheet remains robust and together with
the actions we are taking to further bolster the resilience of our business, we are
confident that we will be able to navigate the current headwinds and to continue
delivering superior returns for our shareholders over the long-term.
Deon Smith
Chief Financial Officer
Annexure A: Operational Performance
Table 1: Export saleable production by operation
Export saleable H1 2022 H1 2023 % change
production Actual Forecast5
Mt (a) (b) (b-a)/a
Underground 4.5 4.3 -4%
Zibulo 2.3 2.0 -13%
Greenside 1.2 0.9 -25%
Goedehoop6 1.0 1.4 40%
Opencast 1.6 1.5 -6%
Khwezela 0.6 0.8 33%
Mafube 1.0 0.7 -30%
TOTAL 6.1 5.8 -5%
Table 2: Export sales by segment
Export sales H1 2022 H1 2023 % change
Mt Actual Forecast5
Equity sales 6.5 6.2 -5%
Underground 4.8 4.7 -2%
Opencast 1.7 1.5 -12%
Third party sales 0.0 0.0 -
TOTAL 6.5 6.2 -5%
Footnotes
1. All references in this document to “year to date” refer to the period from
1 January 2023 to 31 May 2023.
2. Benchmark price reference for 6,000kcal/kg thermal coal exported from the
Richards Bay Coal Terminal.
3. Expected EPS and HEPS for H1 2023 is based on a WANOS of approximately
137.2 million shares. EPS and HEPS for H1 2022 is based on a WANOS of
approximately 133.3 million shares. The lower end of the forecast EPS and
HEPS ranges are calculated at an average exchange rate of USD:ZAR R18.00
for the month of June 2023.
4. Adjusted operating free cash flow is net cash flows from operating activities less
sustaining capex.
5. Based on the latest available management forecasts. Final figures may differ by
± 5%.
6. Export saleable production for Goedehoop includes approximately 300kt
attributable to the Nasonti operation.
Review of Pre-Close and Trading Statement
The information in this Pre-Close and Trading Statement is the responsibility of the
directors of Thungela and has not been reviewed or reported on by the Group’s
independent external auditors.
The Group expects to release its interim results on or about 21 August 2023.
Investor Call Details
A conference call and audio webinar relating to the details of this announcement will be
held at 11:00 SAST on Monday 12 June 2023. A recording of the audio webinar will be
made available on the Thungela website from 15:00 SAST on the same date.
Conference Call registration:
https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNum
ber=8399487&linkSecurityString=1556933ae1
Audio webinar registration:
https://services.themediaframe.com/links/thungela10044564.html
Disclaimer
This document includes forward-looking statements. All statements other than
statements of historical facts included in this document, 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 Reserve and Resource positions), are, or may be deemed to be, forward-
looking statements. 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. The Group assumes no responsibility to update forward-
looking statements in this announcement except as may be required by law.
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.
Investor Relations
Ryan Africa
Email: ryan.africa@thungela.com
Media Contacts
Tarryn Genis
Email: tarryn.genis@thungela.com
UK Financial adviser and corporate broker
Liberum Capital Limited
Tel: +44 20 3100 2000
Sponsor
Rand Merchant Bank
(a division of FirstRand Bank Limited)
Rosebank
12 June 2023
Date: 12-06-2023 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Dealings in securities on behalf of executive directors to settle tax obligations arising from the vesting of awards
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')
DEALINGS IN SECURITIES ON BEHALF OF EXECUTIVE DIRECTORS TO SETTLE TAX
OBLIGATIONS ARISING FROM THE VESTING OF AWARDS
Shareholders are advised of the following dealings on behalf of Thungela executive directors
pursuant to the vesting, on 4 June 2023, of the final 50% of the milestone awards granted and
accepted in 2021:
Chief Executive Officer: J Ndlovu
Date of transaction: 6 June 2023
Nature of transaction: On market disposal of shares that have vested in respect
of the 2021 milestone award to settle tax obligations
arising from the vesting
Class of securities: Ordinary shares
Number of securities: 202,424
Sale price per share: R130.50
Transaction value: R26,416,332
Nature of interest: Direct beneficial
Chief Financial Officer: GF Smith
Date of transaction: 6 June 2023
Nature of transaction: On market disposal of shares that have vested in respect
of the 2021 milestone award to settle tax obligations
arising from the vesting
Class of securities: Ordinary shares
Number of securities: 101,212
Sale price per share: R130.50
Transaction value: R13,208,166
Nature of interest: Direct beneficial
This is the final vesting of the milestone awards that were granted in 2021.
*Sale price per share is based on a 2-day VWAP ended 6 June 2023 of a Thungela Resources
share. The highest and lowest prices traded for Thungela Resources shares over each day were
as follows:
Date Highest price per share Lowest price per share
5 June 2023 135.00 128.18
6 June 2023 133.78 129.23
Clearance to deal in terms of the JSE Listings Requirements was obtained.
Rosebank
8 June 2023
UK Financial adviser and corporate broker
Liberum Capital Limited
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
Notification of Dealing Forms
1 Details of the person discharging managerial responsibilities / person closely
associated
a) Name July Ndlovu
2 Reason for the notification
a) Position/status PDMR – Chief Executive Officer
b) Initial notification Initial notification
/Amendment
3 Details of the issuer, emission allowance market participant, auction platform,
auctioneer or auction monitor
a) Name Thungela Resources Limited
b) LEI 213800EGYK3BN3SRIF27
4 Details of the transaction(s): section to be repeated for (i) each type of
instrument; (ii) each type of transaction; (iii) each date; and (iv) each place
where transactions have been conducted
a) Description of the financial Ordinary shares of no par value
instrument, type of
instrument
Identification code ISIN: ZAE000296554
b) Nature of the transaction On market disposal of shares that have vested in
respect of the 2021 milestone award to settle tax
obligations arising from the vesting
c) Price(s) and volume(s)
Price(s) Volume(s)
R130.50 202,424
d) Aggregated information
- Aggregated volume 202,424
- Price R26,416,332
e) Date of the transaction 6 June 2023
f) Place of the transaction On market
1 Details of the person discharging managerial responsibilities / person closely
associated
a) Name Deon Smith
2 Reason for the notification
a) Position/status PDMR – Chief Financial Officer
b) Initial notification Initial notification
/Amendment
3 Details of the issuer, emission allowance market participant, auction platform,
auctioneer or auction monitor
a) Name Thungela Resources Limited
b) LEI 213800EGYK3BN3SRIF27
4 Details of the transaction(s): section to be repeated for (i) each type of
instrument; (ii) each type of transaction; (iii) each date; and (iv) each place
where transactions have been conducted
a) Description of the financial Ordinary shares of no par value
instrument, type of
instrument
Identification code ISIN: ZAE000296554
b) Nature of the transaction On market disposal of shares that have vested in
respect of the 2021 milestone award to settle tax
obligations arising from the vesting
c) Price(s) and volume(s)
Price(s) Volume(s)
R130.50 101,212
d) Aggregated information
- Aggregated volume 101,212
- Price R13,208,166
e) Date of the transaction 6 June 2023
f) Place of the transaction On market
Date: 08-06-2023 11:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Dealing in securities by a director
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
(‘Company’ or ‘Thungela Resources’)
DEALING IN SECURITIES BY A DIRECTOR
In compliance with paragraphs 3.63 to 3.74 of the Listings Requirements of the JSE Limited, the following
information relating to the dealing in securities by a director of Thungela Resources is disclosed:
Director : Sango Siviwe Ntsaluba
Company : Thungela Resources
Date of transaction : 6 June 2023
Class of securities : Thungela Resources ordinary shares
Nature of transaction : On-market acquisition of ordinary shares
Number of securities : 768
Purchase price per share : 13039 cents
Total value of transaction : R100 139.52
Nature of interest : Direct, beneficial
Clearance obtained : Yes
7 June 2023
Rosebank
UK Financial adviser and corporate broker
Liberum Capital Limited
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
In compliance with article 19(3) of the Market Abuse Regulation (MAR), we hereby provide the following
information regarding the dealing in securities:
1 Details of the person discharging managerial responsibilities / person closely associated
a) Name Sango Siviwe Ntsaluba
2 Reason for the notification
a) Position/status PDMR – Non Executive Director
b) Initial notification /Amendment Initial notification
3 Details of the issuer, emission allowance market participant, auction platform,
auctioneer or auction monitor
a) Name Thungela Resources Limited
b) LEI 213800EGYK3BN3SRIF27
4 Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii)
each type of transaction; (iii) each date; and (iv) each place where transactions have been
conducted
a) Description of the financial Ordinary shares of no par value
instrument, type of instrument
Identification code ISIN: ZAE000296554
b) Nature of the transaction On-market acquisition of ordinary shares
c) Price(s) and volume(s)
Price(s) Volume(s)
R130.39 768
d) Aggregated information
- Aggregated volume 768
- Price R100 139.52
e) Date of the transaction 6 June 2023
f) Place of the transaction On market
Date: 07-06-2023 12:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Head Office: 25 Bath Avenue, Rosebank
Email: ryan.africa@thungela.com
Tel: +27 (0) 11 638 9363
