1st Aug 2022 08:27
(Alliance News) - Thungela Resources Ltd expects its first-half earnings to surge as a result of robust international coal prices.
The Rosebank-based coal miner sees earnings per share soaring to between ZAR66.85 and ZAR67.45 for six months to June 30, from ZAR3.13 in the prior year.
Headline earnings per share is likely to multiply to be between ZAR66.85 and ZAR67.45, compared to ZAR3.05 previously.
Earnings increased as a result of the increase in revenue driven by the strong benchmark coal price for thermal coal and higher realised prices achieved in the first half of 2022.
The Newcastle thermal coal average benchmark price stands near USD386 per tonne currently, multiplied from USD120 on January 3.
But earnings noted that earnings were dampened by increased operating costs, which had been driven by increased royalty charges and external factors, as well as global inflationary pressures.
Thungela said its interim performance took into account the internal restructuring following its demerger from parent Anglo American PLC in June last year.
The restructuring process was undertaken to separate the South African thermal coal operations and the various non-thermal coal operations within Anglo American in order to prepare the group for the demerger.
Thungela expects to release its interim financial results August 15.
Its shares were 2.9% higher at 1,490.00 pence each in London on Monday morning. In Johannesburg, the stock rose by 1.2% to ZAR294.52.
By Artwell Dlamini; [email protected]
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