13th Jun 2022 09:58
(Alliance News) - Thungela Resources Ltd on Monday predicted a maiden interim dividend on the back of strong coal prices and robust earnings, which have helped blunt rail constraints in South Africa.
The Rosebank-based coal miner said on Monday it expects earnings per share to rise to ZAR54.87 for the first half to June 30, compared to ZAR3.13 in the prior year.
Headline earnings per share is likely to increase to ZAR54.95 from ZAR3.05.
The company forecasts an interim dividend for six months thanks to continued strong earnings and cash generation from January 1 to May 31, driven primarily by soaring coal prices.
Thungela declared maiden a full-year dividend of ZAR18.00 in 2021. It had listed in June of last year. The coal miner was spun out of Anglo American PLC and then listed on both the London and Johannesburg stock exchanges that month.
The benchmark coal price has averaged USD266 a tonne for the year to date, compared to USD98 in the first half ended June 30, but prices have been extremely volatile with large daily fluctuations in physical prices.
Demand for thermal coal remained firm at the start of the year as global economic activity continued to recover from the Coid-19 pandemic.
"The unfortunate onset of the conflict between Russia and Ukraine further contributed to tightness in supply and resulted in a refocus on energy security in Europe and beyond," the coal producer said.
Export saleable production for the first half is expected to be around 6.1 million tonnes, 14% lower than output of 7.1 million tonnes in the prior year.
The group said state-owned transport utility Transnet SOC Ltd was hampering its export performance.
It said it was closely monitoring its export saleable production guidance in light of the inconsistent rail network.
Thungela expects to achieve the lower end of the export saleable production guidance of 14 million tonnes to 15 million tonnes, from 15.0 million tonnes last year.
It has scheduled to release interim results on or about August 15.
Thungela shares were 6.3% lower at 1,182.00 pence each in London on Monday morning. In Johannesburg, the stock was down 6.5% at ZAR231.26.
By Artwell Dlamini; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Thungela Resources