22nd Mar 2022 08:44
(Alliance News) - Thungela Resources Ltd on Tuesday hailed its maiden full-year financial performance as "exceptional", the coal miner returning to the black despite rail constraints in South Africa and the Covid-19 pandemic.
The Rosebank-based coal miner reported its first set of full-year financial results as a publicly listed company since Anglo American PLC spun it off last year and listed it on the Johannesburg Stock Exchange and the London Stock Exchange in June.
Thungela, which has operations in South Africa, swung to a pretax profit of ZAR7.51 billion in 2021 from a loss of ZAR438 million in 2020.
Revenue surged to ZAR26.28 billion from ZAR3.75 billion, due in large part to robust coal prices, which offset a slight decline production.
Annual export coal production fell by 9.0% to 15.0 million tonnes from 16.5 million tonnes, due to issues at state-run logistics firm Transnet SOC Ltd, whose rail operation was disrupted in part by cyber attack and the civil unrest last year.
Free on board cost per export tonne of coal of ZAR830, represents an improvement from ZAR812.
Thungela declared maiden cash dividend of ZAR18.00.
Adjusted earnings before interest, tax, depreciation and amortisation soared to ZAR9.97 billion from ZAR286.0 million.
"I am delighted to report Thungela's first set of full-year results as a publicly listed company since its debut on the Johannesburg Stock Exchange and the London Stock Exchange on 7 June 2021," said Chief Executive July Ndlovu.
"Our exceptional performance shows the magnitude of what we have been able to accomplish since demerger."
Looking ahead, Thungela said it looks set to benefit from continued strong coal fundamentals in 2022 and beyond. Continued robust demand, coupled with shrinking global thermal coal supply, has driven thermal coal prices to record levels.
Export coal production is expected to range between 14 million tonnes and 15 million tonnes this year, and rise above 16 million tonnes in 2023 and 2024.
FOB cost per export tonne is likely to range from ZAR870 to ZAR890 this year. In 2023 and 2024, costs are expected to average ZAR870.
"Group operational outlook updated to reflect poor Transnet Freight Rail performance and the ongoing uncertainty regarding the expected recovery thereof, as well as our continued focus to improve productivity and cost management in an environment marked by increased inflationary pressures," the company said.
Thungela said it remains committed to working with Transnet's rail unit, the South African government, and the industry to resolve the rail issues experienced in 2021 and at the start of 2022.
"We remain cautiously optimistic that the challenges are transient. We have however planned our operational performance on a gradual, rather than an immediate, recovery in rail performance," the coal miner said.
Thungela shares were down 4.5% to 819.33 pence each in London on Tuesday, but were up 1.3% to ZAR161.12 each in Johannesburg.
By Artwell Dlamini; [email protected]
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