11th Feb 2022 10:28
(Alliance News) - Thungela Resources Ltd shares rallied on Friday after the coal miner said it expects to swing to annual earnings following a surge in coal prices in 2021.
Thungela shares were up 9.6% to 578.25 pence each in London on Friday, and gained 10% to ZAR118.44 each in Johannesburg.
The Anglo American spin-off, which has operations in South Africa, expects 2021 earnings per share between ZAR60.32 and ZAR61.27, bouncing back from a ZAR5.31 loss in 2020.
Headline EPS are expected to be between ZAR65.81 and ZAR66.76, returning from a ZAR5.31 loss.
This came on the back of stronger coal prices in the year as a global energy crunch caused prices to rocket to a high of USD274.50 per tonne in October from USD69.00 at the start of 2021.
Coal prices were still sitting at elevated levels, fetching USD189.00 a tonne on Friday around midday.
Thungela said: "Earnings increased as a result of the increase in revenue driven by the strong price environment for thermal coal in 2021 and higher realised prices achieved by the group. This has been accompanied by improved cost efficiency across our operations, positively impacting the profitability of the group."
Full annual results are expected on March 22.
By Greg Roxburgh; [email protected]
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