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JOHANNESBURG - Coal producer Thungela Resources reported steady production for the first half of 2025 despite facing challenges from softer coal prices and weather disruptions, according to a pre-close statement released Thursday.
The company expects South African export production to reach approximately 6.4 million tonnes for the first half of 2025, slightly higher than the 6.2 million tonnes produced in the same period last year. However, production at its Australian Ensham mine is forecast to drop to 1.6 million tonnes from 2.1 million tonnes due to challenging geological conditions.
Coal prices have weakened significantly in 2025, with the Richards Bay Benchmark averaging $91.74 per tonne year-to-date, down from $105.30 per tonne in 2024. The Newcastle Benchmark has seen a steeper decline, averaging $101.71 per tonne compared to $134.85 per tonne last year.
Thungela’s Chief Financial Officer Deon Smith noted that rail performance has improved, with Transnet Freight Rail showing a 7% increase in coal transportation compared to full-year 2024 figures.
The company completed a share buyback worth R328 million ($17.8 million) announced in March and distributed R1.4 billion ($76 million) in dividends during the first half. Net cash is expected to range between R5.9 billion and R6.1 billion ($320-331 million) at the end of June.
Thungela has initiated restructuring at its Goedehoop and Isibonelo mines as they approach the end of their operational lives, with details to be provided in the upcoming interim results scheduled for August 18.
The company maintained its full-year production guidance despite costs in the first half running slightly above the upper end of its forecast range, citing expected improvements in the second half of the year.
Based on a company press release, Thungela has operated for 27 consecutive months without a fatality while continuing work on its Elders project and Zibulo North Shaft development.
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