Thungela Resources Limited has reported a strong interim result for the six months ending June 30 after its successful listing on the Johannesburg Stock Exchange and London Stock Exchange on June 7.
In a statement, the company said it generated an operating profit of R990 million ($66.78 million) for the period under review.
Furthermore, it generated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of nearly R1.9 billion ($128.1 million), while recording a strong net cash position of R3 billion ($20.226 million).
Thungela delivered earnings per share of 313 cents ($0.21) and headline earnings per share of 305 cents ($0.21).
“Coal prices were supported by supply constraints from South Africa, Colombia and Australia, with the latter still facing an ongoing ban on imports into China,” Thungela CEO July Ndlovu said.
The company also noted that its performance was boosted by the recent recovery of global thermal coal prices and active steps taken to upgrade its portfolio. Moreover, strong demand from South Asia, including India, Pakistan, Sri Lanka and Vietnam, also triggered a boost in its H1’2021 financial report
Thungela is a leading pure-play producer and exporter of high-quality, low-cost thermal coal in South Africa. It is a spin-off of Anglo American, the London-based multinational mining company reputed as the world’s largest producer of platinum, providing 40 percent of global output.
In April 2021, Anglo American announced the demerger of Thungela, which will own a series of significant South African thermal coal assets to eliminate the risk of clean-up liabilities.
Ndlovu, who joined Anglo American in 2001 as a business manager of the Polokwane Smelter, serves as Thungela’s CEO. Earlier still, Ndlovu held leadership positions in the Southern African mining sector, including serving as CEO of Coal South Africa in 2016. He also held senior managerial positions in Anglo American subsidiaries.