THUNGELA Resources expects to report sharply higher earnings for the six months to 30 June 2026, supported by a non-cash profit on the sale of the Kleinkopje mining right despite continued volatility in global coal markets.
The coal producer said earnings per share (EPS) are expected to be between R10.75 and R11.10, compared with R1.93 in the corresponding period last year. Earnings attributable to shareholders are forecast at between R1.3bn and R1.4bn.
Headline earnings per share (HEPS), which exclude certain one-off items, are expected to increase to between R4.60 and R4.95 from R1.92 a year earlier. Headline earnings attributable to shareholders are forecast at between R580m and R630m.
Thungela said the results reflected ongoing volatile market conditions as well as a non-cash profit of about R1bn recognised on the disposal of the Kleinkopje mining right. The gain is excluded from the calculation of headline earnings.
Earlier this year, Thungela agreed to dispose of the Kleinkopje mining right at its Khwezela Colliery and placed the Isibonelo mine on care and maintenance in December as part of efforts to optimise its portfolio.
Coal markets remained volatile during the period as geopolitical tensions in the Middle East continued to disrupt global energy markets.
Supply disruptions in oil and liquefied natural gas (LNG) markets provided some support for thermal coal prices, although higher freight rates and war-risk insurance increased costs for seaborne exporters.
The company also benefited from stronger export sales, supported by improved logistics performance.
Higher volumes were railed to Richards Bay as Transnet Freight Rail improved its operational performance, while Thungela also utilised unused rail allocation from other coal exporters to move additional product to port.
Firmer seaborne coal prices and stronger export volumes helped offset some of the pressure from volatile market conditions.
Based on its guidance, EPS is expected to increase by between 457% and 475% compared with the first half of 2025, while HEPS is forecast to rise by between 140% and 158%.
Thungela said key judgements affecting the expected earnings ranges are still being finalised and any changes would be communicated to shareholders if necessary.
The company is scheduled to publish its interim financial results on 17 August 2026.
