THUNGELA Resources has warned it expects to report a loss for the year to end-December 2025, blaming weaker coal markets and adverse currency movements for a sharp deterioration in earnings, said Business Day on Monday.
In a trading statement the miner forecast a headline loss per share of between R5.50 and R7.50, against headline earnings of R25.59 per share in 2024. The headline loss attributable to shareholders is expected to total between R700m and R1bn.
Thungela said the results were primarily driven by R8.8bn in non-cash impairments on property, plant and equipment, triggered by lower seaborne thermal coal prices and the relative strength of the rand and Australian dollar against the US dollar.
The company also declined to recognise deferred tax assets of R1.1bn, representing potential future tax benefits, which further reduced reported earnings.
Seaborne coal prices fell sharply in 2025, with the Richards Bay benchmark declining 15% year on year and the Newcastle benchmark dropping 22%.
The slide reflected weaker import demand from key markets in Asia and Europe, compounded by continued global oversupply.
Higher output from major exporting nations, alongside a shift by some countries towards domestic coal or alternative energy sources, curtailed demand for seaborne supply.
Thungela will publish its final results on 23 March.
