Thungela Resources, a South African coal miner, has announced revised production and cost guidance for the full year after experiencing a drop in profitability and revenue during the first half of the year.
Narrowed Production Estimates
The company now expects its export saleable production to be between 11.5 million and 12.5 million metric tons, a narrower range compared to the previous estimate of 10.5 million-12.5 million tons. To achieve the lower end of this estimate, Thungela Resources will need to maintain an annualized industry run-rate of 47 million tons per year in the second half.
Decline in Profit and Revenue
Thungela Resources reported a 69% decrease in net profit for the first half, amounting to ZAR 3.0 million ($157,921). This decline was primarily due to a significant drop in thermal coal prices, which resulted in a 45% decrease in revenue, reaching ZAR 14.35 million.
Revised Cost Guidance
The company has also adjusted its cost guidance, with the cost per export ton (including royalties) now anticipated to be in the range of ZAR 1,170-ZAR 1,250. This revision reflects the impact of reducing underground sections earlier this year. The previous cost range was ZAR 1,131-ZAR 1,264.
Thungela Resources has declared an interim dividend of ZAR 10.0 per share, marking a decrease from the previous year's dividend of ZAR 60.0 per share.