Thungela sets higher coal output target as it seeks more assets

Mar18,2024



South Africa'S Thungela Resources It said on Monday it was seeking to buy more coal assets after raising its production outlook for the fossil fuel following the acquisition of an Australian mine last year.
Thungela, which ships thermal coal to be burned in power stations, bought ensham mine As part of a strategy to shift its sources away from home, where companies are struggling to export fuel due to insufficient rail capacity.
While it wants to extract maximum value from the new mine, Thungela, which was spun off from Anglo American in 2021, also wants to buy more coal assets, CEO July Ndlovu said.
“We are looking for the right quality properties, properties that are priced appropriately, that we can add value to, but we also have to be diligent in terms of what we are looking for,” Ndlovu told a media conference.
The Johannesburg-based miner said on Monday its net profit fell 73% to 4.97 billion rand ($264.81 million) in the year ending December 2023, down from about 18 billion rand the previous year. coal prices and continuously rail barriers in South Africa.
It proposed a share buyback of $27 million and declared a final dividend of 10 rand per share. Thungela shares were up 5.11% at 1002 GMT, with the broader JSE All Share index down 0.18%.
Production at the Ensham mine is projected to increase from 2.9 million tonnes last year to about 4 million tonnes by 2026. Ndlovu said this could help Thungela boost group production to about 15 million tonnes at a time when some mines in South Africa are gradually running out of commercially viable ore.
Thungela said production from South Africa is expected to remain stable at about 11 million tonnes due to the closure of some mines. Ndlovu said the company shipped about 15 million tonnes of fuel in 2021, but does not expect its South African production to rise to those levels again.



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