Key Highlights

  • TNGRF reported first-half 2026 adjusted EBITDA of 1.3 billion rand, up 91 percent year over year, with headline Earnings Per Share rising 467 percent to 10.95 rand.
  • The board declared an interim Cash Dividend of 5.50 rand per share, marking the 10th consecutive dividend paid since the company's 2021 listing.
  • Group export sellable production increased 6 percent to 8.5 million tons, while export Equity sales rose 7 percent to 8.9 million tons, supported by improved South African rail performance.
  • Net cash stood at 6.1 billion rand at the end of June, with an additional 3.2 billion rand in undrawn facilities, as the company maintained full-year production and cost guidance.

Higher Coal Prices and Improved Rail Performance Drive Earnings

Thungela Resources Limited (OTC:TNGRF), a South African thermal coal producer and exporter operating open-pit and underground collieries in Mpumalanga alongside the Ensham mine in Australia, said adjusted EBITDA rose 91 percent as higher benchmark coal prices, increased sales volumes, and lower operating costs offset a stronger South African rand that reduced reported Revenue by approximately 1.7 billion rand. The average Richards Bay benchmark coal price rose 15 percent and the average Newcastle benchmark rose 25 percent in the first half, driven by energy security concerns following the onset of conflict in the Middle East.

Because a strong rand directly reduces the rand value of the company's dollar-denominated export revenue while most operating costs remain locally denominated, the currency's continued strength represents an ongoing Margin headwind that could persist independent of coal price trends, a dynamic management said it does not control.

Rail Improvements Unlock Higher Export Volumes

Improved performance on South Africa's rail network allowed the company to increase export sales to 7.4 million tons, with the North Corridor achieving an annualized run rate of 59.9 million tons, a 5.5 percent improvement compared with 2025 and a level not seen since 2023. Management said this improvement reflects collaboration between industry participants and the national rail operator, including higher locomotive availability and security improvements, achieved without significant Capital Investment from the rail operator.

Because this rail performance improvement has not required material capital spending from the operator, management expressed confidence it can be sustained near current levels in the near term, though the company acknowledged the potential for further upside remains dependent on factors outside its direct control.

Zibulo Transition and Ensham Diversification Support Guidance

Production at the company's Zibulo operation was lower year over year due to underground infrastructure challenges as Mining shifts toward the Zibulo North Shaft, a feature management described as transient and expected to improve in the second half as the operational footprint contracts. In Australia, Ensham delivered a 37 percent production increase, improving free-on-board cost per export ton by 23 percent and demonstrating the value of portfolio diversification. The company maintained full-year guidance across both operations, with management citing confidence that second-half production will exceed the pace seen in prior comparable periods.

Conclusion

Thungela's improved first-half earnings and increased dividend reflect the benefit of higher coal prices and a stronger operational execution in both South Africa and Australia, even as a resilient South African rand continues to erode the translation benefit the company has traditionally enjoyed from dollar-denominated exports. The pace of the Zibulo North Shaft transition and the durability of recent rail performance gains will likely be the key operational variables shaping second-half results, while global coal price direction remains tied to geopolitical developments the company said it cannot predict with confidence.