TIDMTGA
RNS Number : 5239I
Thungela Resources Limited
13 August 2021
THUNGELA RESOURCES LIMITED (Incorporated in the Republic of
South Africa)
Registration number: 2021/303811/06
JSE Share Code: TGA
LSE Share Code: TGA
ISIN: ZAE000296554
Tax number: 9111917259
('Thungela' or the 'Group' or the 'Company')
REVIEWED INTERIM RESULTS FOR THE SIX MONTHSED 30 JUNE 2021
KEY FEATURES
-- Safety - Thungela remains committed to achieving a
fatality-free business. It is with sadness that we report the loss
of Moeketsi Mabatla at our Goedehoop colliery on 23 June 2021
-- Successful transition to a standalone, JSE and LSE listed business from 7 June 2021
-- Comprehensive ongoing response to the COVID-19 pandemic
-- Operating profit of R990 million and Adjusted EBITDA of
R1,888 million for the six months ended 30 June 2021
-- Robust financial position with cash of R3,135 million (Net
cash of R3,043 million) supported by strong cash generation since
the Group achieved economic and operational independence
-- Confirmation of full year production and FOB cost per export tonne outlook
-- Disciplined capital allocation - set to achieve low end of
full year capital expenditure guidance range and Thungela remains
committed to its stated dividend policy
KEY FINANCIAL INFORMATION
Rand million (unless otherwise stated) 30 June 2021 30 June 2020 % change
Revenue 10,046 1,657 506%
------------- ------------- ---------
Operating profit 990 52 1,803%
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Adjusted EBITDA 1,888 247 664%
------------- ------------- ---------
Profit / (loss) for the reporting
period 351 (122)
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Earnings / (loss) per share (cents) 313 (193)
------------- ------------- ---------
Headline earnings / (loss) per share
(cents) 305 (193)
------------- ------------- ---------
Refer to comparability of results detailed below for context as
to the significant movements reflected.
MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
July Ndlovu, Chief Executive Officer of Thungela, commented:
" Thungela is pleased to announce a significant increase in
interim earnings as we report for the first time as an independent,
focused coal export business. Our operating profit of R990 million
and Adjusted EBITDA of R1,888 million demonstrate our ability to
operate profitably notwithstanding the ongoing pandemic. Our
listing on the Johannesburg Stock Exchange and London Stock
Exchange on 7 June 2021 was a significant milestone for our new
business and for the shareholders and partners who have embarked on
this journey with us .
We mourn the sad passing of our colleague and friend Moeketsi
Mabatla at Goedehoop Colliery on 23 June 2021. We have lost 12 of
our colleagues to COVID-19, and many of us have also lost family
and friends to this pandemic. The loss of these lives casts a
shadow over the start of our journey and our heartfelt condolences
go out to all who have lost loved ones.
After a month of operating as a standalone business, we are cash
positive and well positioned to deliver on our targets. We are
pleased to note the recent recovery of global thermal coal prices.
These are reflective of the continued demand for high quality coal
amid challenging supply dynamics across many regions. Our business
reported an increase in earnings, with earnings per share of 313
cents. The steps we have taken to upgrade our portfolio and our
continued focus on improving productivity and operating costs, will
no doubt stand us in good stead into the future."
COMPARABILITY OF RESULTS
An internal restructuring process (referred to as the 'Internal
Restructure') was undertaken to prepare the Group for the Demerger.
The impact of the Internal Restructure is significant to the
financial and operating results of the Group, given that the
ownership structure reflected only one out of seven operating mines
until 31 December 2020, which is not reflective of the operations
of the Group on a forward-looking basis. The comparatives included
in the condensed consolidated interim financial statements are
therefore not fully reflective of the operations of the Group over
the comparative period. On this basis, the Group has presented a
Pro Forma condensed consolidated interim statement of profit or
loss for the six months ended 30 June 2021 and 30 June 2020 (the
'Pro Forma Financial Information') to reflect what the financial
results may have been, if the Internal Restructure had happened at
the start of the reporting period.
The Pro Forma Financial Information, which is the responsibility
of the Thungela directors, has been prepared to enhance users'
understanding of the condensed consolidated interim financial
statements, based on the timing of the Internal Restructure and the
impact thereof on the comparability of the financial results. The
Alternative Performance Measures presented, Adjusted EBITDA and
Adjusted operating free cash flow, are the responsibility of the
Thungela directors , and have been assessed consistently in each
period presented. The Alternative Performance Measures used by
Thungela are financial and operating measures which the directors
utilise to assess the performance of the Group on an ongoing basis.
Neither the Pro Forma Financial Information nor the Alternative
Performance Measures haves been reported on by the Group's
independent auditor. Further details of the Alternative Performance
Measures and Pro Forma Financial Information have been set out in
Annexure 1 and Annexure 3 respectively of the condensed
consolidated interim financial statements for the six months ended
30 June 2021.
A detailed commentary on the comparability of results is
available in the reviewed condensed consolidated interim financial
statements for the six months ended 30 June 2021 which can be
downloaded from the Thungela website at
https://www.thungela.com/investors/results and at
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/TGAE/Int2021.pdf
OUTLOOK
Thungela is committed to running a fatality-free business, and
we will continue to make every effort to ensure that everyone
returns home safely every day. We confirm the guidance for export
saleable production of between 15Mt and 16Mt and flat FOB cost per
export tonne of R830 for the full year.
As we begin to review the appropriate level of expenditure with
a Thungela lens, capital expenditure is now expected to be on the
low end of the range (R2,600 million to R3,000 million) previously
provided for the full year.
With continued strong prices as well as improved performance by
TFR through the remainder of the year, the Group is likely to
achieve positive Adjusted operating free cash flow for the
remainder of 2021. Our strong balance sheet coupled with the above
paves the way for Thungela to consider the declaration of a maiden
dividend at the annual results for 2021, in line with Thungela's
stated dividend policy of a minimum pay-out of 30% of Adjusted
operating free cash flow.
FORWARD-LOOKING STATEMENTS
This document includes forward-looking statements. All
statements other than statements of historical facts included in
this document, including, without limitation, those regarding
Thungela's financial position, business, acquisition and divestment
strategy, dividend policy, plans and objectives of management for
future operations (including development plans and objectives
relating to Thungela's products, production forecasts and Reserve
and Resource positions) and environmental, social and corporate
governance goals and aspirations, are forward-looking statements.
By their nature, such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Thungela or industry
results to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements.
The Group assumes no responsibility to update forward-looking
statements in this announcement except as required by law.
Investors are cautioned not to rely on these forward-looking
statements and are encouraged to read the full reviewed condensed
consolidated interim financial statements for the six months ended
30 June 2021, which are available on
https://www.thungela.com/investors/results
SHORT FORM ANNOUNCEMENT
This short form announcement, including the forward-looking
statements, is the responsibility of the directors of the Group.
Shareholders are advised that this short form announcement
represents a summary of the information contained in the full
results announcement and does not contain full details.
Any investment decisions by investors and/or shareholders should
be based on a consideration of the full results announcement as a
whole and investors and/or shareholders are encouraged to review
the full results announcement, which is available on the Thungela
website: https://www.thungela.com/investors/results and at
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/TGAE/Int2021.pdf
The reviewed condensed consolidated interim financial statements
for the six months ended 30 June 2021 were reviewed by
PricewaterhouseCoopers Incorporated who have issued an unmodified
review opinion. This short form announcement has not been audited
or reviewed by the Group's independent auditor. Any reference to
future financial performance included in this announcement has not
been separately reported on by the Group's independent auditor.
Copies of the full announcement may be requested by contacting
Thungela Investor Relations by email at ryan.africa@thungela.com
and are available for inspection at the Company's registered office
at no charge, by appointment, subject to the prevailing
restrictions.
On behalf of the Board of Directors
Sango Ntsaluba, Chairperson
July Ndlovu, Chief Executive Officer
11 August 2021
Johannesburg (South Africa)
Date of SENS release: 13 August 2021
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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END
IR SFAEFEEFSESA
(END) Dow Jones Newswires
August 13, 2021 02:00 ET (06:00 GMT)
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