Thungela Resources Limited · JSE:TGA

Thungela Resources — H1 2023 Earnings Presentation

22 slides from Thungela Resources's earnings presentation, Jun 30, 2023

  1. Slide 1: 2023 Interim Results

    [OFFICIAL] 2023 Interim Results Presentation for the six months ended 30 June 2023

  2. Slide 2: Cautionary Statement

    [OFFICIAL] CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared by Thungela Resources Limited (“Thungela”) and comprises the written materials/slides for a presentation concerning Thungela and its affiliates (together, the "Group"). By attending this presentation and/or reviewing the

  3. Slide 3: Our Purpose

    OuR PURPOSE create value together thingela

  4. Slide 4: 2023 H1 Highlights: Resilient Performance Amid Challenging Market Conditions

    [OFFICIAL] 2023 H1 HIGHLIGHTS: RESILIENT PERFORMANCE AMID CHALLENGING MARKET CONDITIONS SAFETY OPERATING PERFORMANCE FINANCIAL PERFORMANCE Total Recordable Case Export saleable production Profit for the period Frequency Rate 6.1Mt (H1 2022: 6.1Mt) R3.0 billion (H1 2022: R9.6 billion) 1.33 (H1 2022:

  5. Slide 5: Executing on Our Strategy

    [OFFICIAL] EXECUTING ON OUR STRATEGY DRIVING MAXIMISING VALUE FROM CREATING FUTURE OPTIMISING CAPITAL OUR ESG ASPIRATIONS EXISTING ASSETS DIVERSIFICATION OPTIONS ALLOCATION Sisonke and Nkulo trusts Approval of Acquisition of controlling Reaffirmed commitment to contribution of interest in dividend p

  6. Slide 6: Safety

    [OFFICIAL] SAFETY KEY SAFETY METRICS SAFETY REMAINS OUR FIRST VALUE  Mr Breeze Mahlangu passed away in February 42 following an accident in December 2022  We continue our relentless drive to eliminate 34 fatalities through: 1.85 30 – Maintaining our basics – Work management 25 25 1.48 1.51 1.41 –

  7. Slide 7: TFR Performance

    [OFFICIAL] TFR PERFORMANCE TFR1 ANNUAL VOLUMES AND ANNUALISED AVERAGE RUN RATES (Mt per annum) TFR PERFORMANCE REMAINS SIGNIFICANT CHALLENGE  Annualised rate of 48Mtpa in H1 2023 73.0 71.1 70.1  Q1 was particularly poor, with a limited recovery in Q2, notwithstanding two derailments in May 58.1 

  8. Slide 8: Resilience and Readiness

    [OFFICIAL] RESILIENCE AND READINESS RESILIENCE PREMISED ON COMPETITIVENESS OF PORTFOLIO READINESS BY DELIVERING OUR STRATEGIC PRIORITIES RAIL PERFORMANCE  Strategic priorities remain unchanged  Removed three underground sections in response to rail  Continue to drive our ESG aspirations constrain

  9. Slide 9: The Numbers

    [OFFICIAL] The Numbers Deon Smith | Chief Financial Officer

  10. Slide 10: H1 2023 Financial and Operational Highlights

    [OFFICIAL] H1 2023 FINANCIAL AND OPERATIONAL HIGHLIGHTS NET PROFIT FOR ADJUSTED EARNINGS NET CASH THE PERIOD EBITDA PER SHARE R3.0 billion R4.4 billion R22.45 R13.6 billion (H1 2022: R9.6 billion) (H1 2022: R16.7 billion) (H1 2022: R67.23) (H1 2022: R14.8 billion) EXPORT SALEABLE FOB COST / INTERIM

  11. Slide 11: Benchmark and Realised Prices

    [OFFICIAL] BENCHMARK AND REALISED PRICES BENCHMARK AND REALISED THERMAL COAL PRICES (R/t) EXPORT MARKETS R/t  Global economic pressures and high gas and coal 6,000 stocks in key demand regions placed downward pressure on coal prices 5,500  Milder winter in Europe, coupled with redirection of 5,000

  12. Slide 12: Export Saleable Production and Export Sales

    [OFFICIAL] EXPORT SALEABLE PRODUCTION AND EXPORT SALES INVENTORY MOVEMENT (Mt) CONTINUED HIGH ON-MINE STOCKS DUE TO RAIL PERFORMANCE  Export saleable production of 6.1Mt in H1 2023 (H1 2022: 6.1Mt)  6.2Mt railed to RBCT in H1 2023 (H1 2022: 6.5Mt)  Export sales of 6.3Mt in H1 2023 (H1 2022: 6.5Mt

  13. Slide 13: FOB Cost per Export Tonne

    [OFFICIAL] FOB COST PER EXPORT TONNE FOB COST PER EXPORT TONNE (R/t) - H1 2022 vs H1 2023 COST PERFORMANCE (H1 2023 on H1 2022)  Significant inflationary pressure following increase in 1,166 electricity, explosives and rail costs in H2 2022 1,139 27 23 10 1,093 42  Production curtailment due to ra

  14. Slide 14: Adjusted EBITDA

    [OFFICIAL] ADJUSTED EBITDA ADJUSTED EBITDA1 (R billion) DECREASE IN ADJUSTED EBITDA DRIVEN BY LOWER PRICES 16.7 10.3  Average realised prices decreased by 48% compared to H1 2022  The ZAR weakened opposite the USD – from R15.41 per dollar in H1 2022 to R18.22 per dollar in H1 2023  The impact of

  15. Slide 15: Capital Expenditure

    [OFFICIAL] CAPITAL EXPENDITURE CAPITAL EXPENDITURE (R billion) CAPITAL EXPENDITURE  Capex spend of R893 million up to 30 June 2023 2.0 – 2.4 2.9 – 3.3 – R339 million spent on stay-in-business capital – R105 million spent on stripping and development 0.8 – 1.0 activities 1.1 – 1.3 – R449 million exp

  16. Slide 16: Net Cash

    [OFFICIAL] NET CASH RECONCILIATION OF NET CASH (R billion) MAINTAINED ROBUST NET CASH POSITION  Paid 2022 final dividend in H1 2023 14.7  Cash generated from operations impacted by lower 0.7 0.9 0.2 13.6 realised prices  Working capital unwind driven by reduction in trade 5.5 4.8 receivables as a

  17. Slide 17: Commitment to Dividend Policy

    [OFFICIAL] COMMITMENT TO DIVIDEND POLICY DIVIDEND AND CAPITAL ALLOCATION (R billion) REAFFIRMING THE DIVIDEND POLICY  Cash reserved for key approved projects and 13.6 acquisition: 1.5 – Investing through the cycle in Elders and Zibulo North Shaft will enhance the portfolio and extend 2.3 life of ou

  18. Slide 18: Returns to Shareholders

    [OFFICIAL] RETURNS TO SHAREHOLDERS NET CASH (R billion) LIQUIDITY CONSIDERATIONS AND DIVIDEND 13.6 13.6  Dividend policy is to target a minimum payout of 30% of adjusted operating free cash flow Ensham 3.4 3.4  H1 2023 dividend of R10 represents payout of 33%  Additional 4% to creating shared val

  19. Slide 19: Outlook for FY2023

    [OFFICIAL] OUTLOOK FOR FY20231 EXPORT SALEABLE PRODUCTION (Mt) FOB COST PER EXPORT TONNE (R/t) CAPITAL EXPENDITURE (R billion) Guidance Guidance Guidance 1,131 – 1,264 1,170 – 1,250 84 50 1,079 2.9 – 3.3 150 1.9 1.6 – 1.8 0.2 13.1 10.5 – 12.5 11.5 – 12.5 929 1,047 – 1,180 1,120 – 1,200 1.7 1.3 – 1.5

  20. Slide 20: Ensham Transaction Update

    [OFFICIAL] ENSHAM TRANSACTION UPDATE COMPLETION EXPECTED 31 AUGUST 2023  Thungela will assume operational control of Ensham from 1 September 2023  Comprehensive integration roadmap in place to ensure alignment on priorities and governance  Ensham will be proportionately consolidated from completi

  21. Slide 21: Conclusion

    [OFFICIAL] CONCLUSION Operating a fatality free Solid performance in first Balanced capital business half of 2023 allocation Ensure that everyone returns home Notwithstanding substantially softer R1.4 billon interim dividend (33% of safely every day prices and weaker rail performance adjusted operat

  22. Slide 22: Thank you

    [OFFICIAL] Thank you 22

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