Thungela Resources Limited · JSE:TGA
Thungela Resources — FY2024 Earnings Presentation
25 slides from Thungela Resources's earnings presentation, Mar 17, 2025
Slide 1: Annual Results Presentation
[OFFICIAL] ANNUAL RESULTS PRESENTATION for the year ended 31 December 2024 17 March 2025
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared by Thungela Resources Limited (“Thungela”) and comprises of competitors, activities by courts, regulators and governmental authorities and changes in taxation or safety, the written materials/slides for a presentation concerning Th
Slide 3: 2024 Group Performance
2024 GROUP PERFORMANCE July Ndlovu | Chief executive officer 3
Slide 4: 2024 Group Highlights
2024 GROUP HIGHLIGHTS1 OPERATING TOTAL EXPORT A FATALITY-FREE RECORDABLE CASE SALEABLE BUSINESS FREQUENCY RATE PRODUCTION2 25 months 1.93 (2023: 2.80) 17.7Mt (2023: 13.2Mt) Without a loss of life Historic low in South Africa at 1.07 Up year-on-year and exceeded guidance NET CAPITAL TOTAL SHAREHOLDER
Slide 5: Our Strategic Pillars
OUR 5 STRATEGIC PILLARS MAXIMISING CREATING DRIVING VALUE FROM FUTURE OPTIMISING OUR ESG EXISTING DIVERSIFICATION CAPITAL SAFETY ASPIRATIONS ASSETS OPTIONS ALLOCATION Operate a Employee and Competitiveness Ensham Total dividends fatality-free community trusts1 Productivity improvement Acquisition of
Slide 6: Safety is Our First Value
SAFETY IS OUR FIRST VALUE GROUP TRCFR 25 months fatality-free 2.80 • South Africa – Historic low TRCFR of 1.07, down from 1.40 in 2023 • improved accountability • critical controls review 1.93 • frontline leadership development 1.35 1.41 • Australia – Significant improvement in TRCFR of 13.21, down
Slide 7: South Africa – Rail Performance
SOUTH AFRICA – RAIL PERFORMANCE Transnet Freight Rail annualised run rate (Mt per annum) Rail improvement • 2024 rail performance improved 8.4% 70.1 19% year-on-year • H2 2024 annualised run rate at 58.1 56.2Mtpa - best semester since 2021 56.2 51.9 • Mutual cooperation agreement 50.3 47.9 47.3 rema
Slide 8: Weaker Coal Prices Across Our Markets
WEAKER COAL PRICES ACROSS OUR MARKETS Benchmark and realised thermal coal prices (USD per tonne) South Africa • Richards Bay Benchmark coal price 13% 450 lower year-on-year 400 • Impacted by higher coal and gas 350 stocks and milder winter conditions in 300 the Northern Hemisphere 250 • Discount of
Slide 9: Long-Term Fundamentals of Coal
LONG-TERM FUNDAMENTALS OF COAL Thermal coal supply1 Demand (Mt) • South East Asia - rapidly developing economies need affordable, reliable energy sources 673 681 675 662 653 • Requirement to power artificial 640 612 intelligence boom 578 569 • In India, coal demand expected to reach 537 496 1.5 bill
Slide 10: Financial Review
FINANCIAL REVIEW Deon Smith | Chief financial officer 10
Slide 11: 2024 Group Financial Results
2024 GROUP FINANCIAL RESULTS1 ADJUSTED NET EARNINGS EBITDA PROFITrted PER SHARE R6.3 billion R3.5 billion R26.76 (2023: R8.5 billion) (2023: R5.0 billion) (2023: R37.66) ADJUSTED NET TOTAL SHAREHOLDER OPERATING CASH RETURNS FREE CASH FLOW Reported Dividend per share R13 R3.6 billion R8.7 billion (20
Slide 12: 2024 Operational Results
2024 OPERATIONAL RESULTS1 EXPORT FOB COST SUSTAINING SALEABLE PER EXPORT TONNE CAPITAL PRODUCTION2 SA ENSHAM 17.7Mt (2023: 13.2Mt) R1.7 billion R1,151/t R1,674/t (2023: R1.7 billion) SA 13.6Mt | Ensham 4.1Mt (2023: R1,134/t) (2023: R1,886/t) EXPORT FOB COST EXPANSIONARY EQUITY PER EXPORT TONNE CAPIT
Slide 13: South Africa – Export Saleable Production and Sales
SOUTH AFRICA – EXPORT SALEABLE PRODUCTION AND SALES H1 stockpile movement (Mt) Operational excellence reflects strong production growth 6.2 6.0 • Full year output higher than 2023 – despite removal of three sections in 2.4 2.2 0.4 2023 due to rail constraints • H2 production of 7.4Mt higher than Sto
Slide 14: Ensham – Export Saleable Production
ENSHAM – EXPORT SALEABLE PRODUCTION (Mt at 100%) +52% 4.1 Significant increase in production performance • Export saleable production increased 52% from annualised run rate of 2.7Mtpa at date of acquisition • Focused productivity projects 2.7 resulted in production of 2.5Mt in H2 2024 vs.1.6Mt in H1
Slide 15: Revenue
REVENUE (R billion) Revenue impacted by lower realised coal prices 1.2 2.6 • Ensham export sales included for 12 2.8 35.6 months (4 months in 2023) 9.3 0.2 0.8 0.8 • Higher export equity sales in South 30.6 Africa at 12.6Mt (2023: 11.9Mt) • Realised prices in South Africa 12% lower in 2024 • Realise
Slide 16: Operating Costs
OPERATING COSTS (R billion) Inflation and cost of incremental production drives increase in 0.4 0.3 0.1 0.4 0.3 31.8 South Africa 0.6 0.4 0.9 • Ensham costs included for 12 months 6.1 • Inflation remains pronounced in South Africa 23.7 • Commodity purchases to fulfil our sales commitments • Higher p
Slide 17: Ensham – Operating Costs
ENSHAM – OPERATING COSTS (R billion) On mine costs 59% of total 8.2 operating costs 1.0 • Employee costs represent 27% of total on-mine cash costs 0.9 • Royalties based on Queensland progressive royalty method – 11% of average realised price in 2024 1.4 • Logistics costs driven by rail and port 4.8
Slide 18: South Africa - FOB Cost per Export Tonne
SOUTH AFRICA - FOB COST PER EXPORT TONNE (R per tonne) Cost increase partially offset by additional volumes • Unit cost increase by 4.2% 25 23 1,134 33 110 1,130 21 1,151 • Inflation on cash costs of 6.5% 50 1,084 70 5 • Lower domestic revenue offset • Increases in FOB cost offset by impact of highe
Slide 19: Adjusted EBITDA
ADJUSTED EBITDA (R billion) Lower coal prices drive the decrease 1.3 • Ensham adjusted EBITDA for 12 months 8.5 • Average realised price in South Africa and 3.0 Ensham decreased by 12% and 20% respectively 0.3 1.2 0.9 • Adjusted EBITDA margin of 18% 0.9 6.3 (2023: 28%) 0.4 0.4 0.4 • South Africa 16%
Slide 20: Summarised Cash Flow
SUMMARISED CASH FLOW (R billion) Sources and uses of cash • Cash returned to shareholders R3.2 billion during the year 1.7 • Net cash generated from operating activities R5.3 billion 10.2 5.3 1.7 (2023: R8.5 billion) 1.6 1.2 • Investment of R3.4 billion in 8.7 sustaining and expansionary 0.6 capital
Slide 21: Returns to Shareholders
RETURNS TO SHAREHOLDERS Capital allocation 1 (R billion) Disciplined capital allocation 8.7 3.2 8.6 • R900 million cash reserved for life 0.9 extension projects • R400 million cash reserved for LCBM 0.4 project 1.5 • Final dividend of R1.5 billion (R11 per share) 0.2 • Share buyback of up to 0.3 5.4
Slide 22: Conclusion
CONCLUSION July Ndlovu | Chief executive officer 22
Slide 23: 2025 Operational Guidance
2025 OPERATIONAL GUIDANCE South Africa Ensham (on a 100% basis) Metric 2025 Metric 2025 Export saleable Export saleable production Mt 12.8 – 13.6 production Mt 3.7 – 4.1 FOB cost per FOB cost per R/tonne 1,220 – 1,300 R/tonne 1,650 – 1,780 export tonne export tonne FOB cost per export FOB cost per e
Slide 24: Delivering on Our Purpose
DELIVERING ON OUR PURPOSE UNWAVERING Operate a fatality-free business COMMITMENT TO SAFETY DRIVING Our ability of controlling the controllables OPERATIONAL EXCELLENCE Productivity improvement and cost competitiveness EXECUTING ON OUR Building a sustainable long-life business STRATEGIC PILLARS OPTIMI
Slide 25: Q&A
Q&A 25