Thungela Resources Limited is a small-cap company based in South Africa that is among the leading producers of high-quality coal. With exports to India, Southeast Asia, the Middle East, and North Africa, the Thungela share price is one of the highest-queried investments on the JSE.
Below, we discuss the Thungela share price, financial health, and forecast.
What is the Thungela Share Price JSE today?
Thungela Resources Ltd. is listed at TGA on the Johannesburg Stock Exchange (JSE:TGA) and on the London Stock Exchange with the same code (LSE:TGA).
The Thungela Resources share price is between R129.26 and R132.08, and its dividend yield of 9.16% is slightly above the JSE average.
The company’s current market capitalization is R18.405 billion, and an earnings per share (twelve months trailing) of R2201.85.
The average daily trading volume is 74,300, with 133.06 million floating stocks.
Refer to the data below for the Thungela share price data.
| Market capitalization | 18,405,933,561 |
| Range | R129.26 – R132.08 |
| EPS-TTM | 2201.85 |
| Dividend Yield | 9.16% |
| Dividend ex-date | September 19, 2024 |
| Dividend pay-date | September 23, 2024 |
| Return on equity | 9.97% |
| Authorized Shares | 10,000,000,000 |
| Issued Shares | 140,492,585 |
| Average Volume | 74,300 |
Thungela Financial Health
Thungela has yet to release an updated financial report for the fiscal year 2024.
According to the most recent data, Thungela’s revenue decreased 40% in 2023 compared to the previous year. In 2023, Thungela reported a revenue of R30.6 billion.
Meanwhile, the adjusted EBIDTA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is also down from R29.5 billion to R8.5 billion.
In March 2024, the company declared a final dividend of R10.00 per share, bringing the total dividend for the year to R20.00 per share, amounting to R2.8 billion in dividends relating to 2023.
Meanwhile, the company also announced a 500 million share buyback, bringing total returns to shareholders to R3.3 billion.
According to their report, “Thungela Resources Limited…has demonstrated a resilient performance that underpinned strong cash generation and a robust net cash position, which supports total returns to shareholders of R3.3 billion relating to 2023, equivalent to 49% of adjusted operating free cash flow, significantly higher than the minimum of 30% per the dividend policy.”
Commenting on the financial report, Thungela CEO July Ndlovu said that Thungela experienced significant transformation in 2023 because of the acquisition of the Ensham operations in Australia. More recently, Thungela has fully acquired ownership of Ensham.
In terms of operational performance, the company produced a total of 24.1 million tons, with coal reserves totaling 249.2 million tons and coal resources totaling 793.2 million tons.
Overall, the country’s coal shipments fell to a three-decade low of about 47 million per year in 2023, mainly due to the limited transportation capacity of state-owned ports and rail company Transnet, cable theft, and infrastructure vandalism.
Thungela Share Price Forecast
Analysts expect three major headwinds for Thungela’s production, which are mainly external factors to which Thungela has to adapt.
Infrastructure
First, is that the upcoming summer could cause a seasonal effect because Thungela is susceptible to infrastructure issues affecting production in the coal mines.
Poor rail performance
Second, the continued struggle is caused by inefficient national railways. At the end of 2023, the Group had lost about 650 kilotons of export sales due to railway issues. Meanwhile, South Africa Coal Rail has seen a worse turnaround, moving 1.3% less in 2024 than in the previous year.
To manage the continued poor rail performance, Thungela continues to work closely with industry players and Transnet to improve rail performance. Through industry collaboration, companies like Thungela are helping Transnet acquire critical spare parts from alternative suppliers.
Geopolitical tensions
Third, should the war in Russia and Ukraine persist and the rising tensions between China and the US lead to trade disputes, South Africa and Australia could provide the necessary means to fill the coal undersupply.
Sales forecast
In terms of sales, Thungela expects South African sales to be lower for the first half of the year compared to the previous year. However, the company’s production will remain.
Meanwhile, coal pricing is expected to decline in the coming years. For instance, Bank of America (BofA) Global Research predicts that thermal coal will average $190 per tonne in 2025 and $140 in 2026.
Furthermore, global coal demand is also expected to decrease in 2025 and continue falling in 2026. This may be due to the increasing demand for renewable and rechargeable energies. However, the demand will still be significant.
However, CEO July Nvodlu is convinced that coal shipments could rise to more than 50 million tons annually from 2025. Nvodlu is extremely optimistic about the future of coal, believing it will play a key role in meeting the world’s energy needs for at least another three decades and possibly longer.
What is Thungela Resources Ltd?
Thungela Resources derives its name from the isiZulu word for “to ignite.” The company is a top producer and exporter of high-quality, low-cost thermal coal with operations in South Africa and, most recently, an extension in Australia.
Thungela operates six mining operations in South Africa’s Mpumalanga province: Zibulo, Doedehoop, Greenside, Isibonelo, Khwezela, and Mafube Collieries. The Group recently acquired full control of the Ensham Mine in Queensland, Australia.
Moreover, Thungela also has a 50% stake at the Phola Coal Processing Plant, a significant coal facility in South Africa’s Witbank coalfield with a capacity of 16 million tonnes per annum (mtpa). Meanwhile, the Group has a 23% indirect interest in the Richards Bay Coal Terminal, one of the world’s leading coal export terminals.
The company currently has two ongoing strategic projects: The Elders Project and the Zibulo North Shaft, which extends its mining reserves and operations in South Africa.
Thungela acquires full control of Ensham operations
The thermal coal producer bought the Ensham mine in Australia. This is a strategic move for the Group, as shipments in South Africa are delayed or lost due to insufficient rail capacity.
So far, the performance of the Australian mine has justified Thungela’s strategy to grow through acquisitions, said CEO July Ndlovu in an interview with Reuters.
Thungela hunts for new assets
In the fourth quarter of 2024, Thungela CEO Ndlovu announced that they are searching for new mines to buy and may consider acquiring coking coal assets.
According to Ndlovu, Thungela is considering investing in new coal production because of “additional potential given the size of the resource.”
Ndlovu admitted that banks and financiers are no longer prioritizing funding new coal production. Thungela will try to find attractive opportunities to add “more value…and enhance shareholder returns.”
Ndlovu states, “we will continue to evaluate our portfolio with a focus on strengthening our competitiveness and optimizing capital allocation to maximize shareholder returns.”
Thungela CEO is the 3rd highest-paid CEO in South Africa
Zimbabwean businessman July Ndlovu, CEO of Thungela Resources Limited, has been ranked the third highest-paid CEO in South Africa.
In 2022, Ndlovu was paid over R129 million. During his tenure as Thungela’s CEO, he oversaw the successful listing of Thungela on the Johannesburg Stock Exchange and the London Stock Exchange.
Since 2020, he also presides as the appointed chairman of the World Coal Association.
Previously, Ndlovu held the post of CEO of Anglo-American’s coal business in South Africa.
How to Invest in Thungela Resources Limited?
Stock investments can provide traders with positive returns in the long term. Likewise, TradersUnited advises all traders to conduct thorough research about their investments, consult with professionals or a community, and improve their financial literacy.
Here are a few steps to follow when investing in Thungela stocks.
Find a broker that offers access to the JSE. Selecting the right broker is crucial when you want to start investing. Find one that is compatible with your investment style.
Review the broker’s trading conditions. Research and consult other investors to avoid brokers that may exploit your capital. If possible, join a verified community of traders such as CommuniTrade. A community can help you find the right brokers and make favorable decisions.
Open an investment account. Register and verify your account. This gives you a convenient way to view and buy stocks via your broker’s website.
Select AMS as the stock you want to buy. Thungela Resources is listed as TGA on the Johannesburg Stock Exchange. Alternatively, it may also appear as JSE:TGA.
Identify the right orders. Stocks come in order types, and your account will allow you to view which orders your broker offers.
Plan your next step. Take a look at other featured stock investments by TradersUnited to diversify your portfolio.
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