Africa-Press – South-Africa. Coal miner Thungela has declared a final cash dividend of R40 per share for its 2022 year, bringing its total dividend for the year to R100 per share, paying more than its own dividend policy required as it cashed in on record prices.
The coal miner reported a three-fold increase in adjusted earnings before interest, taxes, depreciation, and amortisation to R29.5 billion for its year to end-December, with net profit rising a similar amount to R18.2 billion.
The total shareholder returns for the year equate to R13.8 billion or 76% of adjusted operating cash flow for the year – well ahead of Thungela’s policy to return 30% of adjusted free cash flow.
Thungela, which was spun out of Anglo American in mid-2021, said the results were in spite of railing challenges which caused the company to lose 3 million tonnes in export saleable production volumes, “as a direct result of the poor Transnet Freight Rail performance”.
The company said that although thermal coal prices have softened in early 2023, prices can be expected to remain robust, though they unlikely to return to the high levels seen in 2022.
Given Transnet’s poor performance in 2022, the company has reset its production outlook for 2023 and revised its export saleable production guidance downward.
“I look ahead with a sense of caution in the short term, yet confidence in the longer term. In the short term, fixing the rail network is a matter of critical importance to South Africa as the mining industry delivers far-reaching benefits such as sustained jobs and livelihoods in our communities, and it contributes significantly to the economy,” said Thungela CEO July Ndlovu.
“We will continue working with Transnet to resolve the issues plaguing the rail performance and call on government to support these efforts to ensure that the mining industry can continue to create value together for South Africa and its people.”
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Thungela’s shares fell almost 7% to R183 in early trade on Monday, and have fallen almost 30% so far in 2023.
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