Thungela Resources, South Africa’s largest coal exporter, has declared R1.5 billion in dividends for 2024, despite facing a challenging year marked by falling profits and ongoing rail issues. The company announced a dividend of R11 per share, bringing its total payout for the year to R13 per share. In addition, Thungela unveiled plans for a R300 million share buy-back programme to be executed during 2025.
The miner’s annual profit declined by 29% to R3.55 billion, attributed to weaker coal prices and logistical setbacks. Despite these hurdles, Thungela achieved impressive production growth. In South Africa, export saleable production rose by 11%, while Australian operations recorded a remarkable 302% increase, thanks to the acquisition of the Ensham mine. This boost in output exceeded the company’s full-year guidance.
Thungela highlighted that its South African export saleable production reached 13.6 million tonnes, a significant achievement considering that three underground mining sections were removed in 2023 in response to persistent rail constraints. Encouragingly, Transnet Freight Rail’s performance improved after its annual maintenance shutdown in July 2024, easing some of Thungela’s logistical challenges. Despite the drop in profits, the company’s resilience in increasing production and maintaining shareholder returns reflects its commitment to navigating tough market conditions. Thungela’s share price climbed 5.5% following the announcement, closing at R113 per share — largely unchanged over the past year.