Thungela Resources Ltd said on Tuesday it expects to exceed its annual production guidance for 2024 but noted that coal prices remain depressed.
The South Africa-based thermal coal exporter said its diversification into Australia continued to enhance its production profile.
Thungela guided for export saleable production from its South African operations of about 13.4 million tonnes in 2024, compared to 12.2 million tonnes in 2023. The 2024 guidance was revised up from between 11.5 million tonnes and 12.5 million tonnes.
The increase in production is mainly as a result of improved rail performance in South Africa, enabling the material step-up in operational performance at Khwezela and Zibulo, Thungela said.
Free-on-board cost per export tonne, excluding royalties for South Africa, is expected to be marginally below the lower end of the guidance range of between R 1,170 per tonne and R 1,290 in 2024, due to the higher export saleable production.
The coal miner estimates export saleable production at Australian-based Ensham coal mine to be about 4.0 million tonnes, higher than the revised guidance range of 3.5 million tonnes and 3.8 million tonnes in August. It said stronger Australian output is mainly due to productivity efficiencies and better than anticipated progress made in traversing geological features.
Thungela sealed its acquisition of Ensham in August.
On coal prices, Thungela said benchmark coal prices had softened to an average $105.21 per tonne for the first 11 months on 2024, compared to $121.00 per tonne for the 2023 financial year.
The Newcastle Benchmark coal price declined to $135.59 per tonne on average over this period from $172.79 per tonne.
Thungela expects to release its annual financial results on or about March 17.
Shares in Thungela were up 4.6% at 562.00 pence early Tuesday in London. They were up 3.8% to R 127.53 in Johannesburg.
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