Anglo American spin-off Thungela unearths £17m profit
13 August 2021, 10:34
The South African mining company put a turbulent listing behind it to turn a £6 million loss into a big pre-tax profit.
The company spun out of Anglo American, to split it from its South African coal mines, has reported a sixfold increase in revenue.
Thungela Resources said that revenue had grown by more than 500% to 10 billion South African rand (£490 million) in the first six months of the financial year.
The business also recorded a 351 million rand (£17 million) pre-tax profit from a 122 rand (£6 million) loss.
In June, Thungela was listed on the London and Johannesburg stock exchanges as it started life separated from Anglo American.
It was a turbulent listing as, just a day before its shares became public, a short seller accused Anglo American of massively underestimating the environmental liabilities that the new coal company would be responsible for.
As a result, shares in the firm collapsed 25% on their first day. However, they have since more than recovered.
“Thungela is pleased to announce a significant increase in interim earnings as we report for the first time as an independent, focused coal export business,” said chief executive July Ndlovu.
He said: “After a month of operating as a standalone business, we are cash positive and well positioned to deliver on our targets.
“We are pleased to note the recent recovery of global thermal coal prices. These are reflective of the continued demand for high quality coal amid challenging supply dynamics across many regions.”
Shares in the company rose another 3.7% on Friday morning following the results.
The business said that it believes capital expenditure will be at the lower end of the range previously announced this year, putting it closer to 2.6 billion rand (£127 million) than 3 billion rand (£146 million).
