Thungela guides annual loss as coal price weakness forces impairment

Thungela Resources Ltd on Monday warned it expects to swing to an annual loss as the coal producer takes an impairment for depressed coal prices.

The Rosebank-based thermal coal producer guided for a loss per share of between R 53.50 and R 56.00 for 2025, flipped from earnings per share of R 26.76 in 2024.

Thungela estimates its headline loss per share at between R 5.50 and R 7.50, swung from headline EPS of R 25.59.

The coal miner said the expected loss is primarily due to impairment losses of R 8.8 billion, recognised across its operations both in South Africa and Australia, based on a softer coal price outlook and stronger forecast for its producing currencies against the US dollar.

Seaborne thermal coal prices continued to soften in 2025, with the Richards Bay Benchmark coal price and the Newcastle Benchmark coal price falling 15% and 22%, respectively, Thungela said.

Prices were hurt by weak demand from Thungela’s key seaborne markets, as pressure to meet energy demand with domestic coal and alternative energy sources reduced their coal imports, it said.

Thungela also said currency movements also hurt financial performance in 2025, with both the rand and the Australian dollar stronger against their US counterpart.

Thungela expects to release its full annual results on March 23.

Shares in Thungela were up 3.8% to R 114.91 in Johannesburg on Monday at midday, while they were up 2.2% to 5.19 pence in morning trade in London.

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