Thungela Resources Limited (LSE:TGA) shares jumped as much as 11% to an intraday high of 497.5p on Monday after the thermal coal producer reported stronger first-half earnings, cash generation and production and increased its interim dividend.
For the 6 months to 30 June 2026, export saleable production increased 6% to 8.5 million tonnes (Mt), while revenue rose 2% to R15.2 billion (approximately £699 million).
Adjusted EBITDA increased 91% to R1.32 billion (£60.7 million), while adjusted operating free cash flow rose to R1.89 billion (£86.9 million) from R484 million a year earlier.
Net profit reached R1.39 billion (£63.9 million), compared with R248 million previously, while earnings per share increased to R10.95 from R1.93.
Thungela ended June with net cash of R6.1 billion (£280.6 million) and declared an interim dividend of R5.50 per share (around 25.3p), up from R2.00.
Production improves across operations
South African export saleable production reached 6.3Mt, supported by improved performance at Khwezela and continued strong production from Mafube.
At the Ensham operation in Queensland, Australia, production increased to 2.2Mt from 1.6Mt as mining conditions improved.
The Annea Colliery and Zibulo North Shaft life-extension projects were completed on time and within budget and are now ramping up.
Guidance maintained
Thungela maintained 2026 export saleable production guidance of 13.0-13.6Mt in South Africa and 3.9-4.2Mt at Ensham.
The group operates thermal coal assets in South Africa and Australia and is listed in London and Johannesburg.
