The first set of results from Thungela Resources PLC (LSE:TGA) as an independent company got a warm reception, as the thermal coal miner reported massively increased earnings.
Revenue (expressed in South African rand) in the first half of 2021 shot up 506% to R10.04bn from R1.65bn the year before.
Adjusted underlying earnings (EBITDA) soared 664% to R1.88bn from R247mln the previous year.
The reported profit before tax was R351mln versus a loss of R122mln in the first half of 2020.
Net cash stood at R3.04bn, compared to net debt of R388mln at the end of 2020.
“Our operating profit of R990mln and adjusted EBITDA of R1.88bn demonstrate our ability to operate profitably notwithstanding the ongoing pandemic,” said July Ndlovu, the chief executive of Thungela.
“After a month of operating as a stand-alone 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. Our business reported an increase in earnings, with earnings per share of 313 cents. The steps we have taken to upgrade our portfolio and our continued focus on improving productivity and operating costs, will no doubt stand us in good stead into the future,” Ndlovu said.
Shares in Thungela were up 8% at 245.9p.