Thungela Resources Limited Trading Statement for the year ended 31 December 2021THUNGELA RESOURCES LIMITED(Incorporated in the Republic of South Africa)Registration number: 2021/303811/06JSE share code: TGALSE share code: TGAISIN: ZAE000296554(‘Thungela’ or ‘the Group’ or ‘the Company’)Thungela Resources Limited Trading Statement for the year ended 31 December 2021Shareholders are advised that Thungela and its directors have a reasonable degree of certainty related tothe expected financial results of the Group for the year ended 31 December 2021 in line with paragraph3.4(b) of the JSE Listings Requirements.Expected earnings and headline earnings per share prepared in accordance with IFRSShareholders are advised that earnings per share (‘EPS’) for the year ended 31 December 2021 (the ‘currentperiod’) is expected to be between R60.32 and R61.27, an increase of between R65.63 and R66.58 pershare compared to a loss per share of R5.31 for the year ended 31 December 2020 (the ‘prior period’).Headline earnings per share(1) (‘HEPS’) for the current period is expected to be between R65.81 and R66.76,an increase of between R71.12 and R72.07 per share compared to a loss per share of R5.31 for the priorperiod. Headline earnings for the current period is likely to be between R6.9 billion and R7.0 billion(compared to headline losses of R0.3 billion in the prior period).These EPS and HEPS figures are calculated using a weighted average number of shares (‘WANOS’) of105,260,339 for the current period and 62,110,182 for the prior period. The WANOS has been impacted bythe timing of the Internal Restructure as detailed in the Reviewed condensed consolidated interim financialstatements for the six months ended 30 June 2021, as well as the purchase by the Group of its own sharesin November 2021 in relation to employee share awards.Earnings increased as a result of the increase in revenue driven by the strong price environment for thermalcoal in 2021 and higher realised prices achieved by the Group. This has been accompanied by improvedcost efficiency across our operations, positively impacting the profitability of the Group.The expected EPS and HEPS ranges for the current period are summarised in the table below: IFRS Expected EPS/HEPS range Expected increase range (Rand per share) (Rand per share) EPS 60.32 – 61.27 65.63 – 66.58 HEPS 65.81 – 66.76 71.12 – 72.07Expected earnings and headline earnings per share presented on a pro forma basisShareholders’ attention is drawn to the Reviewed condensed consolidated interim financial statements forthe six months ended 30 June 2021 (available on the Thungela website) which detailed the significantcomplexity in relation to the comparability of the Group’s financial results for the current and prior periods. Asa result of the timing of the Internal Restructure and the Demerger of the Group from Anglo American plc inJune 2021, Thungela will again present a pro forma statement of profit or loss for the current and priorperiods. This will be presented to reflect what the results of the operations would have been for the Group inthese periods, as it is likely to exist on a forward-looking basis.The pro forma statements of profit and loss to be presented in relation to the timing of the InternalRestructure reflect that pro forma EPS for the current period is expected to be between R47.15 and R 47.88,an increase of between R79.52 and R80.26 per share compared to a loss per share of R32.37 for the priorperiod.Pro forma HEPS for the current period is expected to be between R51.40 and R52.13, an increase ofbetween R70.00 and R70.73 per share compared to a loss per share of R18.60 for the prior period. Proforma headline earnings for the current period is likely to be between R7.0 billion and R7.1 billion (comparedto headline losses of R2.5 billion in the prior period).These pro forma EPS and HEPS figures are calculated using a WANOS of 135,957,450 for the currentperiod, and 136,311,808 for the prior period, which has been adjusted to reflect the purchase by the Groupof its own shares in November 2021 in relation to employee share awards.The expected pro forma EPS and HEPS ranges for the current year are summarised in the table below: Pro forma Expected EPS/HEPS range Expected increase range (Rand per share) (Rand per share) EPS 47.15 – 47.88 79.52 – 80.26 HEPS 51.40 – 52.13 70.00 – 70.73Key areas of judgement which may impact the expected IFRS and pro forma EPS and HEPS figures aboveare in the process of being finalised, and any changes to these ranges, if necessary, will be communicatedto shareholders. The Group is expected to marginally outperform the previous guidance that was included inthe Chief Financial Officer’s Pre-Close and Trading Statement on 6 December 2021.Thungela expects to release its annual results and audited consolidated annual financial statements for theyear ended 31 December 2021 on or around 22 March 2022. Results will be released on the JohannesburgStock Exchange News Service and the London Stock Exchange Regulatory News Service and will beaccompanied by an investor webinar and conference call on the same date. Further details will be madeavailable on Thungela’s website (www.thungela.com) in due course.Deon SmithChief Financial OfficerFootnote(1) HEPS is determined in reference to Circular 1/2021 – Headlines earnings (‘Circular 1/2021’) as issued by the South African Institute of Chartered Accountants. In order to calculate headline earnings, earnings attributable to equity shareholders of the Group is adjusted for separately identifiable remeasurements, as defined in Circular 1/2021, net of related tax and non-controlling interests.Review of Trading StatementThe information, including the pro forma financial information, contained in this Trading Statement is theresponsibility of the directors of Thungela and has not been reviewed or reported on by the Group’sindependent auditor. The responsibility for presenting the pro forma financial information and thecompleteness and accuracy thereof is that of the directors of Thungela. The pro forma financial informationis presented for illustrative purposes only and because of its nature, may not fairly present the results ofThungela’s operations.DisclaimerThis document includes forward-looking statements. All statements other than statements of historical factsincluded in this document, including, without limitation, those regarding Thungela’s financial position,business, acquisition and divestment strategy, dividend policy, plans and objectives of management forfuture operations (including development plans and objectives relating to Thungela’s products, productionforecasts and Reserve and Resource positions), are forward-looking statements. By their nature, suchforward-looking statements involve known and unknown risks, uncertainties and other factors which maycause the actual results, performance or achievements of Thungela or industry results to be materiallydifferent from any future results, performance or achievements expressed or implied by such forward-lookingstatements. The Group assumes no responsibility to update forward-looking statements in thisannouncement except as required by law.The information contained within this announcement is deemed by the Company to constitute insideinformation as stipulated under the market abuse regulation (EU) no. 596/2014 as amended by the marketabuse (amendment) (UK mar) regulations 2019. Upon the publication of this announcement via theregulatory information service, this inside information is now considered to be in the public domain.Investor RelationsRyan AfricaEmail: ryan.africa@thungela.comMedia ContactsTarryn GenisEmail: tarryn.genis@thungela.comUK Financial adviser and corporate brokerLiberum Capital LimitedSponsorRand Merchant Bank(a division of FirstRand Bank Limited)Johannesburg11 February 2022Date: 11-02-2022 11:00:00Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
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ABOUT US
OverviewThungela is a leading pure-play producer and exporter of high-quality, low-cost thermal coal with operations in South Africa and Australia.
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ESG
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OUR PEOPLE
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INVESTORS
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SUPPLIERS
OverviewWe expect our suppliers to comply with all applicable laws and to uphold our commitment to enhancing lives, strengthening communities and protecting the environment.
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NEWS
