Thungela Resources Ltd warned on Friday it expects annual earnings to plunge as a result of once-off adjustments, lower production and weaker prices.
The Rosebank-based coal miner said earnings per share is likely to slump to a range of between R 34 and R 39 in 2023, from R 127.08 in 2022.
Over this period, the company estimates a headline EPS between R 31 and R 36, down sharply versus R 130.82.
The coal producer said its earnings include various once-off, non-cash adjustments related to its acquisition of the Australian-based Ensham coal mine.
It completed the Ensham deal late in October last year. On Friday, it said it had consolidated 85% of the results of the Ensham business.
In December, Thungela warned that it had cut production in response to rail constraints in South Africa, aggravating sluggish demand and coal price slump.
It said at the time the benchmark coal prices had softened markedly in 2023 following the record levels observed in 2022. The Richards Bay Benchmark coal price has averaged $122.88 per tonne for the year to date, compared to $270.87 per tonne for 2022. The Newcastle Benchmark coal price has averaged $175.15 per tonne for the year to date, compared to $360.19 a tonne in 2022.
Thungela said export saleable production relating to its South African operations is expected to be 12.1 million tonnes in 2023, marginally higher than the mid-point of the guidance range of 11.5 million tonnes to 12.5 million tonnes. In 2022, export saleable production was 13.1 million tonnes.
The miner expects to release its full-year financial results on March 18.
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