Full Year 2024 Thungela Resources Ltd Trading Statement Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brian Morgan - RMB Morgan Stanley (Proprietary) Limited - Analyst : Hi, guys. Thanks for the update. Deon, maybe looking at this improvement of Transnet, it's great, but maybe just help us to understand sort of what's next. Is there anything that you guys are looking at, any initiatives that Transnet's doing that can take volumes up further?

Question: Brian Morgan - RMB Morgan Stanley (Proprietary) Limited - Analyst : Okay. Thanks, Deon. And then, let's assume they get to 60 million tons. Are you guys able to fulfill your allocation at that level? Will you have to restart some sections or sell down inventories?

Question: Brian Morgan - RMB Morgan Stanley (Proprietary) Limited - Analyst : Okay, cool. Thank you, Deon. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 11:00AM, TGAJ.J - Full Year 2024 Thungela Resources Ltd Trading Statement Call

Question: Tim Clark - SBG Securities - Analyst : Thanks. Good afternoon, everybody. I've got a couple of questions. Just the first one, can you remind us what the cash flow effect, not just the cost effect, was from settlement of the Newcastle contract amount in the second half? Just so that maybe a realized cash price makes sense, if that makes sense, as opposed to sales price, just to start off?

Question: Tim Clark - SBG Securities - Analyst : Okay, super. That really helps a lot. Thank you. My second one is just on Ensham. If I remember correctly, at the half-year results, you spoke about costs being a little elevated in the second half because of an environmental or an environment provision, which is non-cash. Can you give us an idea of how much that was now that it's passed?

Question: Tim Clark - SBG Securities - Analyst : Thanks. That's very helpful and a great outcome. So well done on Ensham's production. I think it's fantastic to see that 4 million ton number. So well done. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 11:00AM, TGAJ.J - Full Year 2024 Thungela Resources Ltd Trading Statement Call And then just my last point, just a reminder for us all on the call on the buffer. You've got ZAR800 million of CapEx remaining on the growth project. Remind us how much you would want to ideally, or in principle -- I know the Board has to decide on any capital returns or dividends, but in principle, what kind of comfort level of additional buffer beyond the ZAR800 million you would want to keep?

Question: Tim Clark - SBG Securities - Analyst : And then just -- I suppose, maybe just a second kind of consequence to that is, are there any big projects that are -- or projects that are starting to materialize in the investment committee which you're starting to sort of prepare yourself for spend on? It feels to me like the Waterberg project is far away. You've done now Zibulo and you've done -- you're near there and you've done Elders. Is there anything else that you're preparing for or thinking about?

Question: Tim Clark - SBG Securities - Analyst : That's all from me. Thanks, and congratulations for a very positive set of news flow items today on production and costs and CapEx. So well done.

Question: Jon Ogden - Eastern Value Ltd - Analyst : Thank you. Thanks, Deon and team, and great job there. I'll just give you my questions, the whole lot in one go, just to save time. So you mentioned your crystal ball there, Deon. So how about we look at your outlook for coal prices in 2025? I mean, obviously, you can throw a lot of things in there like China stimulus, Trump tariffs. But maybe the two items that might be interesting to think about is I think Russian supply is looking a bit constrained due to rail issues, which might sound familiar. So that's one thing. And the other one is Indian demand, which is very key for your products. So that's one question. Second one, anything brewing at all, if you can tell, us on M&A? or is that very quiet? Third one is, any news on the minority partners of Ensham? Because we're coming towards, I think, February next year is the resolution of that one way or the other if they're going to stick around. And then finally, what's the kind of maintenance CapEx per year if we're kind of through these -- the heavy items, as you mentioned? Thanks very much indeed.

Question: Jon Ogden - Eastern Value Ltd - Analyst : Thanks, Deon. Actually, just one other quick question for you. Now you have got your hands on the marketing, so do you have more of an idea of your split geographically and how important India is? And then within India, how important is thermal power versus things like pig iron, which I think probably your product will go into as well? So I don't know if you have got more of a split you can give us on usage of your products from South Africa.

Question: Jon Ogden - Eastern Value Ltd - Analyst : Excellent. Well, that's really good to hear. Thank you very much indeed, Deon. I'll pass it over to another caller.

Question: Thobela Bixa - Nedbank Securities (Pty) Ltd. - Analyst : Yeah. Thanks, operator, and good afternoon, everyone, and well done on a good set of results. I've just have a couple of questions, two related to Transnet. So the first one is, could you just remind us as to how much you believe TFR performance could improve by excluding the resolution of that CRR contract? And perhaps maybe if I ask this differently to say, do you believe that 60 million tons sort of target that I think they've put out? And then related to that is, do you think TFR's performance, especially post that shutdown, that it is repeatable? If yes, what are you seeing that gives you confidence that we can repeat those sorts of run rates into next year? I'll pause, and then I'll ask my final one later.

Question: Thobela Bixa - Nedbank Securities (Pty) Ltd. - Analyst : Yeah, no, thanks. Thanks, Deon. And then just on the final one, we've seen you just exceed your guidance with regards to Ensham and just outperform on that asset, especially on the volume side. I mean, are you being conservative here in terms of your guidance or you are surprising yourself as well on the upside?

Question: Thobela Bixa - Nedbank Securities (Pty) Ltd. - Analyst : Yeah. And maybe if I may put in just the last one related to Ensham, Deon. I think previously you have spoken about, I think, Ensham's capacity being at around about 4.2 million tons. Could you just confirm that and perhaps just elaborate whether you think you are closer to maximizing the full capacity of that mine? Thank you.

Question: Thobela Bixa - Nedbank Securities (Pty) Ltd. - Analyst : Okay. Thank you so much.