Full Year 2025 Thungela Resources Ltd Pre Close Statement Call Transcript

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

Question: Brian Morgan - Morgan Stanley - Analyst : Thanks Dion. Just a question on sort of more medium-term question, if I may. You've got Greenside rolling off for the next two years and so if I'm not mistaken, Khwezela in the next three years. So obviously, the production profile comes off. And just wondering how with Transnet's performance improving? So what sort of filler material can we expect you to be putting into the mix in the next three years to make up, is that all in theme four? Or is that -- are there other projects that you might be able to pull in?

Question: Brian Morgan - Morgan Stanley - Analyst : Cool. Thanks Dean. Do you have a rough estimate for the CapEx required? Is it a couple of billion, is it a couple of hundred million?

Question: Brian Morgan - Morgan Stanley - Analyst : Okay. Cool. And then just last question, if I may. Just on Annea and Zibulo North is sort of replacing volumes, is it right to assume that there will be sort of lower unit costs that potentially also lower product qualities and so maybe flat on a margin perspective, but just differences on costs and realizations?

Question: Brian Morgan - Morgan Stanley - Analyst : Okay. Cool. That's fantastic. That's all for me. Thanks, Dion.

Question: Thobela Bixa - Nedbank Capital - Analyst : Thank you so much, operator. And good afternoon, Thungela team. Actually, my questions are quite similar to what Brian has asked, but I think perhaps I'll ask them differently. Just -- I mean, we're seeing Transnet improve, not only that, but also Sasol's export capacity is also coming online. So it is coming to the market. And I guess, the answer that you've given to Brian, at least for me, where I stand it doesn't give sort of some sense of confidence in Thungela being able to actually take advantage of that. So maybe if you could just comment around that and maybe perhaps you spoke to I guess that you are looking into these projects, which could effectively increase your volumes perhaps when can you expect you to come back to the market to tell us, by when you would make some of those investments? So that's my first question.

Question: Thobela Bixa - Nedbank Capital - Analyst : Okay. And then my second one also, similar to what Brian asked, it's around the quality of the Elders, which you spoke to vessels holdup, maybe, I guess what I'm trying to figure out is, given that the quality of the ore that you put into the market is less qualitive versus what you have shut down. Should we expect further pressure on your realized pricing? Or perhaps are there other levers that you're likely to pull in order to be able to, I guess, maintain your discount at around about that 15% level?

Question: Thobela Bixa - Nedbank Capital - Analyst : Okay. No, thanks. My last question is on your long-term thermal coal price that you use, especially for the SA assets. Could you just talk us through that? And the reason I ask is, I mean, you specifically mentioned in the results that you're looking at the assets which, given where the price -- thermal coal prices are, some of those carrying values might have to be readjusted. So could you just take us through what -- how you guys think about your long-term coal price? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / NTS, TGAJ.J - Full Year 2025 Thungela Resources Ltd Pre Close Statement Call

Question: Tim Clark - SBG Securities (Pty) Ltd - Analyst : Thanks, good afternoon. Congratulations on the strong production results out of South Africa, particularly. I just want my question -- I've got a couple of questions. Just the first one is just looking forward to the year ahead, you've had this ZAR1.2 billion benefit from hedges, but you've also had higher CapEx given which is going to roll off, right. You've had ZAR1.2 billion of additional CapEx and there's only ZAR100 million left to spend. So I guess the first question I've got is, is that a sort of fair offset? I mean, the average -- I would imagine that the average rand is higher than spot rand. So I would imagine that there's a sort of net cash at sort of today's levels negative, maybe offset by slightly higher production. Maybe the easy way of asking that question is, are we around about cash breakeven right now? Or are we maybe just a little bit in the cash on average at the moment?

Question: Tim Clark - SBG Securities (Pty) Ltd - Analyst : Yeah. Thanks. That's helpful. And then if I think back to when you first introduced your thoughts to us on the buffer, if I remember correctly, you said at the time that the best thing to do would be to have a strong buffer when prices were high. And then when prices were low and sort of, the drawdown was happening perhaps to buffer down a little bit or to reduce the buffer a little bit. I mean I know it's difficult to share the Board's thinking on this until the Board has thought but is that a fairly reasonable thought process for us to follow? Or has your capital commitments seem to be rolling off now? Or is that too aggressive in that there's too much uncertainty in the market on pricing and demand and cash flow to risk and bank available credit is obviously difficult for coal companies, et cetera?

Question: Tim Clark - SBG Securities (Pty) Ltd - Analyst : It's very helpful. Just my last question, a quick one. You've got various asset sales that you've announced and are announcing. Is there anything you can share for us on cash flow, the sort of like the working cost, the monthly cost that might be saved from these asset sales that we should take into account in our unit cost outlook, not so much the proceeds, so much as the net sort of benefit, the offset cost.

Question: Tim Clark - SBG Securities (Pty) Ltd - Analyst : That's very helpful. Thanks so much, Dion, and congrats on the results, and all the best for the holidays.