Thungela: Marginalised coal brings excellent returns

Coal miner Thungela is a bit of a pun, really. Anglo American gave the business away to its shareholders at a listing price of around R25 back in June 2021. It dipped on the first day of the listing as funds with an ESG mandate dumped the stock. Since then, it’s been a journey to the moon for this lump of coal.

In the six months to June 2022, HEPS will be between R66.85 and R67.45. Whilst I’m not sure that anyone could’ve really foreseen what has happened in the coal market, the reality is that those who punted on Thungela are smiling from ear to ear. The share traded briefly above R300 yesterday before closing at R291.60. Just the earnings for a six-month period are nearly three times the IPO price!

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