Thungela warns of a loss as a result of impairments
JSE-listed Thungela Resources expects to report a loss a share of between R53.50 and R56 for the year ended December 31, 2025, compared with the earnings a share of R26.76 reported for 2024.
The loss for the current period is expected to be between R7-billion and R7.3-billion.
The headline loss a share is expected to be between R5.50 and R7.50, a decrease of between R31.09 and R33.09 apiece from the headline earnings a share of R25.59 in the prior year.
The headline loss is expected to be between R700-million and R1-billion.
The expected loss incurred for the year is primarily as a result of impairment losses of R8.8-billion recognised across Thungela’s operations, both in South Africa and Australia, based on a softer benchmark coal price outlook and stronger forecast for its producing currencies against the dollar at the reporting date.
The determination of the value of the recoverable amounts of Thungela’s assets also impacts the recoverability of the deferred tax assets, reflecting the possible future tax benefit to be received against taxable income in subsequent periods.
Deferred tax assets of R1.1-billion have accordingly not been recognised at the reporting date on the basis of the assessment performed, which has further lowered both earnings and headline earnings, Thungela points out.
While the impact of the impairment is excluded from headline earnings, the impact of not recognising the deferred tax assets is not a headline earnings adjustment, and has contributed to the realisation of a headline loss for the year, it explains.
Thungela expects to release its financial results for the period on March 23.
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