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Thu 28 Aug 2025
Close: 19 071c 
Day's move: -126c (-0.66%)
Volume: 789 365
Trades: 3 783
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Revenue for the period rose to R20.6 billion (R19.0 billion) with net operating profit coming in higher at R4.1 billion (R3.7 billion). Profit attributable to owners of the parent increased to R4.1 billion (R3.7 billion). Additionally, headline earnings per share was up to 1 724c per share (1 528c per share).
Notice of interim cash dividend
At the board of directors meeting held on 19 August 2025, the directors approved a gross interim dividend of 843 cents per share. The Interim Ordinary Dividend was declared from profits generated during the six-month period ended 30 June 2025 and has been declared from income reserves.
Company outlook 2H25
Economic context
Since April 2025, trade-related risks have eased following the US reversal of reciprocal tariffs and resumption of negotiations with China. These developments had a positive effect on financial and commodity markets, leading to recoveries in equity indices, crude oil prices, and the US dollar.
Nonetheless, global uncertainty remains elevated, with market confidence still fragile due to the unpredictable nature of the US trade policy.
In South Africa, real GDP growth was modest at 0.1% quarter-on-quarter in early 2025. However, there is cautious optimism that economic activity will strengthen in the second half of the year, despite the ongoing volatility in global trade dynamics.
Commodity markets and price
Seaborne thermal coal may find support during the northern hemisphere summer driven by normalising stockpiles and rising seasonal demand. European imports are expected to remain stable influenced by limited wind and hydro generation, coal blending requirements, renewed emphasis on grid stability following the recent blackouts in Spain, and the need for price stability in the power markets.
The outlook for 2H25 appears stable, supported by consistent domestic supply and a diversified energy mix in India and China, including renewables, hydro, and gas. Other markets such as Japan, Korea, and Taiwan also show adequate energy supply across nuclear, gas, renewables, and coal.
European restocking, which can influence South African coal prices, particularly in 4Q25, may have a muted impact this year. Sufficient gas storage capacity is expected to meet winter demand, potentially reducing the need for increased coal consumption.
Domestically, improved economic activity could stimulate coal demand, especially as Eskom progresses in resolving operational challenges. Despite ongoing infrastructure constraints, we continue to explore all viable routes to market to meet customer needs and unlock value.
In the iron ore market, rising supply and subdued Chinese demand remain key headwinds for our investment in SIOC. India stands out as the only market with notable growth in steel production. Additionally, any new tariffs imposed by the US could introduce further volatility across equity and commodity markets.
Operational performance
In the Waterberg region, coal offtake for the power stations is likely to depend on whether operational performance improves, although the timing and extent of such improvements remain uncertain.
Our full year coal guidance given at the finance director’s pre-close message remains unchanged as follows:
• Production to be in the range of 38.9Mt to 42.8Mt
• Sales are expected to be in the range of 38.3Mt to 42.4Mt
• Export sales are expected to be between 6.5Mt and 7.2Mt
• Sustaining capital is guided between R2.1 billion to R2.3 billion
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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