South African coal miner Thungela Resources (LSE: TGA) saw its profits plummet in 2023 due to weak coal prices and rail issues, but its share price rose in early trading on Monday.
Thungela’s pretax profit tumbled 70% to R7.2 billion (£301.1 million) in 2023, hit by a 40% decline in revenue to R30.63 billion. This was caused by a significant drop in coal prices and ongoing problems with South Africa’s rail network, Transnet Freight Rail.
Despite the heavy losses, Thungela’s share price rose 7.2% in early trade on the news. This could be due to the company’s announcement of a share buyback program of up to R500 million starting on Tuesday, and its forecast of continued production growth in 2024.
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