Thungela Resources Ltd. said Monday that it expects export saleable production of 14.9 million metric tons of coal in 2021, in line with the latest guidance.
The South African coal miner, a spinoff of Anglo American PLC, said production guidance isn’t subject to any further deterioration in the performance of Transnet Freight Rail or increased Covid-19 restrictions. Export equity sales are expected at 13.7 million tons.
Thungela said that it may declare additional returns above the targeted payout ratio of at least 30% of adjusted operating free cash flow, subject to the company’s financial situation. Thungela said the upper end of the liquidity buffer range is appropriate in the current market conditions.
The company intends to maintain a liquidity buffer of between 5 billion and 6 billion rand ($310.9 million-$373.0 million) after strong market conditions, and ZAR2 billion-ZAR3 billion following weaker conditions.