Member Info for diamondman

Why would anyone trade 1 share pr even anything less than 10, the dealing cost must be over 30%

I only trade in lots of 10k.

I think the rise in the $ means TGA are earning much more per ton in Rand, given that costs are mainly in Rand.

Does coal at $300 a ton now equate to a lot more than it did 6 months ago.
If the £ stays low will the dividend in £ be higher than otherwise?

Any other thoughts on the exchange rate?

The pipeline was already shut. More to do with general market rise.

Pop31... £3 of the drop is due to the dividend so 1632 would be the adjusted price.

No.

It's SA that levy the WHT at 20%. UK tax payers may be able to reclaim 10% if they on on the share register in their own right (not through a nominee account like H-L)

See the section on treatment ok no SA taxpayers below:

https://www.thungela.com/uploads/attachments/cl6tn13spanepojufc8e8lac9-2022-interim-ordinary-cash-dividend-declaration.pdf

HeresHopin.... I own my shares through H-L therefore in a nominee account, what is the situation there as I'm not actually on the register in my own right. If I was I would claim some of the WHT back.

Also if I follow what you say then I'm even more quids in as I sold high yesterday, bought low today and would also pocket the dividend. That can't be right!!!

Sold most of the shares I had outside my Isa and SIPP yest for 1890 avg and bought back today at 1590 avg. Made 60p share which made up for the WHT. Also don't have to pay tax on the divi over £2000.

Will be buying if the SP is anything less then £15.00 tomorrow.

There is no stamp duty when buying/selling Thungela.akes it a good share to trade.

MYluck

The pot at the end of the rainbow was probably scooped up by those who had Anglo shares and bought a shed load at sub £2... I had a wobble when it went from £5 back to £3, but bought a shed load after in my ISA and SIPP.

MyLuck.. if you held till 4.30pm you get the dividend and the drop tomorrow

Pt 2
Topping that, asset manager Abrdn is the sixth largest shareholder in Thungela, according to Refinitiv data, with several of its funds holding the stock. These include: Abrdn Equity Income (AEI), where it is the third largest position in the £199m investment trust run by Thomas Moore; Moore’s open-ended Abrdn UK Income Unconstrained Equity fund, where it is the fourth largest position, making up 4.5% of the £578m portfolio at the end of July; the £108m Abrdn UK Growth Equity fund run by Andrew Millington; and Abrdn UK High Alpha Equity, the £81m fund that Millington runs with Guy Douthwaite.

Abrdn, Odey and Schroders all declined to comment.

While Thungela’s green credentials leave a lot to be desired – particularly for managers who are being forced to consider the ESG merits of their investments – the numbers continue to stack up as demand for coal outstrips supply.

In half-year results last month, the miner reported profits of more than 20 times the year before on the back of soaring coal prices.

Ben Davis, analyst at Liberum, Thungela’s corporate broker, said in August that the miner had delivered a ‘chunky beat’ to numbers and a ‘chunkier dividend’.

‘Management has stuck with its capital returns policy, that all cash after a buffer of 6bn rand post-base dividend is surplus and will be distributed to shareholders,’ said Davis.

‘The dividend of 60 rand per share has an implied annualised dividend yield of 43%. We expect an even larger dividend of 67 rand per share at the full-year results, assuming there is no [merger and acquisition].’

The only issue Thungela has had in its meteoric rise has been a restriction on the amount of coal it can ship out of South Africa due to logistics problems. While Thungela had sold all its coal to Anglo American while under its umbrella, the demerger has seen it diversify its customer base, selling into Europe.

Earlier this year Thungela chief executive July Ndlovu said the group had been plagued by logistics issues caused by South Africa’s state-owned rail and port company Transnet, which has had freight operations hobbled by large-scale copper theft. He said at the time that it was a ‘missed opportunity’ for the company, the mining industry and South Africa.

Anglo’s coal divestment leaves Glencore as the last major holdout in coal among global miners. The Swiss group reported record $19bn profits in the first half of year, with its coal divison generating half of that and more money than the entire group at the same time last year.

Citywide article pt 1

In an era of heightened environmental awareness, South African coal miner Thungela Resources (TGA) has defied the odds to become a somewhat controversial success story, with its shares rocketing well over 10 times as it digs the dirtiest of fossil fuels out of the ground.

When Anglo American (AAL) spun out its coal division as Thungela last year, with a primary listing on the Johannesburg Stock Exchange and a standard listing in London, few could have predicted the trajectory of its shares, which were branded ‘worthless’ by short-seller Boatman Capital.

Its focus on mining thermal coal seemed archaic in a world moving towards renewable energy. But as the Russian invasion of Ukraine sent energy markets into a tailspin, the stock has lived up to its name: Thungela is a Zulu word meaning ‘to ignite
The London-listed shares have soared to trade at around £18.50 today, having started life on the market at 150p per share in June 2021, when they garnered little investor interest.
Including the effect of reinvesting bumper dividends, the stock has now returned 1,619% – or a 17-fold gain – since listing for sterling investors, according to Morningstar data.
Just as mining giant Anglo American wanted to ditch polluting coal from its portfolio to focus on mining metals and diamonds, Anglo shareholders – who had been distributed one share in Thungela for every 10 Anglo shares they held – also wanted to offload them. Thungela shares fell by a fifth at one point on their first day of trading.

Those who held onto the stock have been more than rewarded as the energy crisis caused by the war in Ukraine and the subsequent sanctions on Russian oil and gas imports means demand for coal far outstrips supply.

That helped push thermal coal futures to a record high of $460 a tonne earlier this month at Australia’s Newcastle port, the benchmark for the top consuming Asian region, according to Trading Economics
Winners from Thungela’s spike include well-known fund management names, such as Crispin Odey, who holds the stock in his Odey Swan fund, according to Morningstar data. It is also a big position in other strategies at the group, including the $91m Odey Special Situations fund, while Nick Kirrage and Citywire A-rated Kevin Murphy hold the stock in their £1bn Schroder Recovery fund

As most of us only get £2.40 dividend (after 20% WHT) that equates to a SP drop of around 13%. So if we get a drop of 16% (like on JSE) won't we have lost an additional 3% via the WHT?

I've sold all shares outside my isa today apart from 800 (gives me jist under the £2000 tax free limit). Sold most at an average around 1890.

The JSE price is down over 15%, fully equating to the full dividend. As we only get 80% of the dividend I reckon its less fisky to sell and buy back, esp as no stamp duty on the share purchase.
DYOR
GlA

That's was the SP in Rand before today's drop

I can now see that's equivalent to the £3 per share

Why did the SP on the JSE go down by 15%?

Tiger, TG is obky coal, the other miners advanced due to better stats fron China.

In my opinion most large investors (who are the only ones that really matter) have crunched the figures and will hold as long as the coal price keeps up, which has been discussed here today. They are not swayed by the next dividend, already built into the SP, but are by future ones, global politics and economics esp energy prices in Europe.