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Thungela Dragline

Thungela Shrugs off Lower Guidance

Despite lowering guidance due to rail network issues, Thungela’s (TGA.LN) shares rose due to hefty dividend.

As reported by Bloomberg:

“The coal spinoff from Anglo American Plc lowered its export guidance this year even as coal prices soared to records, because state-owned freight company Transnet SOC Ltd. is unable to move sufficient volumes by rail. South Africa’s railroad network is increasingly being hit by cable theft and a shortage of locomotives, forcing Thungela to cut production.”

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https://www.bloomberg.com/news/articles/2022-08-15/anglo-coal-spinoff-cuts-outlook-as-rail-disruption-curbs-exports?utm_source=google&utm_medium=bd&cmpId=google

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1 thought on “Thungela Shrugs off Lower Guidance”

  1. The price action post earnings is productive, given the lowered guidance. I’m not sure how I feel about management looking for acquisition opportunities, can’t say I like it to be honest. Stock has been a tremendous performer and remains undervalued, but I’m beginning to have qualms.

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