CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Thungela (TGA) stock soars after bullish trading report

By David Burrows

10:03, 6 December 2021

Close up view of coal chippings mined in South Africa
South African coal mining company Thungela was spun out of Anglo-American this year – Photo: Alamy

Thungela Resources saw its stock price soar in early morning trading – up over 16% to 388.19p.

The rise was due to a positive trading statement today from the South African producer of low-cost thermal coal.

Thungela said that demand for energy, including thermal coal, had continued to improve as global economic activity recovered from the Covid-19 pandemic.

The company said coal supply from major international basins had been “disrupted” by logistical constraints in China, Russia and Indonesia, as a result of community unrest in Colombia, and with geopolitical tensions between Australia and China. Against this backdrop, Thungela said demand had stayed “firm” for high-quality South African coal.

Stock price volatility

It has been an eventful year for Thungela since its spin-off from Anglo American in June this year – the company was formed by the demerger of Anglo American’s thermal coal operations in South Africa

Thungela stock – which debuted at 150p a share this summer – took a pounding on its first day on the London stock exchange, down to 125.5p in just a couple of hours.

TSLA

239.02 Price
+1.900% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.14

NVDA

467.55 Price
+0.310% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.14

GME

15.36 Price
+5.850% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.16

AMZN

147.02 Price
+0.760% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.14

One of the reasons given at the time was that investors were influenced by a note from analysts Boatman Capital suggesting Thungela was “drowning in liabilities”.

It has been something of a rollercoaster ride since then – Thungela stock hit a high of 498p on 6 October before falling to between the 290p and 333p level, rising again today to around 388p.

Commenting on the latest trading numbers, Deon Smith, CFO at Thungela, said: “Given the strong price environment and performance, Thungela is likely to return to profitability in respect of earnings per share and headline earnings per share for the 2021 financial year, following a loss in the 2020 financial year.

“Since listing, Thungela has delivered on its purpose of responsibly creating value together for a shared future. Strong cash generation since listing means that we enter FY2022 in a position of strength and we are excited about the opportunities to create value for our shareholders, our host communities as well as our employees.”

Read more: Thungela Resources stock plunges on LSE debut

Markets in this article

AALl
Anglo American
23.035 USD
1.93 +9.170%

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading