Thungela Resources: Dividend Delight Signals Strong Earnings Momentum

  • Thungela Resources declares an interim dividend of 1,000.00 cents per share from strong earnings in H1 2023.
  • Dividend key dates announced, payments in ZAR and GBP, tax implications detailed for South African and UK shareholders.
  • Shareholders advised on smooth payment process, urged to monitor SENS and RNS for potential updates.
Thungela Resources

Thungela Resources Limited, a notable player in South Africa’s mining sector, has declared an interim dividend that underscores the company’s strong performance and commitment to delivering value to its shareholders. The dividend, amounting to an impressive 1,000.00 cents per share, is drawn from retained earnings during the six-month period ending 30 June 2023.

The announcement was made by Thungela’s board of directors on Monday, 21 August 2023. The company’s issued share capital, totaling 140,492,585 ordinary shares, forms the basis for the dividend distribution. This dividend declaration comes as no surprise to industry experts, considering Thungela’s consistent track record of operational excellence and financial prudence.

Thungela’s financial success is further substantiated by the established dates surrounding the dividend distribution:

DateJSELSE
Declaration DateMonday, 21 August 2023Monday, 21 August 2023
Last Day to QualifyTuesday, 19 September 2023Wednesday, 20 September 2023
Trading Ex-DividendWednesday, 20 September 2023Thursday, 21 September 2023
Record DateFriday, 22 September 2023Friday, 22 September 2023
Payment DateTuesday, 26 September 2023Monday, 9 October 2023

Shareholders will receive the dividend payment in South African rand, and those on the UK register will receive their payment in Pound sterling. The exact Pound sterling amount will be determined using the exchange rate GBP1:ZAR24.26300, which is based on the five-day average GBP:ZAR exchange rate up to Thursday, 17 August 2023.

To ensure a seamless payment process, Thungela Resources urges shareholders to verify their bank mandates or international payment instructions well in advance of the last day of trading. The company emphasizes that electronic payments facilitate efficiency and timeliness.

Tax Considerations for Shareholders

The dividend’s tax implications differ for shareholders on the South African register versus those on the UK register. South African shareholders will not face tax consequences, but a 20% withholding tax will apply to shareholders who are not exempt from dividends tax or fail to meet the criteria for a reduced rate of withholding tax according to applicable double taxation agreements.

Should the 20% withholding tax be applicable, shareholders will receive a net dividend of 800.00 cents per share. This figure is calculated by deducting the 200.00 cents dividend withholding tax per share from the gross dividend of 1,000.00 cents.

Similarly, shareholders on the UK register will also be subject to a 20% withholding tax. Those eligible for exemption must provide requisite documentation to Computershare UK, the intermediary responsible for processing these declarations.

The necessary documentation includes a declaration of exemption from dividends tax and a written undertaking to inform the regulated intermediary of any changes affecting the exemption. To avail of the exemption, documents must be submitted to Computershare UK by Friday, 15 September 2023.

In this scenario, the net dividend for UK shareholders subject to a 20% withholding tax will amount to 32.98 pence per share. This calculation involves subtracting the 8.24 pence dividend withholding tax per share from the gross dividend of 41.22 pence.

Investors are advised to closely monitor announcements on SENS (Stock Exchange News Service) and RNS (Regulatory News Service) for any potential changes to the dividend instructions and timetable.

In a move that reaffirms its commitment to delivering value to shareholders, Thungela Resources’ interim dividend announcement serves as a testament to the company’s dedication to its financial strength and steadfast growth in the mining industry.

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