07 Aug — 4 SENS announcements reviewed
EPS surged 457-475% to R10.75-R11.10 (H1 2025: R1.93). HEPS up 140-158% to R4.60-R4.95, stripping a R1.0bn non-cash Kleinkopje mining right disposal gain. Headline earnings R580m-R630m on improved coal prices, better RBCT throughput, and rand weakness. Full results 17 August.
Thungela's H1 2026 trading statement is what a commodity recovery looks like in raw numbers — EPS rocketing from R1.93 to a R10.75-R11.10 range, a nearly 5x improvement. The eye-watering headline is flattered by a R1.0bn non-cash gain from the Kleinkopje mining right disposal, but even stripping that out, HEPS of R4.60-R4.95 represents a 140-158% lift from the depressed H1 2025 base of R1.92. That's genuine operational recovery, not accounting smoke.
The three drivers here are textbook coal-exporter arithmetic: stronger API4 benchmark prices, improving throughput at Richards Bay Coal Terminal (finally), and a weaker rand amplifying dollar revenues. Headline earnings attributable to shareholders are guided at R580m-R630m. With the share count trimmed to ~127m shares, the per-share maths works in investors' favour. The Kleinkopje gain, while excluded from HEPS, is strategically interesting — it's portfolio rationalisation, crystallising balance sheet value from an asset approaching end-of-life. Full results drop 17 August. The market will be watching for the dividend signal.
Arbitrator awarded R74.6m in damages against Spur Group in the GPS Food Group dispute, forcing a R129.5m total provision. Spur is appealing (hearing Feb 2027, senior counsel confident of success). Reported EPS guided 31-41% lower (199-233c) but adjusted HEPS up 5-13% (357-384c). Dividends unaffected — strong cash reserves. Year-end results 20 August.
The GPS Food Group saga has been dragging on since 2019, and the latest quantum award — R74.6m in damages plus interest and legal costs totalling R129.5m — isn't the outcome Spur wanted. However, management is appealing in its entirety and senior counsel believes the group has strong prospects of success. The appeal panel of three independent arbitrators sits in February 2027. For now, Spur books the provision but continues business as usual.
The more important number is adjusted HEPS — excluding the once-off GPS provision, it's guided at 357c to 384c, up 5-13% year-on-year. That's from a base of 339.88c in FY2025. The underlying restaurant franchise business is healthy, with sufficient cash reserves to absorb the provision without touching dividends. The market will want to hear about restaurant count growth and franchisee profitability at the 20 August results. If the GPS appeal goes Spur's way, that R129.5m flows straight back. For now, the market is pricing the litigation overhang while the operations hum along.
MTN updated the market that IHS Towers has completed the sale of its Latin American tower operations on 7 August 2026. This is a procedural step in the broader $6.2bn all-cash acquisition of IHS by MTN at $8.50/share — a deal that will give MTN 100% control of Africa's largest independent tower operator.
This SENS is process, not fireworks — MTN notifying shareholders that IHS Holdings has completed the sale of its Latam tower operations, a housekeeping step in the path to MTN's full acquisition of IHS. The $6.2bn deal, announced in February 2026, will see MTN take 100% ownership of IHS at $8.50 per share. The Latam divestiture cleans up IHS's portfolio ahead of closing.
Strategically, this matters enormously. MTN already uses IHS towers across its African footprint for network infrastructure. Bringing tower assets in-house removes a cost line and gives MTN operational control over a critical part of its infrastructure stack. The forward PE of 12.2x reflects some deal optimism but the balance sheet will stretch — IHS carries meaningful debt. With MTN's H1 results due 14 August, the market will be watching for colour on financing plans and synergy targets. For now, this is a checkbox ticked on the way to a transformational deal.
Nedbank announced a board director resignation with associated committee changes, and flagged further board changes before end-August. Rob Leith has been reappointed to a key committee role as the bank stabilises governance. The boardroom reshuffle comes against a backdrop of strong operational performance — Nedbank's PE of 7.88x remains the cheapest of the Big Four.
Nedbank's boardroom is in flux. A director resignation announced Friday evening triggered committee reshuffles, and management has pre-announced more changes before the end of August. The reappointment of Rob Leith to a key committee signals an effort to steady the ship. Board-level churn at a bank this size is never ideal, but Nedbank's executive team under Jason Quinn has been delivering — HEPS was up 2% in the latest interim results, and the cost-to-income ratio improved to 56.2%.
The governance noise shouldn't distract from the valuation case. At a PE of 7.88x, P/B of 1.16, and ROE of 13.78%, Nedbank is the cheapest Big Four bank by most metrics. The market is pricing in the board uncertainty but the operational engine is running smoothly. More detail promised before month-end — investors should watch for who's filling the vacant seats.