Jp Morgan's Stake In July Ndlovu-led Thungela Drops Below 50 Million

JP Morgans stake in Thungela grew to 6.63, but market value dropped below 50 million due to falling coal prices and shifting investor sentiment.

Thungelas 2024 revenue rose to 2 billion, but net profit declined 30, pressured by higher costs and weaker coal prices in H1 before a partial recovery.

Despite challenges, Thungela expanded by fully acquiring Australias Ensham mine, supported by a strong balance sheet and assets rising to 2.7 billion in 2024.

JP Morgan Chase Co. has seen the value of its stake in South African thermal coal exporter Thungela Resources Ltd. fall below 50 million, despite holding a current 6.63 percent stake, up from 5.21 percent over a year earlier. The decline reflects a significant pullback in Thungelas share price amid shifting coal market dynamics and mounting valuation pressures.

The value of JP Morgans holding fell from R1.13 billion 58.82 million in September 2023 to R835.38 million 46.97 million as of May 2025, following a share price drop from R154 8.66 to R89.58 5.04. The move signals what could be a long-term strategic bet by the U.S. bank, even as the coal miner grapples with a volatile operating environment.

As of Sept. 6, 2023, JP Morgan owned 7.32 million shares in Thungela, valued at R1.13 billion 58.82 million. By May 6, 2025, a recent disclosure showed that their holding had increased to 9.31 million shares, giving them a 6.63 percent stake. However, the value of these shares had fallen to R835.38 million 46.97 million.

This peculiar situation owning more shares but seeing their total worth decline reflects the cautious mood among investors. Concerns about global moves to reduce carbon emissions and unclear policy directions have made coal stocks less attractive.

Under July Ndlovu, Thungela reported mixed 2024 financial results . Revenue rose to R35.55 billion 2 billion from R30.63 billion 1.72 billion in 2023, but net profit dropped sharply to R3.59 billion 201.84 million, down from R5.16 billion 290.12 million the previous year.