Thungela Resources expects to maintain its full-year production guidance after a stronger coal price environment and improved rail performance supported first-half trading.However, operational challenges at one of its South African mines and a stronger rand continued to weigh on parts of the business.In a pre-close statement on Tuesday, the thermal coal producer said export saleable production, which refers to coal processed to meet export quality specifications, is expected to reach about 6.3-million tonnes (Mt) from its South African operations for the six months ended June, broadly in line with 6.4Mt a year earlier. At its Australian Ensham mine, export saleable production is expected to increase to 2.0Mt from 1.6Mt.The company said it remained confident of achieving its full-year export saleable production guidance of 13.0Mt to 13.6Mt.Production in South Africa benefited from improved performance at the Khwezela and Mafube coal mines. However, Zibulo experienced conveyor belt and mining support services challenges, which Thungela said were temporary and are expected to be resolved once production shifts fully to the Zibulo North Shaft.South African export sales, including about 0.7Mt of third-party coal, are expected to increase to 7.5Mt from 6.6Mt in the first half of 2025. The company said the increase was driven by improved performance at Transnet Freight Rail, and additional rail capacity secured from producers unable to fully utilise their allocations.Renewed buying from India has supported Richards Bay benchmark prices after earlier weakness caused by demand for cheaper lower-quality coalThe Richards Bay benchmark thermal coal price was $104.25 a tonne during the first five months of 2026, compared with $89.53/t for the 2025 financial year, while the Newcastle benchmark was $124.79/t, up from $105.37/t.Thungela said thermal coal prices initially strengthened alongside oil and gas markets as tensions in the Middle East raised concerns over global energy supplies and shipping through the Strait of Hormuz. More recently, renewed buying from India has supported Richards Bay benchmark prices after earlier weakness caused by demand for cheaper lower-quality coal.The company realised an export price of $87.60/t through the Richards Bay Coal Terminal, about 16% below the benchmark, as more lower-quality coal was sold from stockpiles.The stronger rand weighed on financial performance, with the exchange rate averaging R16.40/$ during the period compared with R17.89/$ in 2025. Despite this, the company said higher dollar coal prices helped offset the currency impact.The company expects to end the first half with net cash of between R5.9bn and R6.1bn, including about R1bn generated from foreign exchange derivatives. It said it will pay at least 30% of its adjusted operating free cash flow as dividends to shareholders.The company is due to report interim results on August 17.Business Day