Strike ‘severely affects’ Implats’ earnings per share – a 74% drop

2014-08-28 12:19

Impala Platinum’s headline earnings per share decreased by 74%, the company said in its annual results for the year ended June 30.

The group’s unit costs increased by 17.6% while gross refined platinum was 25.5% lower because of the five-month wage strike earlier this year, it said today.

“Subdued platinum group metal prices continued to affect the platinum industry and, together with escalating cost pressures and industrial relations disruptions, have had a severe impact on Implats’ operating and financial performance,” the company said.

“While the unprecedented five-month industry strike at Impala Rustenburg was resolved with a negotiated wage settlement on June 24, it severely impacted its operational performance.”

Implats said despite the impact of the strike, the outside operations – Zimplats, Mimosa and Two Rivers – all performed admirably and delivered good results.

“Throughout the strike period, normal deliveries continued to key customers, albeit at reduced levels in the last two months. In particular, the South African market remained adequately stocked.”

The company was investigating issues like safety, health, productivity and profitability.

“The group has committed significant time and resources to the Rustenburg operations to ensure an uninterrupted return to work and a safe and successful operational start-up.

“The final assessment of the strike effect indicates total lost production, compared to plan, has amounted to 312 000 platinum ounces to June 2014.”

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.