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.”

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