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Johannesburg - Impala Platinum Holdings [JSE:IMP], the
world’s second-largest platinum producer, reported a 66% jump in first-half
earnings after a weaker rand bolstered the price it receives for its product.
The company, which lost 33 000 ounces of output in the last
four months of 2011 because of government-ordered safety stops, is currently
struggling with labour woes which could hit output for the remainder of the
year.
The government has ramped up efforts to reduce
accidental deaths in South Africa's mines, which are some of the world’s deepest and
most dangerous.
The safety drive across the gold and platinum industries has
cut output and is a key reason behind a 17% spike in spot platinum so far this
year.
The company said an illegal strike at its Rustenburg
operations, which resulted in the firing of over 17 000 workers, had cost it 60
000 ounces in lost outut as of February 14 and the mine remains shut.
This will bite into its production and earnings for the rest
of its financial year and has prevented it from taking full advantage of the
recent recovery in the platinum price.
Headline earnings were 573 cents per share for the six
months to the end-December, a huge spike from 345c/share in the same
period the previous year.
The platinum price fell during the period, but that was counter-balanced by a sharp decline in the rand which Implats said resulted in exchange gains of R608m.
