Share

Implats reviewing options to restore profits

Johannesburg - World number two platinum producer Impala Platinum [JSE:IMP] posted a 74% drop in full-year earnings on Thursday after most of its South African operations were hit by a five-month wage strike and said it was reviewing options to restore profits.

"A comprehensive strategic planning exercise has been initiated to assess the full impact of low PGM prices and the strike consequences on the profitability at Impala. This is due for completion by December 2014," the company said.

A painful restructuring is expected in the platinum sector after a strike by the Association of Mineworkers and Construction Union (Amcu), the longest and costliest in the nation's history, which ended in June.

Implats' rivals Anglo American Platinum [JSE:AMS] and Lonmin [JSE:LON] were also hit by the strike and Amplats has said it plans to sell or spin off some of its mines.

Implats said headline earnings per share slumped to 86 cents from 329c, in line with guidance it provided to the market earlier this month, and that its final assessment of the strike showed it had lost 312 000 ounces of production.

"Throughout the strike period, normal deliveries continued to key customers, albeit at reduced levels in the last two months," the company said.

The restart of its key Rustenburg operations, which were at the epicentre of the strike, was "progressing well", Implats said.

No dividend was declared for the year.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders