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.