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Implats warns of sharp fall in profits

Johannesburg - The world's second-largest platinum producer, Impala Platinum [JSE:IMP], issued a stark profit warning on Friday, saying full year earnings would fall by up to 75% after a five-month strike.

Implats, which operates mines in the platinum mining belt north west of Johannesburg, saw its share price sink by more than 1% on the news.

The slump in profits "is mainly due to the five-month industrial action experienced by the Impala Rustenburg operations," the firm said in a statement.

Read: Concerns about aftermath of platinum strike

Implats is due to release its financial results on August 28.

The firm was of the three top global platinum producers hit when almost 70 000 members of the Association of Mineworkers and Construction Union (Amcu) downed tools in January.

The longest mining strike in South Africa's history ended on June 24 with the signing of a wage increase agreement between the firm, Anglo American Platinum [JSE:AMS], Lonmin [JSE:LON] and the union.

Read: Amcu, platinum firms sign mine deal

The companies reported a combined loss of R24bn in earnings and said workers lost R10.6bn in wages from the stoppage.

The Johannesburg Stock Exchange (JSE) listed company also owns Zimplats in Zimbabwe.

Read: Zimplats gets smelter to comply with new laws

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