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Strikes to hit Amplats full-year profit

Jan 14 2013 08:33 Reuters

Striking Amplats mineworkers. Picture: Lucky Nxumalo/City Press

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Johannesburg - Anglo Platinum [JSE:AMS], the world's largest producer of the precious metal, said on Monday it would fall to a full-year loss, hit by lost production from a two-month strike. 

Amplats said it expects to report a headline loss of 491 to 628 cents per share for the year to end-December, compared with a profit of 1 365c a year earlier. 

Amplats, as with other South African mining companies, was hit by two months of industrial unrest last year that started in the platinum industry and spread to trucking companies and farms. 

The worst industrial action in South Africa's post-apartheid history tarnished the country's reputation in the eyes of foreign investors and sparked downgrades of its sovereign debt. 

Amplats said the two-month strike ultimately cost it 306 000 ounces in lost production. 

In addition to lower sales, Amplats said it was also hit by a decline in platinum prices. 

It said it would also write down the value of some projects not considered economically viable by R6.6bn. 

Amplats said it will release its full-year results on or around February 4. The statement made no mention of when the company would announce the results of a review of its platinum operations.

Amplats shares dropped 2% to R489.00 on the JSE.

 

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anglo platinum  |  mining  |  platinum  |  strikes
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