Platinum producer Implats issues profit warning

AFP
Platinum sector striking miners stand behind a fence and barbed wire as they queue to receive food parcels delivered at the St. Mark church in Marikana, South Africa on June 13, 2014
.

View photo

Platinum sector striking miners stand behind a fence and barbed wire as they queue to receive food parcels delivered at the St. Mark church in Marikana, South Africa on June 13, 2014 (AFP Photo/Mujahid Safodien)

Johannesburg (AFP) - The world's second-largest platinum producer, Impala Platinum, issued a stark profit warning on Friday, saying full year earnings would fall by up to 75 percent 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 one percent 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.

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, Lonmin and the union.

The companies reported a combined loss of 24 billion rand ($2.27 billion, 1.7 billion euros) in earnings and said workers lost 10.6 billion rand in wages from the stoppage.

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

View Comments (1)