Impala Platinum Sees Profit Fall as Much as 75% After StrikeAndre Janse van Vuuren
Impala Platinum Holdings Ltd., the world’s second-biggest producer of the metal, said full-year profit declined as much as 75 percent after a five-month strike at its biggest South African operation crippled output.
Earnings excluding one-time items will be 0.82 rand (8 U.S. cents) to 0.98 rand a share for the year ended June 30 compared with 3.30 rand a year earlier, the Johannesburg-based company said today in a statement.
“This is mainly due to the five-month industrial action experienced by the Impala Rustenburg operations,” Impala said in the statement.
The walkout by more than 70,000 miners at Impala, Anglo American Platinum Ltd. and Lonmin Plc cost the companies about 24 billion rand ($2.3 billion) in lost output and workers 10.6 billion rand in wages by the time it ended on June 24. The strike pushed the economy into contraction in the first three months of this year as mining output plunged. South Africa accounts for more than two-thirds of mined production of the metal.
The stock declined as much as 3 percent to 103.41 rand in Johannesburg and traded 1.5 percent lower at 105.01 rand by 10:53 a.m. Yields on Impala’s rand-denominated bonds due in February 2018 rose to a record, gaining 10 basis points to 9.893 percent.
Impala’s results will be released on Aug. 28.