Strikes put Anglo American Platinum in the red

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“The financial results for the six months were negatively impacted by the industrial action which endured for five months, which was partially mitigated by the sale from inventory during this period. Headline earnings decreased to 157 million rand compared to 1.3 billion rand in 2013,” Anglo American Platinum said in a statement.

“The group generated a profit of 429 million rand, attributable to ordinary shareholders. Attributable profit for the period was 1.64 rand per share and headline earnings was 60 cents per share.”

[DATA AMS:Anglo American Platinum] is the world’s largest platinum producer and headquartered in South Africa. 

Operating profit increased to 353 million rand for the six months ended 30 June 2014 from 2.6 million rand in the previous comparative period in 2013.

(READ MORE: Amplats will not make profit this year after strike -CEO)

Gross sales revenue reported an increase from 27.8 million rand for the period under review from 24.3 million rand in 2013. Gross profit on metals also increased to 928 million rand from 2.8 million rand in 2013.

“Mogalakwena and Unki mines and the associates and joint ventures portfolio, which remained strike-free, all showed year-on-year improvements in production. Rustenburg, Amandelbult and Union operations were affected, losing an estimated 440 ounces (including 16 ounces post the strike during ramp-up) of equivalent refined production,” Anglo American Platinum explained.

“In addition, production was reduced by 87 ounces following the consolidation of Rustenburg from five to three mines and Union from two mines to one mine as part of the company’s restructuring.”

The firm’s Thembelani mine and Modikwa platinum mine also reported slight losses in net sales revenue for the period under review.

“A final assessment of the impact of the strike confirms that total lost platinum production has amounted to an estimated 424,000 equivalent refined platinum ounces to 24 June 2014. Further losses of 16 ounces have been incurred during the ramp-up phase of production to 30 June 2014,” said Anglo American Platinum.

The firm recently announced that it planned to sell some of its mines in an effort to recover from the 5-month long industrial action.