Implats’ earnings may take severe fall after strike

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The world’s second largest platinum producer [DATA IMP:Impala Platinum Holdings LTD.] said that headline earnings per share (HEPS) for the half year ended 31 December 2014 are expected to be between 53 and 77 cents, between 45 and 63 per cent lower than the previous corresponding period.  

Basic earnings per share (EPS) is set to be between 77 and 67 per cent lower than the previous period, between 33 and 48 cents per share, due to the partial collapse of Zimplats’, the group’s Zimbabwean division, Bimha operation.

(READ MORE: Zimplats’ mine collapse cuts platinum output by 50%)   

“The decrease in the HEPS and EPS is primarily due to lower production from Impala Rustenburg, impacted by the ramp-up of operations to reach full capacity following the five-month strike compared to an uninterrupted first half of the previous financial year,” said the company in a statement.

“The group’s production was further impacted by industrial action and safety stoppages at Marula and the precautionary safety closure of the whole of the Bimha operation.”

However, the group said that during November 2014, Impala Rustenburg managed to reach pre-strike production levels while Zimplats has actioned a recovery plan in order to mitigate the impact of the partial collapse of its Bimha operation.

(WATCH VIDEO: Impala Platinum reports 26% decline in Q1)

“This recovery plan includes the mining and processing of supplementary open pit ore while the Bimha mine is re-opened and re-developed,” continued the statement.

Implat’s interim financial results for the half year ended 31 December 2014 are set to be released on the 26 February 2015.