[miningmx.com] – ANGLO American Platinum (Amplats) expected to post at least a 20% decline in full-year headline share earnings owing to the five-and-a-half month strike earlier this year.
The decline in earnings was about R290m which is equal to R1.10/share. Amplats reported a R5.25/share earnings loss in the previous financial year. Shares in the firm are 7.5% weaker on a 12-month return basis.
The Association of Mineworkers & Construction Union (AMCU) launched a nationwide strike in the platinum sector on January 23 that remained in place until June 24 when the union’s leader, Joseph Mathunjwa, called a truce.
According to mine bosses, the strike cost R24bn in revenue for companies affected by the strike including Impala Platinum and Lonmin, whilst employees lost about R10.7bn in wages during the five months.
Amplats’ basic headline share earnings for the year would be 20% higher, however, as it benefited from gains worth R257m, equal to 98 cents/share, following “the scrapping of assets” as a result of the closure of the Union Mine south decline section.
There was also a gain equal to 93c/share “… arising from the final phase of the refinancing transaction with Atlatsa Resources Corporation, Amplats said. Amplats has a 49% stake in Atlatsa but has said it is considering divesting of its shareholding.
Amplats said it planned to present its full-year figures, prefigured by a further trading statement, on February 9.
February represents a busy month for South Africa’s platinum sector as Impala Platinum also promised to unveil the results of a strategic review of its assets whilst proposals to sell Rustenburg assets will also put Amplats under scrutiny.
Amplats said last month that it would start to evaluate bids for its Union section whilst proposals to sell its Rustenburg operations were ongoing.
Lonmin said on November 10 that it planned to trade out of the current depressed platinum price, a strategy that would see it harvest old shafts, optimise newer ones, and re-deploy many of its 28,000 staff as it sought to save R2bn over three years.
