[miningmx.com] – SOUTH Africa’s platinum sector may be emerging from the country’s longest ever industrial action but further turmoil lies in wait, according to analysts polled by Bloomberg News who said restructuring was inevitable.
The South African mines “will concentrate on getting to steady-state production first of all, but they’ll be looking to cut costs where they can’ after the strike, Esther Krukowski, at BlueBay Asset Management, told Bloomberg News.
“Everyone shouldn’t be jumping for joy quite yet,’ said Ben Davis, an analyst at Liberum Capital. “The industry still has to restructure.’
The companies are unlikely to cut jobs straight away, said Des Kilalea, an analyst at RBC Capital Markets. “You can’t do that — it will just cause another strike. But you can’t get away from it, there has to be a new structure.’
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