Impala Platinum Holdings Ltd., the world’s second-largest producer of the metal, said profit may fall as much as 77% because of lower output after the longest mining strike by workers at its South African operations.
Basic earnings per share will probably range from 0.33 rand and 0.48 rand a share in the six months ended Dec. 31, or 67% to 77% lower than the same period in 2013, the Johannesburg-based company said in a statement Monday.
The drop in earnings 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.”
Mineworkers at the South African operations of Impala, Anglo American Platinum Ltd. and Lonmin Plc, the world’s three biggest producers of the metal, went on strike at the beginning of last year, demanding an increase in base pay. The companies have since been attempting to raise production to full capacity.
Impala had to impair property and equipment because of the partial collapse of the Bimha mine in Zimbabwe operated by its Zimplats unit. It will take three years to redevelop the operation, Impala said on Dec. 11.
Impala erased earlier gains, dropping 0.6% to 78.51 rand by 3:12 p.m. in Johannesburg.
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