News Column

Amplats slashes its half-year earnings forecast due to strike

July 15, 2014

OLIVIA KUMWENDA-MTAMBO



SOUTH African miner Anglo American Platinum said yesterday its first-half earnings would fall by as much as 96 per cent after a fivemonth strike - the longest and most damaging in the country''s history - crippled its operations.


Members of the Association of Mineworkers and Construction Union (Amcu) downed tools at Amplats, Impala Platinum and Lonmin in January demanding higher wages. The workers returned to work in June.


Amplats said it expected headline earnings per share for the six months to end-June to fall to between 20 cents (12p) and 80 cents, from 514 cents a share in the same period last year.


Headline earnings are the main profit gauge in South Africa and exclude certain one-time items.


The company has said it was reviewing options for its Rustenburg operations, which were hit by the strike and its parent Anglo American has signalled its intention to possibly dispose of some of its ageing platinum assets.


Shares in Amplats fell two per cent in Johannesburg trading.


Reuters


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Source: City A.M. (UK)


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