South African miner warns of loss PDF Print E-mail
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Tuesday, 15 January 2013 09:39

Anglo American Platinum is warning investors it may have plunged into a heavy loss last year, with fatal labour unrest hitting its South African operations.

In a profit warning filed with the Johannesburg Stock Exchange on Monday Amplats said its 2012 earnings would probably show a loss of 491 to 628 cents per share, down from a profit of 1365 cents per share in 2011.

The firm is expected to publish full end of year results on or about 4 February.

"Platinum sales volumes for the period were lower primarily due to the two-month illegal industrial action experienced during the second half of 2012," the company said.

Miners demands for higher wages crippled production across South Africa's mining sector, and resulted in violence that killed at least 50 people amid a police crackdown.

The strikes reduced Amplats production by around 306,000 ounces.

The collapse of Amplats' profits raises the spectre of wholesale restructuring and job losses.

The company said a reassessment of the value of its assets resulted in a write-down of 463 million rand ($50.49 million).

Some of these assets, it said, are "not economically viable in the current market environment".

 

 

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