Johannesburg - Anglo American Platinum (Amplats) expects a drop of 20 percent in earnings when it releases its trading statement, the company said on Monday.
“The decrease in headline earnings and headline earnings per share (HEPS) is primarily due to the impact of the five-month industrial action which impacted on operational performance,” said spokeswoman Mpumi Sithole in a statement.
Members of the Association of Mineworkers and Construction Union (Amcu) at Amplats, Lonmin, and Impala Platinum operations in Rustenburg, North West, downed tools on January 23 demanding a basic monthly salary of R12,500.
The strike ended on June 24 when the union signed a three-year wage settlement that would increase salaries by R1000 in the first two years and by R950 in the last year of the agreement.
Amplats will release its trading statement for the period ending December 31, 2014, on February 9, next year.
“Shareholders are advised that headline earnings and headline earnings per share for the period are likely to be at least 20 percent lower - equivalent to at least R290 million and R1.10 per share - than the previous 12 months ended 31 December 2013,” she said.
Headline earnings and HEPS reported for the period ended December 31 last year were R1451 million and R5.56 per share earnings respectively.
She said basic earnings and basic earnings per share (EPS) for the period were likely to be at least 20 percent higher (equivalent to at least R275m million and R1.05 per share) than the previous 12 months ended 31 December 2013.
Basic earnings and EPS reported for the comparative period were a loss of R1370m and R5.25 per share respectively.
Basic earnings for the period included a gain of R243m (equivalent to 93 cents per share) arising on the final phase of the refinancing transaction with Atlatsa Resources Corporation and the scrapping of assets of R257m after tax and minority interest (equivalent to 98 cents per share) following the closure of the Union Mine south decline section.
Basic earnings reported for the 12 months ended December 31, last year included the scrapping of assets of R2026m after tax (equivalent to R7.76 per share) and a R833m loss (equivalent to R3.19 per share) arising from the acquisition of properties as part of the refinancing transaction with Atlatsa Resources Corporation. - Sapa