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JOHANNESBURG, FEB 16 – Impala Platinum, the
world’s second-largest platinum producer, reported a 66 percent
jump in first-half earnings after a weaker rand bolstered the
price it receives for its product.
The company, which lost 33,000 ounces of output in the last
four months of 2011 because of government-ordered safety stops,
is currently struggling with labour woes, which could hit output
for the remainder of the year.
South Africa’s government has ramped up efforts to reduce
accidental deaths in the its mines, which are some of the
world’s deepest and most dangerous.
The safety drive across the gold and platinum industries has
cut output and is a key reason behind a 17 percent spike in spot
platinum so far this year.
The company said an illegal strike at its Rustenburg
operations which resulted in the firing of over 17,000 workers
had cost it 60,000 ounces in lost outut as of Feb 14 and the
mine remains shut.
This will bite into its production and earnings for the rest
of its financial year and has prevented it from taking full
advantage of the recent recovery in the platinum price.
Headline earnings were 573 cents per share for the six
months to the end-December, a huge spike from 345 cents a share
in the same period the previous year.
Headline earnings, the main profit gauge in South Africa,
strip out certain one-time items.
The platinum price fell during the period, but that was
counter-balanced by a sharp decline in the rand which Implats
said resulted in exchange gains of 608 million rand.
(Reporting by Ed Stoddard; editing by David Dolan)
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