* FY headline EPS drop 38 pct to 685 cents from 1,105 cents
* Production down 21 percent at 1.45 million ounces
* Cuts dividend to 195 cents a share from 570 cents
* Platinum producers discuss collective bargaining
(Adds details throughout and analyst quotes)
By Sherilee Lakmidas
JOHANNESBURG, Aug 23 (Reuters) – Industrial unrest at South
Africa’s platinum mines, resulting in the death of workers at
Implats and rival Lonmin , is increasing the
risks facing the sector as it grapples with low prices and
rising costs, a senior executive said.
“We are walking a tightrope,” said Terence Goodlace, newly
installed chief executive at world No.2 platinum producer Impala
Platinum (Implats).
“These developments pose a significant risk to the industry
… At this point we believe we have a measure of stability, but
it is unreasonable to say nothing will happen to us,” Goodlace
said on Thursday, at a presentation on the company’s results
which showed a 38 percent drop in headline earnings to 685 cents
per share from 1,105 cents.
The South African platinum industry has been hit by a wave
of labour unrest, first at Implats’ Rustenburg operations at the
start of this year and more recently at Lonmin, which led to
police killing 34 striking miners in a hail of bullets last
week.
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