Implats - Financial Update - Strike Action In October 2004
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration No. 1957/001979/06)
ISIN: ZAE000003554
JSE SHARE CODE: IMP
LSE SHARE CODE: IPLA
ADR CODE: IMPUY
(`Implats`)
FINANCIAL UPDATE - STRIKE ACTION IN OCTOBER 2004
Implats hereby provides a financial update on the strike action relating to the
wage dispute at our Implats operations in Rustenburg.
Most category 3 to 8 employees of whom 73% are National Union of Mineworkers`
members amounting to 17 000 employees went on strike on the evening of 30
September 2004. This strike lasted ten production days and the workers returned
to work on the evening of 12 October 2004.
Negotiated settlement - The differential between the company`s offer of 7,5% and
the unions` demand of 8,5% was settled at 8% across the board, backdated to 1
July 2004. As part of the settlement, the unions committed to support the
implementation of productivity initiatives (drill jigs) at the operations.
Impact on production and profit - Ten production days were lost (out of some 275
production days per annum), equivalent to lost platinum production of 44 300
platinum ounces. The estimated loss in profit was R177 million, equivalent to
R2,70 per share. The estimated financial and operating impact of this strike is
as follows:
Total
Production
Tonnes (t) 632 900
Platinum ounces (oz) 44 300
Financial
Revenue (Rm) (344)
Lower operating cost 57
Gross operating loss (287)
Net loss (after tax and royalties) (177)
It should be noted, however, that these are preliminary estimates. Implats
operations are considering plans to recoup lost production by end of the current
financial year. It is unlikely that we will be able to make up the lost
production by the half year. It should be noted that the lost production
relates only to production from the Impala Lease Area. Gross production for the
half year is anticipated to be at levels similar to those achieved last year.
Houghton
15 November 2004
Sponsor:
Deutsche Securities (SA) (Proprietary) Limited
Date: 15/11/2004 04:25:51 PM
Produced by the JSE SENS Department |