JOHANNESBURG (miningweekly.com) – Impala Platinum (Implats) on Thursday reported a 77.6% drop in headline earnings for the six months ended December 31, 2012, to R776-million, compared with headline earnings of R3.47-billion in the six months to December 2011.

Revenues of R15.2-billion were 2% down on the comparable period in 2011.

Despite a 25% drop in production at its labour-beleaguered Rustenburg operations, to 368 000 oz, the company managed a 2% increase in gross production for the half-year to 865 000 oz.

Lower refined volumes at Rustenburg also pushed group unit costs up from R11 283/oz in 2011 to R15 983/oz, which were further affected by group inflation of 14.5% on the back of wages, consumables and price increases.

Lower dollar metal prices reduced revenues by R1.7-billion, primarily owing to reduced dollar prices for platinum, palladium, rhodium and nickel, which reduced by 7.9%, 12.1%, 35.9% and 19.9% respectively.

However, lower dollar metal prices were offset by a weaker rand, which gave rise to a positive R1.7-billion in revenues.

Rustenburg

Amid significant labour disruptions during the period, adequate above-ground stocks coupled with an anaemic macroeconomic environment resulted in stressed platinum-group-metal prices, which placed several shafts in a loss-making situation, Implats said in a statement.

The focus at Rustenburg remained on the development of the three new major shafts.

First production had started at 20 shaft, while at 16 shaft equipping was in progress, with first production scheduled for next year, and sinking at the 17 Shaft complex remaining on target.

“Labour relations at Rustenburg continue to receive management’s highest attention. Following the derecognition of the National Union of Mineworkers, we are now embarking on a new labour dispensation. Our approach in this regard is based on an inclusive rather than an exclusive one that enables representation of multiple unions,” the platinum miner said.