JOHANNESBURG, South Africa, Nov. 15, 2004 (PRIMEZONE) -- Impala Platinum Holdings Limited (Implats) (Pink Sheets:IMPUY) (Other OTC:IMPAF) (JSE:IMP) (LSE:IPLA) (ADRS:IMPUY) hereby provides a financial update on the strike action relating to the wage dispute at our Impala Platinum operations in Rustenburg:
Most category 3-8 employees of whom 73% are NUM members and amounting to 17 000 employees, went on strike on the evening of 30 September 2004. This strike lasted for 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. Impala 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.