Implats foresees lower earnings per share on Bimha mine closure

bimha-mineSouth Africa-headquartered Impala Platinum says it expects its earnings per share for the full year to December 2104 to fall on account of the impairment of property, plant and equipment that came as a result of the collapse of Bimha mine at Zimplats.

In statement, the company said headline earnings per share (HEPS) for the half year ended 31 December 2014 is expected to be between 53 and 77 cents which is between 45 percent and 63 percent lower than that of the prior year of 142 cents.

“After the impairment of property, plant and equipment as a result of the partial collapse of the Bimha

operation at Zimplats, basic earnings per share (EPS) are expected to be between 33 and 48 cents which is between 77 percent and 67 percent lower than the previous comparable period, being the half year ended

31 December 2013 (EPS of 145 cents),” the company said.

Zimplats shut down Bimha mine, its largest underground operation, following a ground collapse at the mine in July last but announced in December that it has started re-developing the mine but warned that it would take three years to get back to the original footprint.

Apart from the impact of the Bimha mine collapse, the firm said the EPS was affected by lower production at Impala Rustenburg in South Africa and industrial action at Marula

It said Impala Rustenburg reached pre‐strike production levels and Zimplats has now set off a recovery plan that mitigates the impact of the partial collapse at the Bimha operation.

“This recovery plan includes the mining and processing of supplementary open pit ore while the Bimha mine is re‐opened and re‐developed,” the firm said.

The group’s reviewed interim financial results for the period ended 31 December 2014 will be released on February 26.

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