Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
JOHANNESBURG, Aug 20 (Reuters) – South African producer Impala Platinum (Implats) said on Monday that it expects its full-year loss to widen due to impairments relating to its Rustenburg assets.
The company flagged a headline loss per share for the year ending 30 June of between 162 and 186 cents per share, compared with a loss of 137 cents per share in 2017.
Headline earnings – South Africa’s most widely watched profit gauge – strip out certain one-off items.
“The difference between basic and headline losses is primarily due to the impairment of property, plant and equipment as a consequence of the outcome of the Impala Rustenburg strategic review,” Implats said in a statement.
Implats announced earlier this month that it will slash about a third of its workforce over two years in one of the biggest rounds of job cuts by one mining company in living memory in South Africa, with the focus on Rustenburg.
The company is due to report full-year results next month. ($1 = 14.6363 rand)
(By Patricia Aruo; Editing by Ed Stoddard and Louise Heavens)
